Buying and selling of the property can be very stressful and demanding. Real estate agents are there to act as a bridge between the person who sells home and the one who is looking to buy a home. As a real estate agent, you need to know how to satisfy both sides, and still manage to stay above the water while negotiating the prices. PromisePropertyManagement.com have really good agents and for this occasion, we have prepared a few tips that you need to have in mind, especially if you are working as a real estate agent. Keep these in the back of your brain as you need to make both sides of transactions happy.
Compare the local home prices
When negotiating the price, an experienced real estate agent will always inspect the surrounding properties in the neighborhood to know how much of tolerance he has while setting the final price. Let’s take an example: if a home that a person wants to buy a property that is worth $120.000, but the rest of houses in the same street/area/neighborhood have the prices of $100.000, the agent has enough room to lower the price. That is why they always tend to know the prices of the apartments in a certain area.
Know the market
Like in every industry, there are trends that skyrocket once in a while, and the trend in real estate business means that one area is much more desirable than others. This means that if you, as an agent, are trying to sell a house that has a lower value, you can always try to convince the buyer to pay more as the area is going to be hot – people will love to live there as the area has just got a new fountain and a park. This, knowing of the market and trending is crucial for getting a good price for the home you are trying to sell.
Discuss the repairs
Before you buy a house (of before you buy anything) you will want to make sure that everything is good with the house, regarding the interior, roofing, installations and so on. In case the house has a lot of repairs, a good agent can use this to talk down the seller and lower the price as the house needs some repairs. In this way, a discussion can make a difference in several thousands of dollars, so make sure you inspect everything.
Hiding the information
When a person gets a mortgage, they have a certain amount of money approved. Now, the real estate agent will be able to hide this information. A person that sells the house does not know this, and this enables an agent to prevent a seller from raising the value of house. A person may want to get $150.000 for the house, while the approval is $200.000. This gives the experienced agent enough room to keep the costs as low as possible.