Psychological factors that will help you buy and sell property
Whether you’re buying or selling a property, there are a number of psychological factors that come into play during the negotiation process. Being aware of these and using them to your advantage will help you achieve your desired outcome.
Make first impressions count
Not only do first impressions count, they also last.
If a property looks shabby and unkempt on the outside, that image stays in the mind. It also sets an expectation of what the inside of the property is going to look like.
All it takes is a fresh coat of paint on windows and doors and a tidy up of lawns and flowerbeds to make a property look like someone bothers to take care of it. It may be superficial, but these details can make a big difference to the mindset of a potential buyer.
Match the home to the lifestyle
If you’re a seller, make your buyers aware of local attractions. It could be first-class schools, flourishing businesses, excellent bars and restaurants or an attractive beach or woodlands nearby. Even a popular golf course can be an incentive.
As a buyer, you want to know what’s likely to appeal to you in the area and if you’re a property investor purchasing a buy-to-let, you want to know what’s going to entice tenants.
Take emotion out of the deal
The most common problem for buyers is falling in love with a property that doesn’t fit the bill. You may adore it, but does it offer what you need either as a home or a buy-to-let?
Always try and give yourself more than one option. If you set your heart on one particular property, that puts you in a vulnerable position when it comes to negotiating the best price.
Instead, try and take emotion out of the equation and replace it with logic.
For example, if you’re a buyer, you should have a list of ‘must haves’ and ‘nice to haves’. Evaluate each property you see on this basis and dismiss any that don’t possess any of your ‘must have’ features.
If you’re a seller, you need to be realistic about the current market situation and your selling price. Do your research before you fix on the figure you want to receive for your property – you’ll avoid disappointment that way.
Be prepared for offers and counter offers
Negotiation is a tricky business, and it helps if buyers put themselves in the shoes of sellers and vice versa.
If you’re new to buying a property, remember the asking price has likely been set with a buffer in mind. Dare to risk a low offer (but be prepared to be outbid); you can always go back with a higher one.
As well as price, are there any other factors that will make you attractive to the seller? Can you move fast? This is preferable to being stuck with a buyer who’s in an endless chain. Are your finances in place? This is more attractive than a buyer still trying to get mortgage approval.
A quick sale is nearly always attractive, so highlight any advantages you may have in this respect. Any other incentives that will add value to your offer price should be pressed home.
Taking these psychological factors into consideration when negotiating will help you to use your head not your heart and ultimately get a better deal.
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Dates: 29th and 30th March 2019
Venue: Marriot Hotel, Heathrow
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