What You Must Not Do While Buying Property
Buying a property can be very tough as there are as many scams in the real estate sector as there are genuine projects. Even in the case of genuine projects, there are more cases than you count of those who have been taken for a ride by the builders. If you do not want to end up in either of these categories, there are a few things that you must do to make up for your mind before you go into a real estate investment.
1. Do not trust too much: Real estate salesmen are trained and have practised the art of selling dreams. Do not trust all that they say. Their predictions of how property prices will rise will be over-the-top. Do not believe in their numbers and percentages. Make your own calculations and develop your own sources for this kind of information. Remember that you are paying the value of the property that it is now, and not for the future. Communicate that before the marketing blitzkrieg starts to affects your decision-making capability.
2. Do not give excess information: It is a two-way street. Do not give take excess information and do not give it either. Especially information like the amount of down payment you are ready to make, the cash that you have in hand and the source of your funding, etc. That will give away your bargaining chip to the agent or the broker who will then assess your spending capability. This might take away the ability to get discounts.
3. Do not expect too much: Do not go looking for that property that you have in mind with distinct contours of size and shape. Have an idea and be demanding of how much you want to spend and the kind of property you want, but do not be too rigid. That might make you a progressive hunter of a perfect property, landing on none.
4. Do not give up on a deal: You should never give up too soon. Remember that real estate negotiations are long and can be tiring and very stressful. But, keep on with it. Take pointers from the Mario Puzo’s The Godfather, the most powerful man in the world of crime who gets there by patiently negotiating without being swayed not getting irritated, or letting ego take over what he wants. Try to replicate this storybook model while clinching a deal. Most tough deals are worth it.
5. Do not be vulnerable: If you look vulnerable and are not very confident, agents and brokers are like sharks that will attack at the first sign of weakness. Do not look like a person who would either give up or give in. Make enough time to spend on real estate investments and it would take up a lot of effort. If your work and other pressures are high on your mind, you will be vulnerable while making a decision. Ensure that this does not hurt you.
Being strong and in control will make you a better negotiator and you might end up winning in the game.
(Katya Naidu has been working as a business journalist for the last nine years, and has covered beats across banking, pharma, healthcare, telecom, technology, power, infrastructure, shipping and commodities)