5 Tips for negotiating the value of a property

Can you imagine buying your dream home at a price that not only fits your budget, but also makes you feel like you won the negotiation? Negotiating the value of a property may seem intimidating, but with the right strategies, you can become an expert in the art of real estate haggling. In Mexico, for example, 70% of buyers are able to reduce the price of a property if they negotiate intelligently. Want to know how? Read on and discover the 5 tips that will help you close the perfect deal.

1. Research like a professional: Know the market in depth.

Before making an offer, you must become an expert in the local market. Why? Because knowledge is power.

• Compare prices: Check similar properties in the same area. How much do they cost? What features do they have? Platforms like Inmuebles24 or propiedades.com, or Nolab's marketplace, are excellent resources.
• Analyze trends: In 2023, the real estate market in Mexico showed a 5% drop in used home prices, which means sellers may be more willing to negotiate.
• Evaluate the property: Does it need repairs, how much would it cost to fix it? Use these details to justify a lower offer.

Extra tip! ➡️ If the property has been on the market for more than 3 months, the seller is likely to be more open to negotiate. Take advantage of it!

2. Define your budget and stay calm

One of the most common mistakes is letting emotions take over. To avoid this:

• Set a clear limit: Decide how much you are willing to pay and do not exceed it. Remember to include additional expenses such as taxes, notary and possible repairs.
• Be patient: Don't show desperation. If the salesperson senses that you are too interested, you will lose leverage.
• Strategic Offer: Start with an offer 10-15% below list price. This gives you room to negotiate without offending the seller.

3. Use flaws to your advantage

Does the property need repairs? That's your best argument!

• Professional inspection: Hire an expert to identify hidden problems, such as leaks, cracks or electrical faults. Use this report to justify a price reduction.
• Calculate costs: If the property needs $100,000 in repairs, ask for an equivalent discount or for the seller to cover part of the costs.
• Negotiate concessions: Instead of lowering the price, ask them to include furniture, appliances or make repairs before the sale.

4. Choose the right time

Timing is everything in real estate.

• Year-end: In the fall and winter, many sellers are more motivated to close deals before the end of the year for fiscal reasons. This gives you more bargaining power.
• Buyers' market: If there are more properties than buyers, sellers will be more willing to lower prices.
• Stalled properties: If a house has been on the market for months, it is likely that the seller will accept a lower offer in order to close the deal.

Interesting fact: In 2022, properties sold in December had an average discount of 8% from their initial price.

5. An expert realtor is key to getting the best value for your money.

A good real estate agent, or realtor, not only helps you find the ideal property, but is also your best ally in the negotiation.

• Local knowledge: Agents know how the market works in your area and can give you valuable insights.
• Professional negotiation: They are experienced in closing deals and can handle difficult conversations without letting emotions get in the way.
• Time savings: An agent can screen properties, arrange viewings and guide you through every step of the process.

According to a study by the Mexican Association of Real Estate Professionals (AMPI), 85% of buyers who use an agent achieve a better price than those who do it on their own.

Negotiate with confidence and close the perfect deal

Negotiating the value of a property doesn't have to be stressful. With solid research, a clear budget and the right tactics, you can save thousands of pesos and get the home of your dreams. Remember: every negotiation is unique, but with these 5 tips, you'll be prepared to face any challenge.

Ready to get started? The real estate market is waiting for you! And if you need more help, don't hesitate to contact us to find your next luxury property - good luck! 🏡✨