Real Estate Prices

It has been reported that real estate prices in the South have dropped nearly 7% in December 2008 compared to December 2007 for existing homes. Moreover, the prices have been under pressure in Florida more than any other state. While not exactly good news for existing homeowners, potential buyers should be ready to pounce on some great deals.

Purchasers in Orlando have begun to notice this and are pouncing on the lowered prices. Sales of existing homes in the area are up 30%, while prices have fallen more than 25%. Here are some tips to negotiating a great deal in a sluggish economy:

Preparation- It has often been said that the most commonly overlooked aspect of negotiation is preparation. A good negotiator plans thoroughly. The Orlando Realty Expert website has some great tools to help you get prepared.

1. You should first know about the prices of houses in the neighborhood. This will help you decide how much money other buyers are willing to pay and other sellers are willing to take for a comparable house.
2. Having the option to walk away from the deal always makes a seller nervous about closing a deal. Therefore, showing interest in more than one house will allow you to drive a hard bargain with a particular seller. Search for comparable houses that fit your needs and make sure that the seller knows that you have more than one option.
3. Search for foreclosed properties that may be good deals. According to some sources, you could find a house for 40% of the original mortgage price.
4. Get a good feel for the Orlando market. The more that you know about other houses, the better chance you’ll get a great deal from the current seller.
5. Have a good idea of the money you’re willing to spend and the amount that a bank or other institution will lend to you. This way you’re not overspending and getting yourself in trouble.

Listen: Let the seller begin the negotiations first. Even if you love the house, give the seller the impression that you need to be “talked into” purchasing the home. This will allow you to gather more information about why they are selling the house and what kind of purchase price they are asking for. This will also allow the seller a chance to slip up. In a negotiation, people often talk to fill voids in the conversation and reveal more about their positions than they originally intended. Use this information to your advantage.

Drive a Hard Bargain Softly: No one likes a jerk, but you need to make sure that you are getting what you want out of this deal. Don’t be afraid to throw out a number that you think may be insulting. The old maxim rings true: If you don’t ask, you won’t receive.

Hire an Expert: Someone who has connections and experience is a fantastic resource. An expert can help you handle complex deals and contracts, as well as advise you on the area schools, zoning regulations and local economy. An expert can often facilitate a bargain you would never get yourself.