Buying an Orlando investment property in this market requires sharp negotiating skills. It also requires a willingness to walk away if the deal just isn’t right for you.
A lot of investors are finding themselves paying more than they expected for properties. They’re waiving inspection requirements and agreeing to terms that would be unheard of if the market wasn’t so tight. Inventory is low and demand is high. So are home prices. Prepare to negotiate fiercely if you want a particular property for a specific price.
Having a great real estate agent on your side can help you negotiate the best possible deal. We have some additional tips that might help you strategize as you approach a competitive and sometimes unpredictable Orlando real estate market.
Negotiate From a Place of Knowledge
You cannot negotiate a good deal if you don’t understand the Orlando market. There are many reasons that it’s so competitive right now. You’ll be in a stronger position if you understand the population growth, demographic trends, property prices, and the length of time most homes spend on the market.
You’ll need to understand the rental market, too. How much rent can you expect to earn? How quickly will you find a tenant? Having this data will allow you to negotiate more confidently. You’ll know exactly what you need and why it’s worth it for you to push back against time-wasting techniques from the other side.
Decide Where Your Bottom Line Rests
Understand your own purchasing power and what your budget is.
This helps you negotiate because you’ll know your own boundaries.
You’ll need to know how you’re financing this deal before you begin making offers or considering counter-offers. Paying in cash, for example, will give you a bit more leverage with a seller. It promises a quick, uncomplicated sale, and a lot of sellers are willing to drop their price point in order to access that ease.
You should have a budget in place so you know how hard you can negotiate and how much wiggle room you have when the seller pushes back.
Negotiate Inclusions as Well as Price Points
When you negotiat. e, you aren’t just negotiating the purchase price. There’s so much more that’s on the table.
Use inclusions towards the end of the negotiation process. If you are leaning towards accepting the seller’s latest offer, ask for something in return. Maybe they’ll leave appliances, have the carpet replaced, or provide some other incentive.
Using inclusions can help you get closer to your target price when you’re negotiating an investment property purchase.
Prepare to Compromise While Negotiating. Or, Don’t.
You likely won’t get everything you want. But, if you’re willing to compromise and be flexible, you can likely come away with a deal that makes you happy. Give a little in the places that you can, but hold firm in the areas that really make a difference to you.
And, prepare to walk away if you have to. There’s no reason to try and force a deal into place if it’s just not happening.
These are some of the negotiating tips and tricks that we offer to our investors who are looking to acquire a new property. We can help you gather some of the data and information you’ll need before you begin negotiating for a new Orlando investment property.
Please contact us at Park Avenue Property Management. We lease, manage, and maintain residential rental homes throughout central Florida, including Orlando, Lake Buena Vista, Kissimmee, Celebration, Maitland, Altamonte Springs, West Palm Beach, and Tampa Bay.