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Tips for first-time land buyers- How to Negotiate Land price

Posted by Denkolimited on September 6, 2018
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Sometimes getting land at your desired price might look like a far-fetched idea. Nevertheless, you can turn around a seller’s pricey mind by pressing the right buttons.

If you are a first-time land buyer, things look even thicker from your perspective. However, there is an advantage in dealing with an experienced real estate company such as Denko Properties Limited.

Over the years we have been dealing land, we have managed to pick up a few tricks and tips to get the seller to sing to your tune within no time.

Here are a few tips that you should consider when negotiating the land price in Kenya.

Take your time with the property.

Don’t be lazy, take a walk and see the real land on location instead of relying on video footage and photos from real estate agents. While at it, learn about the history of the area where the land is located.

You can get information from the locals or the local administration. Make sure you learn as much as possible in regards to the land. You should know the restrictions, past events, the surroundings and anything that can help you make a bargain of the plot.

Always remember that the more you know about an area, the easier it is to negotiate. For instance, if you know, there are seasonal flash floods or tribal clashes, this could help you in bringing the price down further due to the risks involved.

Also, take your time to be familiar with the other parties.

In essence, what you need to know is the motive of the seller and how far they are willing to go. In this regard, you are able to make an offer that isn’t ridiculously low or out of reach either. Once you know the other party accurately, you are able to get them to listen to you more easily.

Be reasonable and make a fair offer

Through your previous research or due diligence efforts, you are able to make a generous offer mostly by estimating the value of the land from this information. For instance, you should ask the price of land around and know the average pricing in the area with all the amenities included. Do not be selfish, make a reasonable offer so that the other party may show interest in the deal.

Your real estate agent should be able to obtain vital information regarding the land in question especially when confirming the main selling points. To avoid too much back and forth, give the seller a reasonable price tag. The rule of thumb is to offer at most 20% lesser than the regular selling price in the area.

 

Plan to counter.

Since you are offering 20% less, you should expect resistance, but that’s part of the game. If the seller doesn’t hear you out, try and come up with a counter offer that still favors you but is a bit lenient with the seller. The counteroffer shouldn’t be away from the primary offer. For instance, if your main offer was 20% less the normal buying price in the area, your counteroffer can be 14% less. This goes a long way to show you are seriously interested in the project and know the value of the land.

 

Check out part 2 next week!

 

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