Home » Home purchase proposal in Italy: How much to offer?

Home purchase proposal in Italy: How much to offer?

The negotiation to buy a property in Italy is one of the most interesting topics for those who have to take this important step. But for all of us, when we approach this moment, there is a question that torments our mind: How much to offer in the home purchase proposal?

It might seem incredible to you, but there are a lot of psychological studies and research on the subject of negotiation and you should definitely not let chance guide you in such an important moment.

For work reasons, I often study research and books on the subject. One of the latest and most interesting was Chris Voss’s “Wanting Too Much and Getting It” (a former FBI hostage negotiator), based on scientific research and a host of real-world experience.

From this book, I have drawn some concepts expressed in this article and I recommend reading them if you want to deepen these aspects.

But let’s dive into the topic together and understand how much to offer if we are faced with the negotiation on the purchase price of a house in Italy.

DISCLAIMER: It is not about mental manipulation methods or anything like that, but about techniques based on experience and studies.

INDEX

  1. In the negotiation to buy a house, do not be in a hurry
  2. Don’t be afraid to bargain
  3. Ask for a price at which you can negotiate the purchase of the house
  4. How much to offer in the home purchase proposal
  5. The average discount on home purchase negotiation
  6. What to do if the property purchase proposal is not accepted
  7. How to close the deal and buy a house
  8. How much to offer in a home purchase proposal: conclusions

1. In the negotiation to buy a house, do not be in a hurry

We are irrational beings and, for this reason, many of the concepts you will find in this article may seem counterintuitive and not very rational, but I assure you that a rational negotiation has only a small part.

Your goal will be to understand all the signals and stealthily move through the meanders of the mind of the person in front of you, gradually “implanting” your idea in his mind as if he had generated it (if a person thinks he has given birth an idea will tend to give it more importance).

You may need time to do this, don’t be in a hurry to conclude a deal.

home purchase proposal: do not be in a hurry do not rush

Some basic rules:

When negotiating, whether on the phone or in person, make sure you don’t have any commitments rushing you to end the conversation (if you’re going to pick up the kids from school, ask someone to do it for you).

Do not be too quick to get to the point, some people need time to develop some concepts and ideas or who need to create a minimum of “relationship” with the counterpart, according to the timing of the person in front of you.

Don’t be in a hurry to “spit out” your price, but above all, never first go out with the price you would like to close the trade at. Take your time.

The person in front of you (yes, always remember that you are facing a person) will appreciate your calm and the fact that you have taken the time to talk about your real estate deal.

If you want to have advice on how to carry out your negotiation or you want to be followed by a professional, book your consultation.

2. Don’t be afraid to bargain

One of the biggest obstacles, when we find ourselves at the point of having to make an economic offer (not just for the purchase of a house), is fear.

Personally, I have observed 2 types of fear:

  • Fear of annoying the other party, making them angry or passing for profiteers.
  • Fear that our “indecent” proposal will actually be accepted due to a situation of need, or fear of taking advantage of the other.

They are two opposite fears, but you must learn to overcome them if you want to be successful in negotiation.

If you fall into the first case study, you think that it is simply a fear of the opinion that others have of us, you already know that you shouldn’t worry too much about what others think of you.

If, on the other hand, you are in the second situation you can really feel comfortable. The other party will only accept your offer if they see it as beneficial to them. If the seller needs money and accepts a particularly low offer, you are helping them resolve their situation.

If you did not buy the property, the owner would remain there with his problems!

3. Ask for a price at which you can negotiate the purchase of the house

Before bringing out the price you want to offer to buy the property, ask (the seller or the real estate agent) at what price the agreement could be closed.

Ask for a price at which you can negotiate the purchase of the house.

Before bringing out the price you want to offer to buy the property, ask (the seller or the real estate agent) at what price the agreement could be closed.

This will allow you to test the readiness to negotiate and, in most cases, you will receive a lower price than the initial one.

It might be a lot lower or just slightly less, but it’s already a step forward nonetheless.

Keep this figure in mind because you will need it to make your first offer.

4. How much to offer in the home purchase proposal

There are 3 factors to take into consideration to formulate the purchase proposal.

  • The market value of the property
  • The price desired by the seller of the property
  • How much would you like to buy the house

 

Calculate the value of a property

To calculate the market value of a property you have many possibilities:

  • Contact a professional for evaluation
  • Request an online home valuation
  • Try to understand the value of the property on your own

If you want to have a complete overview of how to calculate the value of a property and the real measures in Italy I suggest you read this article.

Understanding the value of a property you want to buy is essential to understand if the price requested by the seller is in line with the market and if our offer is correct.

Once you understand what real estate is really worth, you have to deal with what the seller would like to achieve and the price we are interested in buying.

5. Average discount on home purchase negotiation

The discount on the initial asking price can be as much as 10-15% (At this link you can see the average discount in your city). So don’t be afraid to risk a proposal! You will always be in time to improve it later.

The advice is to start from a lower price than the goal you have set for yourself, let’s see with a practical example.

Asking price: € 300,000

Purchase target: € 270,000

In this case, the first proposal could be around € 240,000.

Does it seem excessive to you? It may seem like a very tight negotiation in absolute terms, but what is the worst that can happen?

Let the seller reject your proposal, but don’t worry! Let’s see in the next paragraph what exactly you need to do in this case.

6. What to do if the property purchase proposal is not accepted

Behind an initial “No”, there could be a hidden “Yes”, which will lead you to close the deal.

If the seller does not accept your purchase proposal, you may find yourself faced with two situations:

  • The owner makes you a counter-proposal
  • The owner refuses without any counter-offer

 

What to do if the seller makes a counteroffer

The situation is positive, you have opened a negotiation.

If the price is right, accept the counteroffers and close the deal.

If the price can still be improved, you must carefully balance your responses by raising the offer or rejecting the offers.

My advice is to refuse offers in a very polite way, it is a simple but powerful action. This is because we put the counterpart in a position to “raise against itself”.

The other person will be implicitly pushed to propose a better price, without you having moved a cent from your initial position.

You can also gradually increase your offer, I recommend that you prepare at least 3 steps to raise the offer. Based on the example of the previous paragraph:

First proposal: € 240,000

Second proposal: € 255,000

Third proposal: € 265,000

Latest proposal: € 268,500

As you can see, I raised the price three times, but the amount of the raise is gradually smaller and the latest offer is a really strange number: € 268,500 …

Why?

By raising with increasingly narrow margins, you will give the impression of getting closer and reaching your limit.

Finally, with a final proposal that is not a round figure, you will pass the idea of ​​having given all your possibilities (you could also inform the seller of your calculations) and have reached the maximum figure, throwing in the proposal also the last € 500 you have left.

What to do if the seller refuses but does not expose himself with a counter-proposal.

In this case, the best move, in my opinion, is to ask directly:

“I understand that my proposal is not enough, but at what price would you be happy to find an agreement?”

In this way, we push the counterpart to make us a counter-offer in a “forced” way.

If you can’t get any money, then you will be forced to take a step forward. In this case, I recommend that you use the strategy of successive raises outlined in the previous paragraph.

Now you just have to go and close, let’s see how in the next paragraph!

do you have a question for us? contact us for free from here or from the chat at the bottom right.

7. How to close the deal and buy a house

The main rule to close a deal, I will always repeat, is to satisfy who we have in front of us.

If the person with whom we negotiate is not satisfied with the agreement, he will not accept and, if he does too, problems will arise in the future.

This is why you ask many open questions and create a relationship with the seller, understand his point of view and solve his problems.

The problems may not be directly related to the price, but affect other variables such as the deposit or the timing of the transaction.

In these situations, you could give the seller something that is of little value to you (for example a couple of months more for the move), but that can make a big difference for him!

At that point go and close your deal!

8. How much to offer in a home purchase proposal: conclusions

I hope I haven’t given you too much information all at once and remember that the best thing for me was to participate in many negotiations and accumulate experience. It can be difficult to negotiate optimally in the first few attempts.

If you need a professional for your real estate negotiation, at any level, click here and book your consultation.

If, on the other hand, you have a question for us, contact us for free from here.

And share with your friends!

chiara.cesca

Leave a Reply

Your email address will not be published.

Back to top