How can I negotiate the purchase of a property in Chile?

Buying a property is one of the most important investments you can make in your life, but it can also be one of the most difficult, especially if you don't know how to negotiate the price with the seller. Often, the price of a property is inflated by emotional, speculative, or market factors that don't reflect its real value. That's why it's important that you know how to identify the weaknesses of the house, how to use them to make a reasonable offer, and how to persuade the seller to accept your proposal.

In this blog, I will give you some tips to focus on negotiation aspects based on the weaknesses of the house. Remember that it's better to buy the ugliest house in the best neighborhood. How to detect an opportunity. How to buy as cheaply as possible.

• Identify the weaknesses of the house: The first thing you should do is identify the weaknesses of the house you want to buy, that is, the negative or unfavorable aspects that can affect its value or functionality. These weaknesses can be of different types, such as:

  • Structural: These are related to the quality or condition of the construction, such as cracks, leaks, humidity, pests, defective installations, etc. These weaknesses may require costly repairs or pose risks to the safety or health of the occupants.

  • Aesthetic: These are related to the design or appearance of the house, such as colors, furniture, decoration, lighting, etc. These weaknesses may affect the taste or comfort of the buyers, but can be easily modifiable or improvable with a minimal investment.

  • Legal: These are related to the legal or tax situation of the house, such as encumbrances, prohibitions, expropriations, seizures, lawsuits, overdue taxes, etc. These weaknesses may prevent or hinder the transfer of ownership of the property or generate fines or sanctions for the buyer.

  • Market-related: These weaknesses are related to the conditions of the environment or the demand for the house, such as location, accessibility, nearby services, security, capital gain, competition, etc. These weaknesses can influence the attractiveness or performance of the property as an investment or as a residence.

To identify the weaknesses of the house, you can use different sources of information, such as:

• Visit the house: This is the most direct and effective way to know the house and its characteristics. You can observe in detail every space and every element, take photos and videos, ask questions to the seller or broker, and request the relevant documents.

• Search for information online: This is the fastest and most convenient way to access information about the house and its environment. You can consult real estate portals, social networks, digital maps, official statistics, news, etc.

• Hire a professional: This is the safest and most reliable way to obtain truthful and objective information about the house and its value. You can hire an appraiser, an architect, a lawyer, a real estate advisor, etc.

• Use the weaknesses of the house to make a reasonable offer: The second thing you should do is use the weaknesses of the house to make a reasonable offer, that is, a fair price according to the real value of the property. For this, you must take into account the following aspects:

  • Prioritize structural and legal weaknesses: These are the most important and the ones that most affect the value of the house. If you detect any of these weaknesses, you can use them as an argument to lower the price or to demand that the seller solve them before the sale. For example: "I have noticed that the house has a leak in the roof that can damage the structure. Are you willing to fix it or lower the price based on the cost of the repair?"

  • Evaluate aesthetic and market-related weaknesses: These are the least relevant and the ones that most depend on the taste or need of each buyer. If you detect any of these weaknesses, you can use them as an opportunity to improve the house or to negotiate the price. For example: "I like the house, but I think it needs a renovation in the kitchen and bathroom. Could you give me a discount for these repairs or include them in the price?"

  • Compare the price with similar properties: This is the most objective and reliable way to determine the market value of the house. You can look for similar properties in the same area, with the same characteristics and conditions, and see how much they are selling or renting for. This way you can know if the price the seller is asking for is reasonable or not. For example: "I have seen that other houses in this neighborhood are selling for 100 million pesos, and yours is at 120 million. Why is there so much difference?"

• Persuade the seller to accept your offer: The third thing you should do is persuade the seller to accept your offer, that is, convince them that your proposal is the best option for them and for you. For this, you must take into account the following aspects:

  • Know the seller's situation and needs: This is the key to establishing a relationship of trust and empathy with the seller. You must find out why they want to sell the house, what their expectations, urgencies, fears, interests, etc. are. This way you can adapt your offer to their circumstances and offer them solutions to their problems. For example: "I understand that you need to sell the house soon because you are moving to another city. I am looking for a house to live with my family and I really like yours. What do you think if I pay you 80% of the price in cash and the rest in monthly installments?"

  • Highlight the benefits of your offer: This is the way to show the seller the advantages and benefits they will get if they accept your offer. You must highlight the positive aspects of your proposal, such as speed, security, comfort, saving, etc. This way you can generate trust and satisfaction. For example: "If you accept my offer, you can sell your house in less than a month, without having to pay commissions or taxes, or make repairs or paperwork. In addition, I will give you a purchase guarantee and help you with the move."

  • Use effective negotiation techniques: These are the tools that will help you influence the seller and achieve a beneficial agreement for both. You can use techniques such as rapport, anchoring, contrast, silence, closure, etc. This way you can create a favorable climate, establish a point of reference, show alternatives, subtly press, and close the deal. For example: "I think we have a good connection and we want the same thing: a quick and secure sale. I offer you 90 million pesos for your house, which is a fair and reasonable price, considering the weaknesses it has. If you accept my offer right now, I will give you a 10% advance and we will sign a purchase and sale agreement."

By following these tips, you can successfully negotiate a property, focusing on the aspects of negotiation based on the weaknesses of the house. Remember that it's better to buy the ugliest house in the best neighborhood. How to detect an opportunity. How to buy as cheaply as possible.

I hope this blog has been useful to you and that you can negotiate your new property.