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The offer and subsequent negotiation determine whether one will make the transition from buyer to owner of St Lucia real estate. This makes the offer the pivotal point of a property transaction – a point which must be approached wisely. You don’t want to overpay for a property. At the same time, making an offer that is too low may offend the owner and cause you to lose the property before the negotiations even begin. The following points will guide your approach to making offers on St Lucia properties.

Supply and demand of St Lucia Real Estate

The balance of supply and demand is one of the biggest clues on how aggressively one can negotiate the price of St Lucia real estate. In a hot sellers’ market, many buyers will be competing over a small stock of properties for sale. In this case, the seller has the upper hand and will be less likely to reduce their price.  However, when the reverse is true, many property owners are competing over a handful of qualified buyers.  Buyers are at liberty to negotiate at will. When on the hunt for St Lucia properties, it is therefore critical to know what type of market conditions you are operating in.

Price of similar St Lucia Properties

Before making an offer on St Lucia real estate, gauge fair market value for the property by comparing it to similar properties that have recently been sold. This will tell you what other buyers, operating under open market conditions are prepared to pay for a similar property. Factors that one should consider when making a comparative analysis of St Lucia properties are their location, size, age, quality of architecture and construction and type of view.  Estimating property values is a delicate science which requires consideration of all of these factors. For instance, 2 equally sized properties located side by side may have completely different values if one is 10 years old while the other is brand new.

Seller’s Motivation and Terms of Offer

A piece of St Lucia real estate may be up for sale for any number of reasons. A seller who is under pressure due to financial and personal obligations will be more likely to negotiate than one who is prepared to wait until the right offer comes along. For example, a developer, who sells St Lucia properties as their primary source of income, calculates their costs and expected revenue before construction even begins. This type of person may be less likely to reduce their price as they have fixed costs to cover. The seller will also consider the terms of your offer. A cash offer is far more appealing than one for which financing must be sourced from scratch. When buying St Lucia real estate, someone with large savings has far more negotiating power than one who is seeking 100% financing.

Negotiations are a balancing act. All of these factors affect the flexibility of the price of any piece of St Lucia real estate. The buyer and seller both want a good deal and the sale often depends on whether the parties are willing to compromise.  The best advice is to approach the negotiation with a win-win attitude. Keeping all these factors in mind, seek a fair and amicable common ground. A seller is more likely to want to negotiate with someone who is reasonable, than one who is trying to break them down. Practice this tip and you will find that your negotiations for St Lucia properties will be far more satisfying.