Are the Stated Castle and Luxury Real Estate Sales Prices Negotiable?
"'Negotiations on the amount of the purchase price are of course allowed - courtesy and respect will increase your chances of success!"
You have made the decision to buy a particular palace, castle, or a luxury property - now it's about that all-important money! You have spent a lot of time and effort looking at historical properties, stately homes, and castles with your ASP castle broker. You have reconciled these properties with your wishes and requirements and checked they are within budget. The funding is also lined up, so it all comes down to negotiating the final purchase price, as well as finalizing the acquisition conditions with the owner to such an extent that you can then hire a lawyer / notary to finalize the purchase contract. The following tips are not intended to "lecture" in any way, but please allow us to present some practical information that we have gathered over the years for potential clients to read up on.
Are the stated sales prices of palaces and luxury real estate fundamentally negotiable?
It's a definite yes, of course they are. The stated sale price reflects the uniqueness, condition, location, potential usage possibilities, furnishings, style, revenue, size, and marketability of the property, but there is usually a margin for negotiation with the owner. What you ultimately end up paying for your dream property largely depends on you and your negotiating skills. Respect, courtesy and openness in all areas and stages of talks are the greatest aides you can have in these negotiations and will provide you with an advantage over your fellow prospective buyers. Refrain from making an offer that is too far below the owner’s asking price. This could be seen as an insult most likely closing the door to future discussions and negotiations.
What value is used to calculate the brokerage commission to be paid for a castle, historical property or luxury real estate?
The amount of the buyer's commission to be paid can be found in our advertisements or is detailed in the particulars of the respective property. The broker commission fee - the fee that the buyer or tenant has to pay after the successful conclusion of the purchase contract - is calculated using the final price stated in the contract concluded with the owner. Even if this price is more or less than the original purchase price / lease rate stated in advertisements, or in the property particulars.
You do not wish to conduct the purchase negotiations yourself
You have decided to purchase or lease a specific hotel or rental property. You have a clear price in mind but for various reasons you do not wish to negotiate with the owner yourself. That is no problem whatsoever! In this case, you can request that your ASP hotel broker perform binding negotiations with the hotel owner. Of course you specify the price you would like to pay (the best solution is to set a price range). This is his job and, of course, it is also his job to see to it that the two parties reach a consensus.
Tip from an ASP expert real estate broker when the seller’s lowest selling price for a property is still too high?
But you definitely want this palace, castle or luxury property but at the price you envisage. Then we recommend that you proceed with a special binding approach. You submit a binding purchase offer that is 100% binding in accordance with your price expectations for the real estate in question. You can obtain the contract from your ASP Hotel broker. You thereby commit yourself to buying the property for a certain amount under certain conditions. This document is signed by you and presented to the hotel owner by your hotel broker. If the hotel owner signs and accepts your offer, the contract becomes binding, requiring acceptance and delivery of contract terms by both parties. This approach is not a guarantee for success, however, approximately 70% of all real estate owners accept such binding purchase offers even if it is a little below the set reserve price!
Beware! This process should and must only be used, if you are 100% sure you will be able to come up with the purchase price within the time period stated or you have guaranteed financing. Please keep in mind that in some countries certain regulations must be observed (notary required for binding purchase offers in Germany, clause suspensive in France, etc.).
Your ASPI hotel real estate agent will advise you accordingly. Please contact us in full confidence knowing our professionalism as a real estate brokerage, ASP Global Luxury Properties & Castles.