THE ART OF NEGOTIATION

Got your eyes on the prize but just don’t know how to initiate negotiation and enter buyers territory? Good news is, you don’t have to be a skilled negotiator to get a great price for your dream property. Here are some tips and tricks you can use to start negotiating today!

1. DO YOUR RESEARCH

Not only does this show that you are serious, it gives you a good understanding of the current market. Compile a list of comparable sales and weigh up their pros and cons in relation to the sale price. This will help you come to a conclusion of what you should offer for your dream property. However, it is important to ensure the information you have cited is reliable and recent.

2. COMMUNICATE WITH THE AGENT

Forming a good relationship with the agent selling the property can be an extremely valuable thing. It is important to be clear and upfront with the agent. If you are serious about the property, LET THEM KNOW! Getting closer to the agent will also help you get an understanding of the vendor’s wants and needs.

Keeping this strong contact throughout the process will also help you understand how the agent works and how they handle offers and counteroffers. Is their process timely? Or do they like to consult all parties and gather more information before going back to the vendor?

3. IDENTIFY SOME POTENTIAL FLAWS AND WEAKNESSES

It is always important to have a reason for your offer. You should use these weaknesses to your advantage when negotiating. It will show the agent that even though you are interested in the property, you have identified issues that should make the price discounted.

4. TRY AND UNDERSTAND THE VENDOR

Why are they selling? Are they time-restricted? Do they absolutely HAVE to sell the property? All of these factors have the ability to affect your offer. It will also help you formulate your offer to ensure it is desirable enough to take.

5. DON’T GET TOO GREEDY

The final deal has to be win/win for all parties involved. It is important to ensure you aren’t getting to carried away and you start pushing the boundaries too much. You don’t want to have any bad blood or negative feelings towards to agent or vice versa. Try and find a good common ground offer that is ideal for both you and the vendor.

OTHER HANDY TIPS

• Make a clear offer: Be succinct and give it time. Badgering the agent and trying to speed up the process can only hinder your chances in securing the property.
• Talk up your interest in another property: Don’t put all your eggs in one basket and bank on securing the first property you negotiate on. By talking about another property you have your sights set it you can show the agent that you aren’t entirely emotional and that you can move on the next at any point in time. This will, in turn, make the agent work harder to get your offer to come together. No agent wants to lose serious buyers.
• Don’t dive in too quickly: Don’t head straight into negotiation with your best offer. Work your way up, every vendor will expect some type of negotiation.
• Don’t forget about the market: Assess the general real estate market in your area and how it is performing before making your offer.
• In early negotiation, make an offer via EOI: Making an offer via expression of interest or email is non-legally binding and will ensure that you are not committed to following through with the sale (especially early on).