How to negotiate your deal
Negotiating doesn’t come naturally to a lot of people. It’s scary, daunting and intimidating. But with a bit of research and insider knowledge, you too can score a great deal using the tactics buyer’s agents use.
1. Track market information - While a certain type of property in a specific area should have a price tag commensurate with other houses of its type in an area, supply and demand will adversely affect the predictability of a sale price. Often I will deliberately source property in an area based on the buying advantage at the time
2. Have the market analysis - Agents will often tell the vendors an optimistic target in order to get the listing. In these cases, the agents then have to defend the offers they receive from buyers and entice the vendor to accept the market sentiment in relation to the real value of their property. Scientific analysis and supporting documentation might be bad news to a vendor who wanted a dream price, but this form of information is generally considered and often accepted by a vendor.
3. Knowing vendor’s plans & expectations - If you have this information, you can make an offer compelling to them, and with the focus on their ‘terms’ needs as opposed to their preferred price. For example, I recently negotiated a fabulous price on a property based on appealing to the vendor’s needs. She was going to auction that Saturday for a property she loved; so I staged the settlement date to either give her the 63 days required, or alternatively (at her request), to convert to 120 days should she be unlucky and miss out. This meant that she had flexibility with her own arrangements and could comfortably bid on the property she loved.
4. Offering unconditional - This is the strongest and most compelling of offers. The offer should be in writing and without conditions if you are keen to have the most favorable terms above all other competing buyers. Just be aware that in Victoria, the cooling off period lasts for three business days unless the offer is signed by a real estate agent themselves.
5. Deal with win-win condition - Incorporating clauses such as “use of campaign photos for advertising online for rent prior to settlement”, and “access prior to obtain tradesperson quotes” can be a huge advantage to the buyer and of little concern to the vendor. The time to do this is at the negotiation table, not afterwards.