Not only negotiators can buy investment property at preferential prices, just learn some skills from professionals. So, how does the buyer's agent negotiate the price in the transaction?
Cate Bakos, founder of Cate Bakos Property, says first of all, you must learn more about the actual needs of sellers.
"some sellers only care about the price, but most sellers do not. They will have other demands or expectations. It is the best policy to dig into these requirements or expectations and make quotations accordingly. This is typically done only by an agent, which means that buyers must have a good relationship of mutual trust with the agent, "Bakos said. Buyers also need to know how sellers expect to sell. Bakos points out that some sellers like auctions, in which case pre-auction offers are futile and can only adversely affect negotiations before auction day.
Miriam Sandkuhler, founder of Property Maven, a buyer's agency, said it was equally important to have a better understanding of the market. "buyers must be familiar with the area where they want to buy a home and know at least five recent sales of similar properties, so that they can rule out unusual situations, such as the extraordinary high prices that come out of the mood," Sandkuhler said.
How to negotiate like an expert
Here are some tips from industry experts to help Australian property buyers gain an edge in the negotiation process.
1. Study the sales of similar properties
Bakos said it was prepared in advance to indicate that the buyer was serious and that it was possible to obtain more information from the seller's agent.
"if buyers meet with agents to provide sales records of similar properties and legally reviewed contracts, and have an understanding of the needs of this type of property in the region, then there is an opportunity to be honest with the agent," he said. Consult recent sales records which are more reliable and comparable. In general, if the buyer has done preparatory work, then the agent will be more open to express their true views. " She said.
The prices of other local properties are valuable information.
2. Establish friendly relations with agents
Although the seller's agent works for the seller, the role they bring to them in a sincere and friendly manner should not be underestimated. If they are treated with courtesy, the buyer may receive some vital information, such as the seller's status quo and its expectations.
For example, they may tell sellers what areas they focus on in the course of the transaction, such as the pace of the transaction, the way they communicate, the terms of expectation, and so on, to make it easier for both parties to complete the transaction. "the least important thing in conversation is price," Bakos said.
3. Understand how the agent works before negotiating an offe
In order to increase their advantages, buyers should understand how agents deal with quotations and counteroffers.
The buyer needs to know whether the agent will call the seller immediately, whether he can accept the offer on his own, or help with the counter-offer? Do you contact other buyers before sale? If you contact other buyers, what will the agent do to competing buyers?
"buyers should ensure that they are treated fairly in the negotiation process, that they will not be hit in the face, rejected or worse off when they show their intention," Bakos said. "if the agency raises the price maliciously or makes a difference between the buyers," he said.
4. Identify potential issu
Sandkuhler pointed out that buyers have to keep at least two bottom cards when negotiating a price, which can be used to make it clear to agents that although they are interested in the property, they know there are some problems with it, so house prices should be discounted.
Understanding the seller's needs and bargaining space is a good strategy.
5. Understand the seller's situation
Understand the seller's motives for selling property. Are they eager to sell?
The more you understand the motivation of the seller, the more you know how to quote, according to Sandkuhler. "it is sometimes suggested that early delivery could save thousands of Australian dollars in a deal, and payment of a deposit on the same day could also lead to a deal. That's why buyers need to get as much information as possible to make the best offer, "she said."
6. Make sure the Quote is clea
Bakos points out that sometimes it is best for buyers to let things go after they submit a clear offer. Follow-up is too tight and asking for an offer or next step is to suggest to the agent that you can afford a higher price.
"do not say that this is the highest or final offer, unless that is the case. If the buyer tells the agent that this is the final offer, then it is also fair to sell the property to other buyers at a higher price, "Bakos said.
Buyers should ensure that agents know they have other options.
7. Tell the agent about his alternative plan
By this stage, the buyer should have established a more harmonious mutual trust relationship with the agent, at the same time clear their own purchase intentions and requirements, and prepare alternative real estate in case the current purchase progress is not smooth.
If agents know that the buyer is not completely emotional and are willing to start thinking about another property, it will force them to try to help the buyer close the deal.
"No agent wants to lose the main buyer, and nothing is worse than telling the seller to make a reasonable offer now to opt out," Bakos said.
8. Don't be too greedy.
Real estate trading should be a win-win situation for all. Without the support of the agent, it would be impossible to conclude a deal. Without the support of the seller, even if the transaction continues, the seller is likely to show negative sentiment towards the buyer during delivery and handover.
Only by establishing friendly relations with sellers and agents can all achieve win-win results.
"the bargain should not go too far, otherwise it will cause discontent for the seller," Bakos warned. "A seller's understanding may be required at the time of delivery due to unexpected circumstances, such as bank delays and the loss of cheques may lead to missed delivery dates, and the seller's attitude towards this is very different, whether it is understanding or angry, Because buyers could face thousands of Australian dollars in fines, not to mention dirty homes and unmanaged gardens. "
