Secret Negotiator's Tips from a Buyer's Agent

Nila Sweeney wrote a great article for realestate.com.au, that all buyers can learn from.

Negotiate like a pro

If you are buying a house it is important to understand the process and how you can negotiate the best price possible. Below are excerpts from an article written by Nila Sweeney on realestate.com.au that will give you insider tips from buying experts.

1. Study comparable sales

If you go to an agent with comparable sales on hand, a legally reviewed contract and an understanding of demand in the area for this particular type of property, you should be in a position to talk honestly with the agent which recent past sales are reliable, comparable sales.

2. Cultivate goodwill with the agent

It’s true that they’re working for the vendor, but don’t underestimate the power of being genuinely nice towards the selling agent. Treating the agent politely might just get you the crucial information about the vendor’s situation and their expectations.

3. Establish the agent’s rules before negotiating

To help strengthen your position, you also need to understand how the agent will handle offers and counter offers. Find out if they will call the vendor immediately or whether they sign up the offer or facilitate a counter-offer. Will they call other buyers before selling it? And if so, how will they deal with competing buyers?

4. Identify some potential weaknesses

Always have at least two negotiation points up your sleeve. You can use it to show the agent that while you’re interested in the property, you know that there are issues within the property that should make the price be discounted as a result.

5. Understand the vendor’s position

Find out what the vendor’s motivation is for selling. Are they time-restricted and have to sell, or not? The more you understand their motivation, the more you understand what to offer.

6. Make sure your offer is clear

Sometimes just being succinct and leaving it be is the best option. Following up too soon, asking where the offer is at, and asking what the next steps are a hint to the agent that you have more money up your sleeve.

7. Tell the agent about your Plan B 

By this stage, you should have built up a rapport and a bit of trust, and equally, you know your values, are actively looking to buy and should have a Plan B property you are prepared to pursue if this one doesn’t go your way.

8. Don’t be too greedy

Ultimately, the deal has to be a win/win for all parties. Without the agent’s support, the deal can topple over.

Read the full article here.

http://www.realestate.com.au/advice/secret-negotiating-tips-buyers-agent/