When you’re negotiating to buy a property, the fact that needs to be foremost in your mind is that the real estate agent is employed by the vendor - your opponent. AND the amount of money that the agent makes from a deal is directly proportionate to the amount of money they can make you pay.
So while we love agents, we need to respect them as our opponent.
That’s our number one tip! Here’s a few more…
- Research - know your market, know the history of the property you’re buying, know of any plans for development in the area. Find out about recent sales in the area and make sure you’re comparing apples with apples when you’re coming up with a price that you’re willing to pay for the property you’re buying.
- Budget - know what you’re willing to pay and when you’ll walk away. And make sure you do walk away when the time is right. Sometimes we can get caught up in the frenzy of buying and the game of the negotiation then we end up over-paying - don’t let that be you!
- Negotiate realistically and respectfully - once you’ve made your opening offer and the vendor comes back with a counter offer, make your next offer realistic. Going back and forth with bids of $1,000 or $2,000 will just get you stuck in a “Dutch Auction”, the auction you have when you’re not having an auction - and no one wants that. Your counter offer needs to let the vendor and agent know that you’re serious rather than a time waster.
- Be confident and assertive - without being cocky. If you’re not a confident negotiator, find someone who is and let them do the negotiating for you. You could even hire a buyers agent to assist you.
- Finally - make sure your finances are ready to go. Imagine doing all that work and then having to scramble to get your money in order. We can arrange a pre-approval so that it’s ready to go the moment you are.
Good luck in your negotiations. If there’s anything we can help with, please be in touch.