November 22, 2016
Quite a few of my clients are still hoping to buy before the Christmas and holiday season slow-down. The market is still very active, with the past weekend’s auction clearance rate of 79% in Victoria – that’s 795 properties sold at auction.
Here are some tips on how to negotiate your property purchase like a professional, inspired by a recent realestate.com article.
- Engage a professional. Buyer’s advocates and property research firms assist buyers to identify the best property type for the buyer’s needs and then secure the target property. They know their market, know the agents and often are alerted to properties before they hit the agents marketing. They are property negotiation experts. If all goes to plan, their fee will be more than covered by the value you gain and time and money you save.
- Know your market. This will help you determine the market value you are willing to pay for your purchase. Become an expert on the streets and comparable sales in your target area. Demonstrating your market knowledge also helps to have a more informed and serious dialogue with agents.
- Understand the vendor’s position. Understand all the selling factors which are important to the vendor, not just the price. Why are they selling? Are they time-motivated? Factor these aspects into your offer.
- Connect with the agent. Develop a good relationship with agents – they can help you in many ways.
- Understand the agent’s selling rules. For example, if you submit a bid, will it go straight to the vendor or will the agent approach other potential bidders first? This understanding will influence how, when and what you put forward as your opening offer.
- Identify potential weaknesses of the property. Use these to explain your offer, particularly if it’s below expectation.
- Tell the agent about your “plan B’. If the agent understands you are objective about your purchase and have a real alternative, they will feel more motivated to keep your offer moving quickly to conclusion, one way or the other.
- Look for the win-win.