Research the Area
Attend open inspections to get a basic idea of property values. There can be a big difference between the asking price and the selling price.
Attend a Few Auctions
(Get an idea of how Auctions work, go along and watch a few) See how people bid and watch the agent and auctioneer.
Beware of Underquoting
(Underquoting is illegal, it is quoting a price by an agent less than what the owner would be happy to accept, unfortunately an agent will quote between 10-20% less of the likely selling price of a property being sold by Auction).
Organise Finance Pre – Approval
(speak to several financiers to get the best rate, 1% can make a massive difference to your repayments, Don’ hesitate in asking what’s the best rate that is available today. Remember to ask if there are any fees.
Obtain Quotes for a Solicitor or Conveyancer
(He or she will need them to review the Contract of Sale and request any amendments to protect your interests. If you need help sourcing a competent solicitor, please leave a comment below or reach out to us through our contact page.
Consider Engaging a Buyer’s Agent
Speak to Buyers Agents with a minimum of 10 years’ experience, there are many that have little or no experience, the seller is represented so should you). The cheapest agent will cost you the most amount of money. Beware of cheap agents; you are probably a better negotiator than they are.
Beware of Underquoting
(Underquoting is illegal, it is quoting a price by an agent less than what the owner would be happy to accept, unfortunately an agent will quote between 10-20% less of the likely selling price of a property being sold by Auction).
Offers from – Price Baiting
(Is another form of underquoting, it is illegal too. It is a method in which an agent offers a property to bait buyers into thinking they can buy it at a lower price, with the price generally $20,000 to $50,000 less than what the owner will accept.
The Inspection
(Be careful not to show too much emotion. If you love the property, don’t tell the agent; you’ll end up paying more. Show no emotion.
Submitting an Offer
(You can always increase your offer, so start low; rarely can you decrease your offer.
Due Diligence
(Due diligence is paramount. There are inspections to consider, such as pest, building, and strata inspections. It is recommended that you also speak with the Council to determine whether there are any known developments or infrastructure projects that could significantly affect the property’s value.
Paul Mulligan is the Principal Buyers Agent at MULLIGAN Buyers Agents, Sydney. As one of only two buyer’s agents in Australia to complete Negotiation Mastery at Harvard Business School, Paul combines advanced negotiation strategies with years of market experience to secure the best outcomes for property buyers.
Passionate about helping clients avoid costly mistakes, Paul offers expert guidance throughout the buying process from search to settlement.
