Real Estate Negotiations

Real Estate Buyers Agent, Paul Mulligan says it’s not too difficult to beat the average real estate agent at property negotiations.  The average real estate agent has done no more than the legal requirements of becoming an agent.  This can be a course from 2 days to 6 weeks!  It is insane! 

The current training through the mainstream real estate space is very basic and the minimum requirements do not cover topics such as ethics and high-level negotiation.

Just this week I emailed a Sydney Real Estate Agent asking for a price guide on a property they were selling.  All I asked was for the guide.  To no surprise I got a reply saying the price guide is xyz and we have a firm offer on the property at abc.  You might think what’s wrong with that……Without asking any questions I was in the position of power.  I knew the lowest amount the owner would accept.  When you’re buying property, agent’s like this are great for a buyer but they can cost their client $10,000’s in dollars.  Imagine all the properties that have been undersold.

Today I am going to share with you five tips on how to get a property cheaper than what you are prepared to pay!

Tip One – Be friendly and transparent I don’t know anyone who has been a successful negotiator that is nasty.  It costs nothing to be polite and if the agent likes you it’s going to be hard for them to say no to you.

Tip Two – Do not give away your secrets.  Your secrets are the price you are prepared to pay for the property, showing too much emotion will destroy your negotiations.  Don’t show any emotion when viewing a property.

Tip Three – I like the property but I don’t have to have it!  Don’t position yourself as desperate.  Desperate people pay too much for a property, they give all their secrets away.  Keep the attitude of “I like the property, but I don’t have to have it” mentality. 

Tip Four – Ask the agent why the owner is selling.  You will be very surprised of what the agent may say.  Have there been any offers? How much will the owner accept.  I guarantee you that asking all these questions you will be in a far better position of how to start the negotiations, it is likely to be far less that you anticipated paying.

Embrace the opportunity to use a negative report to re-negotiate the price.

Tip Five – If your offer isn’t accepted and you are happy to increase your offer walk away.  You can always come back.  The agent may come back with a price the owner will accept, if he/she does do not respond immediately.  Use timing and delay the process.  Timing is a key factor of any form of negotiations.

Important information

The contents of this article do not constitute legal, financial or commercial advice or a recommendation of any services or products.  You should consider obtaining independent advice from a qualified person before making any decisions.

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