Own the Negotiation with Real Estate Agent’s
How to negotiate with a real estate agent to buy your next house.
After finally agreeing with your family members to purchase a property, your mortgage broker (after a week) final gives you the good news you have conditional approval, conveyancers have reviewed the contract, property searches and inspections completed. You’re ready to put in your offer. then you get your finances sorted and conditional approval. As soon as you finish your sentence the real estate agent tells you thet the vendor won’t accept that….as you walk away feeling rejected you ask yourself, what just happened.
Negotiating the price of your next house purchase is a two way street. The only difference is, you know what you can and can’t afford. So how do you own the negotiation, and when I say Own, I’m referring to you control the players in the field. You may win, but you may also lose. What remains is that you considered all the variables and gave it your best chance of succeeding
Here are some tips on how you can own the negotiate with a real estate agent.
1. Always be upfront with the agent. Don’t “beat around the bush” let them know you want to buy the property. You don’t need to give reason - we love the neighborhood and location, it’s close to schools. You want the property, that’s all the agent needs to know.
2. Have your finances approved. This will indicate to the agent you are a serious player, and you will have more chance in securing the sale as opposed to someone that hasn’t yet received conditional approval from the bank.
3. Discuss the terms of the contract. Advise the agent the deposit can be paid as soon as the offer is accepted. An immediate transaction puts the onus on the vendor to make a decision. Is some cases , if they haven’t had serious offers from buyers the pressure is one to consider your bid. Also, the agent knows you’re not playing games and you’re expecting a decision to be made within your timeframe. Always remember that if your laying down the offer in the negotiation, its fair and reasonable for you to dictate the terms. Ask for a response within a fair time for a conversation to be had between the agent and vendor.
4. Be prepared to walk away. Don’t over-stretch yourself. If the vendor doesn’t accept your offer (and it’s your best offer) it’s time to look elsewhere. The flip side is that if the agent is a good one, they will be in contact with similar properties that suit your budget.
A buyer that considers these 4 tips will always be considered the first to negotiate with. This gives you the best chance in securing the property.
Other property experts will tell you to do your homework, research the market on what other properties in the area have sold for as part of how to negotiate with a real estate agent. Although its important, it shouldn’t influence your offer, and here’s why. If a property in the street sells for a $1m and the agent has told the vendor your property will sell for the same, that becomes the sale price. Well the last time I went around this merry-go-round, if there were no buyers would the property sell for $1m. If only one buyer comes along and puts an offer of $700k and the vendor has to sell….well let’s just say, If I was the vendor I know what I would do.
You are in the driver’s seat. It’s your money. There are 9m dwellings in Australia and approx. 450,000 are sold each year by real estate agents. Believe me when I say another house will come onto the market for you to consider and another real estate agent will expect you to negotiate. With each negotiation, the more experienced you become.