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Ben Kingsley Blog post by Ben Kingsley

Negotiation Tactics in a ‘Sellers’ Market – Part Two

3. Establish recent sales to justify your offer

Recent sales of comparative properties can help in getting the estate agent to help support your price offer, but you must compare apples with apples, don’t compare weatherboard with Brick or vastly different land size blocks etc.

 

4.  Start with a long term settlement

When you put your first offer forward, but accommodate any offer by the vendor for earlier settlement terms if the price is right.  In tough buying markets, being flexible to their needs, just might win you the property.

 

5.  Offer the least amount of conditions possible

In a tight market, the buyer offering the same price as another buyer might win the property because they didn’t attached any conditions with their offer, whereas other buyers may have, which the vendor didn’t want to agree to or found it easier to accept the other offer.  (Note: you better be sure everything is in order on the property and with your finances if you are going down this track)

 

6.  Try to buy prior to Auction:

Taking a property off the market before the advertised auction day in a heated market is not easy, but buying it for the right value, can be even harder during a competitive auction.  First, most bidders are thinking it’s going to auction, so they may not be ready or prepared to put a pre-auction offer on the table.  Secondly, if your offer is attractive, the vendor just might be interested in moving on themselves, rather than having another 6 or more open houses.

You may also be interested in a couple of properties at the same time, so this may be a necessary action to ensure you secure at least one of properties through your negotiations.  (Don’t be afraid to tell the agent know you are negotiating  on both properties, as under their license they must present all reasonable offers to the vendor for this consideration, and if the agent is aware that you have another property in mind, they might support you securing this property if your offer is within their expectations).

(If you absolutely have to buy the property at auction, check out some of our Auction Tips that would give you the extra edge)

 

7.  Be as friendly and as likeable as possible with the agent

In seller markets, agents can pick and choose who they want to deal with.  If yu play hardball and other parties are friendlier, then the agent might not even return your calls after time, and then all of a sudden the property is sold before you have a chance to make a counter or improved offer.

You might let the agent know that you are thinking of selling your other property and if you are successful here, it could result in the agent getting another property to list and earn commission on.  (Whether you do actually decide to sell the other property is up to you. You might decide to keep it given the excellent investment returns you are getting from the property, but if you change your mind, that agent will be the first person you call—right!)

I hope these tactics help you into the market, they are only a few tactics used and there are plenty more out there being used every day by your competition, so realise you’re playing for keeps in this type of market.

If you continue to luck out, you can change your tack and look at other markets, where there is currently a buyers market or use a professional buyers agent to help you compete.

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