How to get the price you want

By the resi financial blog team, 25 September 2014

how to get the price you want

Just because you’ve found your dream property doesn’t mean you should just agree to the price the vendor wants. Here are five tips on getting the price you want to pay.

1. Understand how agents operate
While agents are employed on behalf of a vendor, the bottom line is that what they really want is a sale. By letting the agent know you are ready, willing and able to strike a deal, the convenience of dealing with you may be more attractive than putting in extra hours to achieve a higher price. An extra $10,000 or $20,000 may only be worth $200 to $300 in commission to the agent and if a lot of work is needed to get that higher figure, they may decide to take your price. Just make sure you really do have everything in place for a quick exchange.

2. Know the market
Your dream property might be listed at say $500,000, but if, because of your research you know that a similar property was sold in the same area for $50,000 less several months ago, use this knowledge in your negotiations with agents. It not only makes you come across as professional, but also as a serious buyer.

3. Sweeten the deal
If you offer a lower price, be prepared to also offer something that will sweeten the deal for the vendor. For example, say you’re prepared to buy without a cooling-off period. While your initial price may not be accepted, it will show that you’re a serious buyer and they may be prepared to lower their price more than expected.

4. Be humble
Agents are only human and nobody likes dealing with someone who is arrogant and demanding. Making strident statements such as “this is all I’m prepared to pay, take it or leave it” or “this is my final offer” puts people offside. Be polite and show a willingness to negotiate. Also, let the agent know you are not emotionally attached to the property – if you appear desperate you will have lost any negotiating power.

5. Ask insightful questions
Agents are unlikely to give out any information that will put the buyer in a better negotiating position, but by asking the right questions you can find out just how much leverage you have. Questions such as who set the price: the vendor or the agent, can help determine how willing the agent might be to take a lower price to their client – especially if you’ve done your research into similar properties in the area. Knowing how long the property has been on the market is also useful.

 

Categories: ;:selling, property, property advice