that moment, not only are you nervous but you are probably thinking
what happens next….Trick or treat ? Here are some tips….to settle your
the amount of property on the market increases significantly during
Spring in the lead up before Christmas so too does the number of
properties that are passed in. Be prepared !
it is teeming with rain DO NOT follow the agent inside. This is akin to
being put in isolation. Even though you have the exclusive rights to
negotiate with the vendor, it is critical you stand in a position
outside where you can assess whether there is any competition or just
family friends who are pretending to be buyers. The impact that
perceived pressure can have ( not knowing who your competition is or the
implied prospect of competition) is a powerful negotiation tool that
agents are only too happy to use against you. That aside, standing your
ground displays strong body language even though you might be shaking at
Now, let the games begin…..The 1
step is to ascertain the reserve price. More often than not the reserve
is not the price at which the vendor will ultimately sign the contract
but rather the vendor’s authorised or asking price which is usually
higher to allow for the negotiations. A good question might be “what is
the lowest price the vendor will sell for”. It is at this point that you
will need to decide what your strategy is. This should be based on your
own research as to what you estimate the property is worth under low
competition and at the upper end when there is intense competition. Just
because the property has been passed in does not mean that this is
market price, it is simply a price point for further negotiation. The
market value is what you and hopefully the vendor have assessed it to be
based on comparable sales evidence and in reality, they should be the same. The key is to work within the price range you determined and not waiver from it.
my experience, it is almost impossible to conclude a sale unless both
parties are willing to negotiate except when the vendor must sell. The
extent of any negotiations will depend very much at which end of the
price range the property is passed in for. For example, if the price is
at the lower end of your range you have more flexibility but never
forget that your aim is to minimise the outcome. Clearly, knowing if
there is any competition (in waiting) will effect how flexible you are.
Don’t be frightened to say things like “this is already at the upper end
of what I think the property is worth” even if that is not the case. If
there are no other buyers in sight……everybody has left except yourself,
then minimise the amount you are willing to counter offer. DON’T fall
in to the trap of making the same counter increments as the vendor.
Often the agent will say things like “would you meet the vendor
halfway”. Consider your position, always deliberate and minimise the
just to totally challenge you, consider this…..It is a fact that 90% of
all communication is conveyed through eye contact and your body language which puts buyers at a distinct disadvantage compared to the vendor who has an agent working by their side.
Kenny Rogers once wrote and sang “You got to know when to hold ‘em,
know when to fold ‘em, Know when to walk away and know when to run”. Do
you have the poker face ?
you would like assistance in purchasing your next property please do
not hesitate to call Rob Millar on 03 9853 5599 or 0414 330 179.
If interested in learning more about this update please !