Selling or buying a property represents one of the biggest financial transactions most people will undertake, and achieving the right price can be one of the hardest and most stressful things to do. First National Real Estate Bribie Island principal, Lyn says the number one tip when negotiating is to do it quickly.
“Whether you are buying or selling a property, a protracted, drawn out negotiation process can cost thousands in the wash up,” Lyn said.
“The buyer can get frustrated and decide to seek greener pastures elsewhere, or the seller may decide to go with a better offer that comes along.
“Either way, it is in no-one’s interest to draw out negotiations. Everyone ends up a winner if agreement is reached in a speedy fashion.”
For buyers, a successful negotiation starts with an offer in writing first.
“Written offers are a sign of a stronger commitment by the purchaser to the property, and are harder for the vendor to disregard,” Lyn said.
“This commitment, evidenced by an actual contract, may be more attractive to the seller than other more lucrative offers.”
One of the most effective negotiation tools for sellers is the services of an experienced and reputable real estate agent who has strong local industry knowledge.
“The selected agent needs to be capable, have strong negotiation skills, but importantly be someone you are comfortable with.”
“Look at how many sales they have made and what sort of skills they possess to maximise the price of your property.”
Negotiation Tips for Buyers
- Make sure you do your homework in advance of any offer
- Establish why the owners are selling to determine their priorities
- Make offers as realistic as possible – there is not always a lot of room for movement on price so unrealistic offers may only discredit your intentions
- When offering less than the asking price, make contract conditions attractive to the seller (eg agree to seller’s settlement time, have finance approval in place if possible, consider releasing the deposit etc)
- Be prepared to pay a little bit more for a good property in a good area
- Put offers in writing so the seller can see your serious intent
- Be clear on any timeframes around your offer eg set a timeline for the owner to provide an answer, if they are indecisive
- A good deposit, can help tip the scales in your favour
Negotiation Tips for Sellers:
- Be realistic – set your price based on fact, rather than emotion
- Request a written offer to see how serious the buyer is
- Don’t waste time acting on the offer – a bird in the hand is worth two in the bush – don’t run the risk of losing the buyer, it may take a while to find another one
- Be willing to compromise, particularly on small matters and consider ways to give them a sense of value which may lead to a better sale price for you
- Look at all the conditions of the buyer’s offer, not just the price
- Seek advice from those qualified to give it, rather than from family and friends.
- Employ the services of an experienced real estate agent who is capable of negotiating a good deal for you