At the moment over 90% property transactions you are likely to deal with real estate agent, Therefore, it is worth taking time to understand what makes them tick. Moreover, they will ask numerous questions to find out your needs, however, if you can understand your agent it is an added advantage for you.
Rule number one, a real estate agent represents the seller, not the buyer. Agent are paid a commission on the sale of the property, so it’s not just their responsibility to ensure the vendor gets the highest possible price, it’s in their interest. Furthermore, this will help the agent attract more vendors under their listings too.
To be conservative, you will be far better positioned to negotiate effectively with the agent, and armed with a few tips and strategies you will maximise your chances of haggling the price down closer to a level that suits your budget.
- Ready to pay: A conditional approved loan and a deposit at the ready will escalate you above your competitors, who still has not organise their finance. Experienced agents have an eye for a serious buyer and you will be in a stronger bargaining position with all your finance in order.
- Begin with less: As long the first offer is low yet not ridiculous, this will be an eye opening to the agent. This will express vendor and the agent that you are serious about buying the property. Also make sure you leave some space to move in further during the negotiation process.
- Be specified: During the bidding process make sure you highlight any things to be improved in order to get the price down. Attention to detail during the inspection.
- Make vendor and agent nervous: Use your financial position to gain leverage over the competition by offering to move quickly. Agents and vendors can get nervous when the property has been in the market for a while. A buyer who is very serious and ready to act and settle fast may see an extra 5% or 10% tumble off the price.
- Buyers advocates: IF you want a seamless process in order to avoid above mentioned point, the other alternate is to find out a buyers advocate to represent you. They do all the hard yakka for you at certain price. It can be either a flat fee or percentage of the property price and it depends on the level of assistance they provide.