Four great negotiating tactics when buying a property

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When buying a property most people are not very experienced with buying strategy. You could call it bargaining. We understand that the negotiation phase of property acquisition can be a difficult task for people. While we recommend using a buyer advocate with experience in strategic buying, here are some tips you can use to get an edge while negotiating.

And that’s understandable because in our culture when we go shopping, we don’t normally try to discount the price or get an adjustment.

Shop owners set prices and we dutifully accept them. If shoppers always tried to negotiate a lower price, it would annoy the hell out of small retailers in particular, who are trying to make ends meet.

But from a sellers’ ownership point of view, the marketplace is full of price adjustment, going up or down. And retailers are thinking about it all the time.

Whether to set prices higher or lower. It’s common to see a supposedly marked down item in a store on ‘a special sale price’, but you, the shopper, may have spotted the same price on that item many months earlier. So is it a genuine price mark down, or just a strategy to get a sale?

On holidays in Asia you’re often surrounded by haggling. People expect it, market stall owners follow you out of their shop, wanting you to haggle more. It should remind us that it’s a shopping skill we all used to have.

But when buying a property worth hundreds of thousands of dollars it’s naturally a different ball game, so you should be prepared to negotiate.

Here are some tips on how to get an edge, gathered from experienced property buyers:

1. Look for a deal sweetener

When buying a property, if possible try to find out as much as you can about the circumstances of the sale and what the vendor really wants. It may be a short term settlement, because the owner has already bought elsewhere. Or the owner may be involved in a divorce, with pressure on to move the process quickly. Or they may be an ex-pat, who has been posted overseas, or going back to their home country.

Finding out more about the seller could reveal something that helps you to make a ‘win win’ proposition to them.

2. When cash is king

It sounds old school but it can work when buying a property. When haggling over the price, you can introduce a sudden cash offer. To do this you will need to have your finances completely sorted with easy access to funds, before laying the cards on the table.
This means you can pay a deposit on the spot. This is a traditional killer tactic when making a deal.

3. Go early, go hard

If it’s in a heated, competitive market, a bargaining strategy is less likely to work. You could risk losing out by making an offer that’s too low ball. It could just waste time and give a rival buyer time to swoop.

If you have done your homework and are sure you know the property’s market value, some experienced Property Buyers recommend that you make your first offer your biggest.

When buying a property, a ‘knockout’ blow can impress a vendor and net a sale, before other competitors have time to catch up.

4. Keep your budget to yourself

Don’t tell the seller’s agent too much. In card playing terms don’t show your whole hand and keep your cards close to your chest. Don’t tell them your exact evaluation of the property.

Don’t reveal your budget when buying a property!

In this strategic situation they would like to know as much about you as possible, especially how deep your pockets are.

Don’t let them pigeon-hole you, or keep you on tenterhooks, while they concentrate on getting a higher offer.

When buying a property each property sale has its own circumstances, but if you know some of the best negotiating strategies, the opportunity may arise to use one. It can put you in a stronger position and help get you the result you want.

Buyer Marketing – Melbourne’s most experienced buyer advocates are your winning edge in property buying.

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   Gail Lobo 
 
 
 
  Peter's knowledge and expertise were invaluable when purchasing my first home. He guided me through every step and kept me informed regularly, which made the process easier and less stressful. I felt supported and in good hands throughout. Everything fell into place within a few weeks, quicker than expected! I would highly recommend Peter and his services.
  
 
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   Charlotte St John 
 
 
 
  Peter Fox is an outstanding buyer’s advocate. I am so glad that I hired him. It was incredibly helpful to have someone so experienced in real estate navigate the ins and outs of buying a home on my behalf. He achieved the result I was looking for in record speed, and took the stress out of everything. Thank you Peter.
  
 
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   Colby Hart 
 
 
 
  Peter was a fantastic buyers advocate - identified and negotiated our dream home for us extremely quickly. Couldn't recommend higher.
  
 
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   Beatrix Neville 
 
 
 
  I had an excellent experience working with Peter in purchasing my first home. Peter has a calm demeanour and is a clear communicator - never once did I feel stressed, pressured or uncertain of where I was in the journey or what the next steps would be. Peter understood me and my brief, selected quality properties to inspect and took me through off-market properties to compare. Within 3 weeks of contracting Peter we secured the perfect place. I am absolutely thrilled with my purchase, and believe I would have missed out on the property without Peter's rapport and expertise in communicating with Real Estate, and then guidance once the negotiation process started. Peter made the process of finding a property so fun and exciting that I was almost sad when it was over! Thanks Peter!
  
 
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   Jean-Pierre Eid 
 
 
 
  We engaged Peter Fox for bidding and negotiating, hands down one of the best decisions we ever made. He was clear and comforting ahead of auction and on the day witnessing Peter go to work was awe inspiring. Having done his due diligence beforehand, he was quick to assess a sizable field of interested parties and surgically execute a winning strategy securing for us our dream home. All that aside Peter was empathetic and understood our worries and motivations while also demonstrating strong discipline and an ethical approach throughout. Thank you Peter Fox
  
 
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   Jessica Fagioli 
 
 
 
  Peter is nothing short of a real estate king. I engaged Peter because I was looking at buying a specific house in a very competitive area, and which was being sold under a complex set of circumstances. Before even formally engaging him, Peter had gone to see the house in question,  had spoken to the real estate agent, and had a good idea of what we were working with. From that moment on, I knew I was in safe hands. Peter was always available to alleviate any concerns and answer any questions,  and when he wasn’t in a position to know the answers, he knew exactly how to get them in a prompt manner. Peter established a strong rapport with both the vendor’s solicitor (which ensured my lawyers and I were comfortable with the state of affairs before auction day) and the selling agent (which was critical to my ultimate success at auction). I cannot even begin to describe Peter’s mastery on auction day: there is no way I would’ve succeeded had he not been there. I cannot recommend Peter highly enough. Infinite thanks to you, Peter!
  
 
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   patty goodman 
 
 
 
  I purchased an investment property through Peter and he made the process so easy and stress free. I saved so much time being able to work while he inspected multiple property’s and negotiated a good deal for the right one. Highly recommend this bloke!
  
 
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   Peter Mallen 
 
 
 
  Peter Fox from Buyer Marketing helped us buy a property in Vermont South recently. We have been looking to downsize for some time and, honestly, are fairly fussy with our criteria. So when a house came along which ticked many of the boxes for us, we enlisted Peter's help to negotiate with the agent and to get the deal across the line. Peter was friendly, approachable and professional throughout. His knowledge and experience of the real estate market and the buying side in particular meant that we could leave the conversations and timing of offers to Peter. We were able to secure the property we wanted at a price that met our budget and met our criteria. So we are very grateful for Peter's advice, assistance and good communication throughout the process.
  
 
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   Peter Villinger 
 
 
 
  With Buyer Marketing’s Peter Fox I was in good hands from the beginning. An initial meeting with Peter set me on the path to a successful purchase of a property. This was an informal chat whereby he was able to understand precisely what my requirements were.From there the process was clear and efficient, Peter explaining not only what he would do but also how and why those were his strategies.Regular updates and the knowledge that he was up for a chat anytime was most reassuring. Peter V
  
 
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   James Ireland 
 
 
 
  Peter provided us with deep knowledge of the local areas, the real estate market and contacts within the industry that allowed us to quickly purchase a property that suited us perfectly. He gave us calm and thoughtful recommendations and was there for us at every step. He gave us insights we would not have otherwise known, and made the whole process simple. He conducted all the negotiations on our behalf and we came away with the perfect property at the right price. Could not recommend his services higher.
  
 
  
  
 
 
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Four great negotiating tactics when buying a property

1. Look for a deal sweetener

2. When cash is king

3. Go early, go hard

4. Keep your budget to yourself

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