The market is changing again. The upper end over $2M is remaining skittish. Good properties will sell but the competition is much less than it has been for the past twelve months. It is truly at negotiators market at this level. This is not a market for the feint hearted. However, it is not a market to say “no” to everything the vendor offers. The trick with negotiation is to work out when to say “yes”
Negotiation in its purest form is RISK vs REWARD. Knowing when to make an offer and when to do nothing can mean the difference between securing the property for $1.95M and paying over $2M. It can also be the difference between securing the property and missing out.
Before making any offers at all, you need to set your game plan. This is more about setting goals and objectives in certain time frames rather than a dollar amount. We may decide that the asking price is well above what we are happy to pay, however we still like the property enough to purchase it. This means we need to take a long term, higher risk strategy, rather than continually increasing our offer in order to meet the expectations of the vendor. Unfortunately this can mean missing out to someone who offers only slightly more than you do.
Alternatively, you may be happy to pay a price that the vendor is happy with but the property is going to auction. You need to use a strategy that will secure the property quickly, rather than trying to save money.
You need to take into account the level of experience the selling agent has, the time the property has been on the market, the market itself and even the method of sale the vendor is using. Weighing all these factors will assist you to making good decisions.
Negotiation directly with experienced real estate agents is not for everyone, however a well thought out plan will give you a much better chance of success.
If you need help purchasing a property please feel free to contact us.
Ian James