Basic Property Negotiation

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It was a very solid 62% clearance rate across the weekend where the number of auctions that were reported was 695. Nearly 20% of these sold prior to auction and there are over 250 passed in and most will still be on the market. Next week there are 1200 gazetted auctions and, with a clearance rate staying around 60%, about 720 properties should sell leaving another 480 to be sold after by private treaty negotiation.

Auctions can have multiple bidders, be announced “ON THE MARKET” by the auctioneer, and then you know that the person with the best bidding technique or most money wins. This is the rarest of occurrences. Only about one in ten sales in Melbourne end up as bidder vs bidder in an auction that is “ON THE MARKET”. All the rest are going to be a one on one negotiation with the agent. There are private treaty negotiations, there are negotiations prior to auction and there are negotiations after a pass in at auction.

If you are negotiating on your own behalf then you are one step behind the vendor already. There is a notable saying amongst experienced negotiators: “Never allow the salesman direct access to the decision maker”. Have you ever noticed the fact you don’t get to talk directly to the vendor, only his agent. There is another saying amongst solicitors that is worthy of note here: “A solicitor that represents themselves has a fool for a client.”

If you are negotiating for a property worth hundreds of thousands of dollars or millions of dollars the outcome will be vastly different if you have an experienced negotiator acting for you.

If you are considering a purchase of a property in the coming weeks and you have found your dream home, give our office a call and we can have a no obligation chat. The fee paid to a negotiator is usually insignificant in comparison to what they can save you in a negotiation.

Ian James
JPP Buyer Advocates

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About the author

Ian has been operating his own businesses for more than 25 years. During this time the self taught lessons of building the business, dealing with staff, suppliers, clients and economic woes have been invaluable. Ian is a fully licensed Real estate Agent, a member of the REIV and registered with the Business Licensing Authority.

Buying property is not just sticking up your hand and outbidding your rival. It is an emotional, fiscal and psychological decision that needs to be planned and well executed. Ian is usually involved in over three hundred property negotiations per year; ranging from the $250,000 first unit purchase for a young couple to multiple million dollar residential developments. Ian's business background and endless numbers of negotiations make him one of the industry's leading negotiators.

Ian is married with two adult children, living in Patterson Lakes. He is a keen fisherman when weather and business allows the time.