{"id":21605,"date":"2018-07-01T01:00:27","date_gmt":"2018-06-30T15:00:27","guid":{"rendered":"https:\/\/realestatetalk.com.au\/?p=21605"},"modified":"2018-07-01T01:00:27","modified_gmt":"2018-06-30T15:00:27","slug":"negotiate-like-a-pro-cate-bakos","status":"publish","type":"post","link":"https:\/\/channels.realty.com.au\/realtytalk\/negotiate-like-a-pro-cate-bakos\/","title":{"rendered":"Negotiate like a pro \u2013 Cate Bakos"},"content":{"rendered":"

The power of negotiation is what sets agents (both buyers and sellers agents) apart.\u00a0 The skills of negotiation are something we can all use in our everyday lives \u2013 not only when we are buying and selling real estate.\u00a0 Cate Bakos<\/strong> has some tips.<\/p>\n

Transcript:<\/strong><\/p>\n

Kevin:<\/strong>\u00a0 I want to talk about a subject now that\u2019s near and dear to my heart, and that is something that professionals in the real estate industry are practicing all the time, and that is the power of negotiation, your ability to negotiate. Don\u2019t always leave it up to your agent or your buyer\u2019s agent to do it. This is something that you, as a buyer and\/or a seller, need to understand and maybe practice a bit.<\/p>\n

Joining me to talk about this, someone who does this professionally, Cate Bakos, who is a buyer\u2019s agent out of Melbourne.<\/p>\n

Good day, Cate. How are you doing?<\/p>\n

Cate:<\/strong>\u00a0 Hi, Kevin. I\u2019m well, thanks.<\/p>\n

Kevin:<\/strong>\u00a0 Let\u2019s have a look at some of the less confrontational ways of negotiating if you have to do it hard. I\u2019ve asked Cate to put together a list for me. She\u2019s done that and given us four, which I want to talk to you about.<\/p>\n

The first one you say: blaming the cash flow requirement on the price offered, Cate.<\/p>\n

Cate:<\/strong>\u00a0 Yes, it can sometimes be a gentle way\u2026 Obviously, it\u2019s not adversarial. You can say to an agent that you\u2019d love to buy the property but the price tag that\u2019s on the property is not working for you because of the cash flow that you require.<\/p>\n

Particularly if you do feel the price is a bit too high, you can wind it back and demonstrate the going rental yield in the area for that kind of dwelling being a mismatch for this particular property.<\/p>\n

It\u2019s a really easy way of saying it\u2019s priced too high or the price tag is not going to work for me, and it takes the focus off arguing about the price. You can blame the yield, and that\u2019s an easy argument for an agent to have with a vendor without getting them off side.<\/p>\n

Kevin:<\/strong>\u00a0 Professional buyers and investors should be looking at it in that way anyway, as treating it like a business, Cate.<\/p>\n

Cate:<\/strong>\u00a0 They absolutely should. Sometimes if the price tag is too high and the yield just won\u2019t work, the property won\u2019t sell to an investor. They may get lucky and have a home-buyer who falls in love with the property, or if it\u2019s an investment type property in an area that\u2019s booming because of investment activity, that the vendor will eventually meet the market.<\/p>\n

Kevin:<\/strong>\u00a0 I love the next one you gave me: playing good cop\/bad cop with a partner. How often do you see this happening? Is there a stereotype of who\u2019s going to take the hard role?<\/p>\n

Cate:<\/strong>\u00a0 Yes, it happens all the time. Sometimes I use that when I\u2019m talking to an agent about a property and I\u2019m genuine about it. I\u2019ll often say \u201cLook, the husband is not so keen. He\u2019s just not all that interested. He\u2019s not saying no, but he\u2019s the one who we need to get across the line.<\/p>\n

\u201cThe wife is really keen. She\u2019s really happy with the price. But it\u2019s not going to happen. They\u2019re not going to agree to it, so what can you give me to go back to the husband and wife with so that he feels he\u2019s having a little bit of a win and she\u2019s not losing grasp on getting the property of her dreams.\u201d<\/p>\n

Kevin:<\/strong>\u00a0 Yes. And a couple on their own who may not have the benefit of having a buyer\u2019s agent can play the same\u2026 I was going to say \u201cgame,\u201d but it\u2019s not a game. Have the same rules.<\/p>\n

Cate:<\/strong>\u00a0 Yes, absolutely. Sometimes I\u2019ve seen it work really effectively when if it\u2019s the husband who\u2019s saying no, he might say to the agent, \u201cLook, I\u2019m just not there. My wife loves it, but you\u2019ll need to convince me. This is where I think value sits, for these reasons.\u201d<\/p>\n

Or she could go to the agent and say, \u201cWhat can you do to help me talk to my husband about where value really sits? How could we have this negotiation because I love the property but he\u2019s still saying he\u2019s not there at that level?\u201d<\/p>\n

Kevin:<\/strong>\u00a0 Yes, very good thoughts. Another one: dual offers with differing terms. Is this with the one set of buyers maybe offering up different alternatives?<\/p>\n

Cate:<\/strong>\u00a0 Absolutely. Yes, it\u2019s a little bit of a bluff, but you have to be prepared to go through with it if they do choose the option that you prefer they didn\u2019t. In other words, if you think that the vendor wants a fast sale, you could make a sharper offer on a 30-day settlement term, and then you could also offer a price tag that\u2019s closer to their asking price on something like a 120- or a 150-day term, hoping that they see that you\u2019re trying to make their figure, but you need time to do that and they will favor the shorter term and the negotiation will move in your favor.<\/p>\n

It often goes to plan, but if you find that the vendor is more fixated on price and can find a way to play this to your longer term, you might have a yes on a higher figure on a longer settlement, and if that doesn\u2019t suit you, you should never have put it forward.<\/p>\n

Kevin:<\/strong>\u00a0 Yes, good thought. And finally, just quickly, and this may relate to the first one we talked about: pleading budget constraint and being very positive and emotional about the property.<\/p>\n

Cate:<\/strong>\u00a0 Yes. This one is really appealing to the vendor\u2019s emotions as well. A lot of vendors who love their home and are feeling quite emotional about the sale will get a lot of comfort from knowing that a buyer who purchases the property loves the home as much as they did.<\/p>\n

So, sometimes, particularly when it\u2019s the last thing that you\u2019ve got up your sleeve, if you have hit the rev-limiter on your budget, it\u2019s all you have left, and that is to try and play to the vendor\u2019s emotions and have them sell the home at a price that they might have been a bit reluctant to do so, on the back of how excited you could be about buying it.<\/p>\n

It doesn\u2019t always go to plan. It\u2019s not a very reliable tactic, but every now and then, it can pay off. I\u2019ve had situations where vendors have chosen a slightly lower offer over that of someone who might have been a developer or an investor who was unemotional about the property because the purchaser has been able to demonstrate to the vendor, via the agent or via me, how much they love the property.<\/p>\n

Sometimes it\u2019s just a really heartfelt, well-written letter that\u2019s passed on to the vendor. So, people need to think creatively when they really are hitting their budget and they absolutely love the home.<\/p>\n

Kevin:<\/strong>\u00a0 See, this is the reason why it\u2019s great to deal with people like Cate Bakos. They are professionals. They know how to do this. They do it every single day.<\/p>\n

Cate Bakos is a buyer\u2019s agent out of Melbourne, and if you\u2019d like to use her services, all you\u2019ve got to do is Google her \u2013 you\u2019ll find her; she\u2019s very easy \u2013 Cate Bakos. I don\u2019t mean easy; I mean you\u2019re easy to find.<\/p>\n

Cate:<\/strong>\u00a0 Thank you, Kevin. That\u2019s really lovely of you.<\/p>\n

Kevin:<\/strong>\u00a0 Good on you, Cate Bakos. And thanks, Cate. We\u2019ll talk to you again soon.<\/p>\n

Cate:<\/strong>\u00a0 Wonderful.<\/p>\n","protected":false},"excerpt":{"rendered":"

The power of negotiation is what sets agents (both buyers and sellers agents) apart.\u00a0 The skills of negotiation are something we can all use in our everyday lives \u2013 not only when we are buying and selling real estate.\u00a0 Cate Bakos has some tips. 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