Michael Yardney<\/b><\/a> explains the 3 critical property negotiating pressure points at work in every negotiation; either you are applying them to the other party or they are using them on you.
\n <\/p>\nTranscript:<\/h4>\n
Kevin:\u00a0 <\/b>A strong competition for properties in rising prices has created a seller\u2019s market in many parts of Australia, so how do property buyers tip the scales in their favor? Well, let\u2019s find out. We\u2019ll ask one! Michael Yardney is one of the best-known buyer\u2019s agents in Australia from Metropole Property Strategists. He\u2019s also a regular guest on our show.
\nGood day, Michael.
\nMichael:\u00a0 <\/b>Hello, Kevin.
\nKevin:\u00a0 <\/b>How do you tip the scales in your favor?
\nMichael:\u00a0 <\/b>I believe negotiating, even in this hot market, can help savvy property investors get themselves a pretty good deal. What they really need to understand, Kevin, are the three critical negotiating pressure points.
\nKevin:\u00a0 <\/b>Okay. What are they, Michael?
\nMichael:\u00a0 <\/b>These work in every negotiation. Either you\u2019re going to apply them, or they\u2019re going to be used on you by real estate agents who have been taught well how to negotiate. The first one in my opinion is options. The person with the most options has the most power.
\nWhen you\u2019re buying a property, it\u2019s important to convince the seller that you have more options than they do because the power of negotiation, as I said, goes to the person with the most options. Look at it this way. If a seller has two buyers willing to offer him $500,000, you probably don\u2019t have the option or the ability to get your offer of $480,000 accepted.
\nHowever, it\u2019s important to realize that in negotiations, often perception is the reality. Agents will often tell you this other buyer is interested or they have better offers than you, and maybe it\u2019s not the case; it\u2019s just a pressure tactic.
\nKevin:\u00a0 <\/b>What sort of language can we use in this case, Michael?
\nMichael:\u00a0 <\/b>I\u2019d let the agent know that you\u2019re interested in the property, but I\u2019d say something like, \u201cI like this property, but there are two others I have in mind. One is in a bit of a better location. One is maybe in not as good a location.\u201d You actually let him know that yes, you\u2019re interested, but not that much \u2013 because the person with the most options has the upper hand.
\nKevin:\u00a0 <\/b>Wow, that\u2019s very powerful. What\u2019s the other one, Michael?
\nMichael:\u00a0 <\/b>Time is another critical pressure point in negotiations. If the vendor is highly motivated, if they\u2019re under time pressures, you can find yourself a terrific buy. Now, sometimes it\u2019s hard to know the pressures on the vendor. Some agents will sometimes tell you, but other times, it\u2019s worth asking some questions, Kevin, to try and see what\u2019s really behind it.
\nKevin:\u00a0 <\/b>Michael, what sort of questions?
\nMichael:\u00a0 <\/b>Now, you may even know the answer to these, but what you want to know is what\u2019s going on in the background. I\u2019d ask questions like, \u201cHow long has the property been for sale? Have you received any other offers? By the way, how did the vendor come to his price? Was this your suggestion? Was it his suggestion?\u201d
\nKevin, I like to use time pressures when writing an offer. I put my offers in writing, but I tend to put a deadline. I put in an offer something like this: \u201cThis offer expires at 6:00 P.M. on Thursday the 15th of the month,\u201d but I give a reason why to make it make sense.
\nKevin:\u00a0 <\/b>What is that reason, Michael?
\nMichael:\u00a0 <\/b>Well, I say something along the lines of, \u201cI\u2019m considering purchasing this property \u2013 that\u2019s why I\u2019m going to give you an offer \u2013 but if it doesn\u2019t come off, there\u2019s another one I\u2019m looking forward to go to at auction this weekend. If the vendor doesn\u2019t accept my offer by Thursday afternoon, I really have to withdraw my offer because I can\u2019t have it remaining open and end up at the weekend possibly end up owning two properties.\u201d
\nKevin:\u00a0 <\/b>Yes, I suppose by explaining it that way to the agent, you\u2019re giving yourself a better chance for it to be portrayed in that way to the seller, Michael?
\nMichael:\u00a0 <\/b>You are. It\u2019s actually giving a reason for it rather than just being a bully.
\nKevin:\u00a0 <\/b>And the third one?
\nMichael:\u00a0 <\/b>The other big pressure point is knowledge. In negotiations, the side with the most knowledge will do better. The fact is that most property investors have done homework, have done research, and they really probably know more than the seller and sometimes even more than the estate agent, who may only know a particular segment of the market.
\nApart from researching the local market, you also have to find out a bit about the vendor, like we\u2019ve already said. Get yourself as much knowledge as you can. Be confident that you\u2019re therefore making a good offer at the right time of the property cycle, and this could create a win-win solution that\u2019s going to let you buy a good property at a fair market price.
\nKevin:\u00a0 <\/b>The thing that comes through for me listening to you, Michael, is that it\u2019s not always about just making a cheeky low offer as the strategy, is it?
\nMichael:\u00a0 <\/b>It is. You\u2019re right. There is some thought process to it, and most Australians are uncomfortable with negotiation. They\u2019re taught to be courteous and polite. While you can still do that, there\u2019s no reason why we can\u2019t negotiate hard. Remember if you don\u2019t, the other side will against you.
\nKevin:\u00a0 <\/b>It\u2019s always good talking to you, Michael Yardley from Metropole Property Strategists. Now, I know how you do it! Thanks, Michael.
\nMichael:\u00a0 <\/b>My pleasure, Kevin.<\/p>\n","protected":false},"excerpt":{"rendered":"
In today’s show Michael Yardney explains the 3 critical property negotiating pressure points at work in every negotiation; either you are applying them to the other party or they are using them on you. Transcript: Kevin:\u00a0 A strong competition for properties in rising prices…<\/p>\n","protected":false},"author":176692471,"featured_media":4307,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[10,25],"tags":[101],"class_list":["post-4268","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-kevin-turner-sponsored-channels","category-sponsored-channels","tag-podcast"],"yoast_head":"\n
How to win in a sellers\u2019 market? - Realty Talk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/channels.realty.com.au\/realtytalk\/how-to-win-in-a-sellers-market\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How to win in a sellers\u2019 market? - Realty Talk\" \/>\n<meta property=\"og:description\" content=\"In today’s show Michael Yardney explains the 3 critical property negotiating pressure points at work in every negotiation; either you are applying them to the other party or they are using them on you. 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