{"id":9889,"date":"2017-07-27T07:00:02","date_gmt":"2017-07-26T21:00:02","guid":{"rendered":"https:\/\/reuncut.com.au\/?p=9889"},"modified":"2017-07-27T07:00:02","modified_gmt":"2017-07-26T21:00:02","slug":"secrets-of-great-real-estate-negotiators","status":"publish","type":"post","link":"https:\/\/channels.realty.com.au\/realtyuncut\/secrets-of-great-real-estate-negotiators\/","title":{"rendered":"SECRETS OF GREAT REAL ESTATE NEGOTIATORS"},"content":{"rendered":"<p>We can learn a lot about developing strong negotiation skills by listening to how top negotiators work.\u00a0 Recently I asked two top property negotiators for their tips.\u00a0 The\u00a0<a href=\"https:\/\/realestatetalk.com.au\/negotiation-tips-from-top-negotiators-nguyen-and-armstrong\/\" target=\"_blank\" rel=\"noopener noreferrer\">audio interview<\/a>\u00a0was originally produced for Real Estate Talk, but here is a transcript<strong>:<\/strong><\/p>\n<p><strong>Kevin:<\/strong>\u00a0 Top negotiators are always great people to talk to, especially if you want to get a bit of an edge when negotiating to get the best deal. I\u2019m going to feature two tips from one of Australia\u2019s top negotiators, Nhan Nguyen from Advanced Property Strategies, about the tactics he uses to get the price right when he\u2019s buying a property.<\/p>\n<p>Thanks for agreeing to do this today, Nhan.<\/p>\n<p><strong>Nhan:<\/strong>\u00a0 Thanks, Kevin, and thanks for having me. The thing I love about property is that it is a game \u2013 it\u2019s like chess \u2013 and you have to treat it like that. One of the best tips I can give people when they\u2019re buying a property or selling a property is asking for more than what they\u2019re willing to accept.<\/p>\n<p>I\u2019ll give an example. Let\u2019s say a property is asking for $300,000 and you\u2019re happy to pay $260,000; you might offer them $240,000 or $230,000. Why you ask for more than what you\u2019re willing to accept is that it gives you room for leeway in negotiation. If you\u2019re happy to pay a $5000 deposit, maybe you just offer them a $1000 deposit.<\/p>\n<p>If you\u2019re happy to settle in 30 days, maybe offer them a 60-day settlement. You\u2019re always wanting to ask for more than what you\u2019re willing to accept because people, when they come back to you and say, \u201cWe don\u2019t want 60; we want 30,\u201d which is what you\u2019re happy with originally, then they feel like they\u2019ve had a win.<\/p>\n<p>Another big tip when you\u2019re negotiating is try to leave the negotiating table with the other party feeling like they\u2019ve had a win. Whether they have or not is another story, but if they feel like they\u2019ve had a win and they feel like they\u2019ve been able to have the final say, that\u2019s definitely a win-win.<\/p>\n<p>I\u2019d say that the last tip, if you can, in a negotiation is aim for win-wins. It might be their price and your terms or your price and their terms.<\/p>\n<p><strong>Kevin:<\/strong>\u00a0 Nhan Nguyen there from Advanced Property Strategies. Nhan, thanks for your time.<\/p>\n<p><strong>Nhan:<\/strong>\u00a0 Thanks, mate. My pleasure.<\/p>\n<p><strong>Kevin:<\/strong>\u00a0 In a strong market, many buyers fear the auction process because competition drives prices out of their reach. Auction clearance rates, of course, are high, so there\u2019s no doubt we\u2019re going to see a continuation of a large number of buyers trying to avoid the auction process.<\/p>\n<p>What happens when you\u2019ve been through a property a few times and you absolutely love it and then comes the call from the agent: the vendor has received an acceptable offer? What do you do? What are your options?<\/p>\n<p>Mark Armstrong has faced this on a number of occasions and has written some articles about it as well with some really good advice. He joins me.<\/p>\n<p>Hi, Mark. Thanks for your time.<\/p>\n<p><strong>Mark:<\/strong>\u00a0 Hi, Kevin.<\/p>\n<p><strong>Kevin:<\/strong>\u00a0 That must be the dreaded call for all property buyers \u2013 when their agent calls with that information.<\/p>\n<p><strong>Mark:<\/strong>\u00a0 Yes, it really is. Buyers are out of their comfort zone anyway when they\u2019re buying property via the auction process, but when you get that phone call, there are a lot of unknowns around what is going on. You don\u2019t really know how many people have an interest in the property. You don\u2019t really know exactly where their offers are.<\/p>\n<p>At least, in an auction process, you can see every buyer and you know what\u2019s going on, but when you get that phone call to buyers prior to auction, it can be very difficult.<\/p>\n<p><strong>Kevin:<\/strong>\u00a0 There\u2019s a temptation, too, for many buyers to not believe the agent and believe it\u2019s really just a ploy on their part to try and pump them up or to get an early offer.<\/p>\n<p><strong>Mark:<\/strong>\u00a0 You have to be careful. I think that the key to it is to make sure that the agent tells you that the offer on the table is acceptable and that the property is going to be sold.<\/p>\n<p>I think in some instances, an agent can ring up and say, \u201cLook, we have interest in the property and it might be sold, so we encourage you to put in an offer.\u201d That\u2019s the instance where they may not have any other offers and they may not have any other interest in the property, but they\u2019re just trying to force your hand to do something prior to auction.<\/p>\n<p><strong>Kevin:<\/strong>\u00a0 Yes, in some states of Australia, agents actually put out what they call a multiple offer form, which indicates and asks the buyer to sign a form saying they\u2019ve been advised that there are other offers and they\u2019ve been encouraged to put an offer forward, which could be their only opportunity to buy.<\/p>\n<p>I think when you see those sorts of forms, you know that the agent is pretty much on the level.<\/p>\n<p><strong>Mark:<\/strong>\u00a0 Absolutely. There are a lot of agents around who have a very clear system that they use for dealing with acceptable offers and they really have an obligation. I think there\u2019s the perception that someone who puts in an offer before auction and their offer is accepted, they have the impression that they\u2019ve won and the property has now been sold, but it really just triggers a process where the agent has an obligation to call anyone else who has seen the property and who has registered an interest in the property to give them the right to try and buy the property, as well.<\/p>\n<p><strong>Kevin:<\/strong>\u00a0 When you find yourself in that position, let\u2019s step through the process now, Mark. Your advice is the first step is to fast-track your preparation.<\/p>\n<p><strong>Mark:<\/strong>\u00a0 Yes. Buying before auction is usually unconditional just like buying at auction, so you have to make sure that you have all of your finances approved. You have to make sure you get your building inspections done, contracts checked, and really make sure you\u2019ve done all of your due diligence before you put in any offer. That\u2019s really, really important.<\/p>\n<p><strong>Kevin:<\/strong>\u00a0 Also important is the second step of that, which is determining your spending limit and then being pretty well fixed on that.<\/p>\n<p><strong>Mark:<\/strong>\u00a0 That\u2019s right. You really have to do your work on what the property is worth and really have done your research and know exactly where your upper limit is. Usually with the buying prior to auction, you have one shot at it. You have one opportunity to put an offer on the table and you usually find out whether you\u2019ve won or not won.<\/p>\n<p><strong>Kevin:<\/strong>\u00a0 We\u2019ll talk about price in just a moment, but I think the next step then, you say, is to call the agent. Is it fair that the agent would give you an indication about the other buyer\u2019s offer?<\/p>\n<p><strong>Mark:<\/strong>\u00a0 They can\u2019t tell you exactly what the offer is. In some cases, they do, but I don\u2019t believe it\u2019s ethical to say exactly where the offer is. But they\u2019ll certainly give you an idea of saying, \u201cYou\u2019ll need to be above $500,000,\u201d or \u201cYou\u2019ll need to be above $600,000\u201d or whatever the case may be. The agent can give you guidance as to where you need to be.<\/p>\n<p>It\u2019s really important. The agent is there working for the vendor, so their job is to get as much money as possible. They also have an obligation to their vendor to guide any buyers through the process to still try and maximize that sale price.<\/p>\n<p>When we\u2019re stuck in this process of buying before auction, we talk to the agent as much as possible, find out a little bit more information, find out how many other buyers have an interest in the property. Really get as much information as you can before you put in that offer.<\/p>\n<p><strong>Kevin:<\/strong>\u00a0 Yes, and I think, too, remember, it\u2019s not all about price. Sometimes it\u2019s good to ask the agent, \u201cWhat\u2019s the motivation of the seller? Do they actually want a settlement earlier if they\u2019ve purchased somewhere else?\u201d because those things can actually help in your offer.<\/p>\n<p><strong>Mark:<\/strong>\u00a0 Absolutely. We\u2019ve bought property in the past where our offer has actually been slightly lower than the best offer but our settlement terms were 30 days as opposed to 90 or 120 days. When you\u2019re buying a property that\u2019s worth hundreds of thousands of dollars, the interest savings that the vendor gets by selling and settling earlier can run into $5000 or $10,000 or even more, so it\u2019s not all about the money.<\/p>\n<p><strong>Kevin:<\/strong>\u00a0 From there, the offer must be submitted in writing, Mark?<\/p>\n<p><strong>Mark:<\/strong>\u00a0 Yes, it must be submitted in writing. It\u2019s a binding offer. You have to put a check on the table, as well. If it\u2019s acceptable and the vendor countersigns, then you\u2019ve bought the property and it\u2019s a binding contract.<\/p>\n<p><strong>Kevin:<\/strong>\u00a0 Yes, and the reason you\u2019d would want to put in writing, too, is to show the seller that you are serious. Verbal offers really don\u2019t carry any weight at all.<\/p>\n<p>I guess the bottom line, too, just to finish this conversation off, is to always remember to make your best offer, sit back and wait, but remember, there\u2019s always another property.<\/p>\n<p><strong>Mark:<\/strong>\u00a0 Yes, that\u2019s right. I think people buying properties before auction, the motivation to do it usually is born out of frustration because they have been to so many auctions and they\u2019ve missed out so many times. You can often make a mistake buying before auction because you do get too emotional and do get too carried away.<\/p>\n<p>But you\u2019re right; there is always another property around the corner. You have to go through the process methodically, understand what you\u2019re buying, understand the price point, and follow that sort of routine.<\/p>\n<p><strong>Kevin:<\/strong>\u00a0 Good advice from Mark Armstrong. If you\u2019re going to be out shopping around for an auction this weekend and you want to make that offer, there\u2019s a great guideline for you.<\/p>\n<p>Mark, thanks for your time.<\/p>\n<p><strong>Mark:<\/strong>\u00a0 Thanks, Kevin.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>We can learn a lot about developing strong negotiation skills by listening to how top negotiators work.\u00a0 Recently I asked two top property negotiators for their tips.\u00a0 The\u00a0audio interview\u00a0was originally produced for Real Estate Talk, but here is a transcript: Kevin:\u00a0 Top negotiators are always&#8230;<\/p>\n","protected":false},"author":176692471,"featured_media":9887,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[141],"tags":[],"class_list":["post-9889","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blogs"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - 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