21 Aug How to negotiate like a pro!
With signals like the RBA cutting the official cash rate, APRA loosening their serviceability guidance to banks and the risk of changes in government policy disappearing it is no wonder that people are starting to revisit direct property as an asset class. This month we spoke to a buyers agent, Amanda Gould from HighSpec Properties about what tips she had when negotiating with a vendor.
As a professional buyers agent, I am often asked by clients; how do we have our offer accepted?
Here are the top 5 things you need to prepare for before negotiating:
- Price research – make sure you know the true value of the property, don’t just rely on what the agent tells you
- Contract review – have your solicitor/conveyancer thoroughly review the contract and send you any amendments
- Building & Pest or Strata report – order and have this reviewed by a professional
- Finance – check you have your finance pre-approved. Never make an offer without something in writing.
- Deposit – make sure you are ready with a bank or personal cheque
Remember it’s not just price you can negotiate on there are a number of other factors to take into account.
- Price – see what the interest has been how motivated the vendors are to sell?
- Terms -length of settlement, check what the vendors require
- Unconditional – including a 66W certificate this will waive your cooling-off rights. Only ever use this once you have completed your due diligence and had advice from your solicitor.
We often see buyers make common mistakes when negotiating these can make or break a deal. Some include:
- Taking your time
- Thinking the agent is playing games when they say they have a lot of interest on the property or an offer on the table and getting disappointed when they sell to someone else
- Not keeping the agent up to date on where you are at
- Don’t just negotiate on price, terms are just as important
- Not doing detailed research on price comparables
If you don’t feel confident and would like an advantage in a changing market, why not have your own secret agent on your side? Speak to Amanda Gould 0410 608 352 or visit her website here.
If you would like to know more, talk to Michael Sik at FinPeak Advisers on 0404 446 766 or 02 8003 6865.
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