With spring here and buyers and sellers preparing to get active, it’s important that new buyers know how to effectively negotiate with real estate agents. Buyers need to realise that sales agents are there working for the vendor. So, it’s important that they are prepared for negotiating with the agent. Here are some things you can do to help your position.
Be financially prepared
Being confident at the negotiation starts with having a solid understanding of your own financial situation. This means knowing how much you can afford, which should be determined through discussions with your mortgage broker. Obtaining pre-approval before you even start your property search is a strategic move that you can use to help your negotiations.
Gather information and research
Knowledge is power when it comes to negotiation. Make sure you have a clear understanding of what your target property is actually worth. Conduct your own research by checking comparable sales in the area over the past few months. Also take a look at the property’s background, the state of the local market and any pertinent factors that could impact its price.
Understand the seller’s motivations
Being aware of the seller’s motivations can give you an advantage in negotiations. Talk to the real estate agent to learn about the seller’s circumstances. Why are they selling? Have they already purchased another property? How long have they owned the house? The more you know, the better you can position an offer.
Define your goals
When entering into a negotiation, it’s important that you set clear boundaries and objectives. You should establish the maximum price you’re willing to pay for the property, however, keep this information confidential. You should also work out what terms you’re prepared to offer and then work towards achieving the best outcome.
Make confident offers
Confidence is your ally when making an offer. Clearly present your offer and provide well-reasoned justifications backed by your research. Be assertive yet respectful in your approach and be prepared to compromise if needed.
Stay calm
Negotiations can become intense, but maintaining a positive and composed demeanour is crucial. Avoid building too much of an emotional attachment to the property, as this can put you at a disadvantage. If you set your goals and know what you are prepared to spend beforehand, then you can be confident.
Recognise when to step back
Knowing when to walk away is vital in any type of negotiation. More often than not, the party that needs the deal the least will likely be the one who has the stronger position. If the negotiations push the price beyond your limit, it’s okay to step away. Not every property is meant to be, and there will be other opportunities.