Some negotiation tips from a licensed real estate agent
Knowledge about the vendor can be really important – why are they selling, have they rejected any offers and what were the terms, what kind of settlement works best for them? Consider how long the property has been on the market, and whether a price adjustment is likely to be advised by the agent soon. Sometimes, it pays to think outside the box a bit about terms other than price: higher deposit that can be released, a rent back option, any chattels that the seller would like to keep?
A case study of how to negotiate via private sale
A client found a dream location to build his forever home. He asked us to analyse the site to confirm build possibilities, and if it stacked up, he wanted us to negotiate on his behalf. It had been on the market for 7 weeks asking $1.65m – $1.8m and he was willing to pay $1.78m. I knew the agent, and he confirmed what I thought – a price adjustment was being discussed. Before a new range was advertised, we offered $1.65m, and negotiated a purchase for $1.68m. Our client saved $100,000 through smart negotiating tactics, and paid us a small fraction of that.