I crumble on talking to RE agents. Tips?

Never been a negotiator, not good at fending off direct questions. I know information is power and Im really bad at poker.

Spent the morning at a couple of open houses. Some for curiosity, one Im interested in. what is the difference between making small talk and blurting out your max buy price?

Told one RE what partner does for a living. (its a well paid job) As soon as I said it, i thought it was probably a mistake.

One asked my what price point Im looking at. Thats fair i guess but does that have a down side?

What are your answers to RE agents probing questions?
any pitfalls?

 

Tell them you're acting on behalf of your partner, who is unable to make it to the open house. By taking yourself out of the buyer's chair you might feel more relaxed.

 

Consider your next interaction as a learning experience.
The RE agent is there to give you info, so ask questions.

So he says it's a great investment, you ask:
Why is this a great investment?
How many investment properties do you own?
What kind of rental return are you getting?

Whatever he gives you, ask get info and learn.

He says it's a great area, you ask:

What's the crime rate?
Do you own property in this area?
Where do you live?
Is it good there? Why?

Eventually you will realize most don't know much, probably less than you and will make it much easier to deal and negotiate with.

 

I am doing the RLA Diploma at the moment, and the subject gets around to what do you own,amongst wanna be gun agents,,who rent and probably have never purchased any real estate.I bowled them all with my journey.

 

They are only people, go to as many opens you can and talk to as many people as you can, it will soon fall away and if your paying attention it will paint a picture of the area over time.

There will be people you find it easier to talk too, and ones that can be difficult, this is not really a property related skill, it is just a people skill really, property has no personality, it is what it is.

 

Picture them naked?

wait... that might actually make it worse.

...never mind

 

Agents don't answer my direct qs so why should I answer theirs?

Me: how much does the vendor expect on this house?
Agent: we prefer to keep that number close to our chest. What is your budget?
Me: I prefer to keep that number close to my chest (*mutter mutter*).

 

Real Estate people are normal people too (despite how much we slag them off ).

They also respond well to honest and up-front folks who don't waste their time.

So; give them all the information you can to help them help you find the properties you are after, and the price ranges you are able to buy in.

They don't need to know your income; they will only be interested in whether or not you are a serious buyer. The good ones can pick out posers, tyre-kickers and w@nkerz a mile off.

For example; if you are an investor; state this up front, and state all the criteria you are looking for for your purchases...rent yields, property type, locations and so on...ask them lots of questions about these things too; if the agents know you are fair-dinkum; they will help you.

Next; you need to do your own homework and find out what the various properties in that chosen area are selling for; so that when they find one for you; you can then talk about price from a position of of knowledge and strength.

It is no good simply chucking some silly low-ball figure at these people and hoping it will work... it may work every purple moon, but generally; if that is your method of negotiation; they will blow you off quick smart.

If you are gunna low-ball; it needs to be a win-win...I've offered low at times but with a 30 day settlement...that works most times, but not if the Vendor is in no hurry to sell or settle.

So; in summary; view them as normal people like you; don't go to war with them and foster a nice transaction.

 

Practice makes perfect. Years ago I used to go to open homes on properties I wasn't interested in just to practice talking to agents as well as trying to build rapport.

A lot of the questions to ask have already been mentioned but I would push to find out the vendors motivation for selling. You can work on making your offer more attractive with that information.

 

1. Why are you moving/ buying? Time for a change. We don't have to move but if the right property comes along we'll consider it. If IP: Looking to buy an ip if the right one comes along. So why are the vendors selling?

2. What is your timeline? We are pre-approved and ready. Have the vendors already bought somewhere else?

3. What is your budget? What are you pre-approved for? Enough to be able to buy a house we like and see value in. Are the vendors flexible on any terms eg longer settlement, etc

3. Have you been to any other opens yet? Yes, Quite a few. There are some great properties on the market. How do you think this property fares when compared to similar properties in the streets around? Are there any known issues with this property or land?

4. Have you bid on any other properties or made an offer? which one? We've put an offer on one though we'd like to keep that information private. Do you know if the vendors are looking for a quick sale?

5. Is this your first purchase? Actually no we have 4 in our portfolio. Do you know if any offers have been made yet?

6.What do you think of the price guide/it will sell for? Its an interesting price guide, not really sure what i think it will sell for though. Any idea what the vendor is really looking at?

 

For me, the simplest way to gain control is to say that while I like this property, I also like property x down the road and it has x, y, z features that this doesn't have.

Just don't come across as desperate or naïve - there are other properties that fit your criteria. And you are willing to wait for the right purchase.

 

Leo2413

Wow that's awesome!!
Really smooth!

I showed up with another shiny brochure in my hand. ( there were several open homes in the neighbourhood. Some within walking distance. A lot of questions I just smiled and said my partner and I are still discussing that! Nothing is set in stone at this stage. ...

I was trying to come across as polite and non committal but I felt shifty and evasive.
I know some people love this part of "the game". It isn't for me but I admire people who play it well!

 

Its OK, this isn't everyone's forte. Just be prepared as best you can with answers you are comfortable to give, followed back with a question. Try your best to hold your cards close to your chest. Never reveal what your pre-approved for, never show your too extremely interested. Showing interest is good, but not too much. If you have a seasoned investor to go with, it can be a good help. Don't worry about appearing 'rude' to agents, many of them are expert at playing this game and know how to use all the emotional cards. They couldn't care less if they offend you so don't worry about standing your ground in a measured, polite way.

 

Not everybody is a great talker. Just plant the idea in the agents mind you are seriously thinking of buying competing property x or y or z. If they want you to buy theirs, you aren't going to be pushed around. They lose negotiating power over you.

 

You were being shifty and evasive ...

While agents often lie, I have never had a need to lie to them, when you like you have to try and remember your lies....

 

If you're not good at it and you feel like you are putting yourself at a disadvantage, consider outsourcing to a Buyers Agent who is used to doing this everyday for a job.

 

Great negotiation in answering the questions. Not giving a concession without asking for one in return. Love it.

 

I wouldn't dare...

 

I agree. Personally, I believe the skill can be developed and improved if someone is bothered to.