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Negotiate the price when you buy the property, any suggestions?

Discussion in 'The Buying & Selling Process' started by paper, 20th Aug, 2015.

  1. paper

    paper Well-Known Member

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    Anyone have any experience to share how they can negotiate the price in a win win situation?

    I am not good at all. Once the agent suggested the price is over $$$, he indicated he would not accept any price lower than that figure. In the next day, he phoned me again and asked me to put an offer. After he got the answer, he told me off.:(
     
  2. FireDragon

    FireDragon Well-Known Member

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  3. HUGH72

    HUGH72 Well-Known Member

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    Easy, don't put up with any BS.
    Tell him" I was considering stretching my budget and making another offer. But considering how rude and unprofessional you have been I am no longer interested.":)
     
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  4. Chilliblue

    Chilliblue Well-Known Member

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    Some agents do not care and have little professionalism. Sometimes it can help that you give examples of similar properties that have sold recently that support your offer.

    If the agent continues to belligerent then make the formal written offer to the vendors solicitor. Best of luck.
     
  5. Perthguy

    Perthguy Well-Known Member

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    Don't worry about it. It's just business, not personal. I once put in an offer so low that the agent called me up and yelled at me down the phone. I did get a bit upset at the time and almost hung up on him but I just took a big breath, calmed myself down and explained the reason behind my price. He calmed down too and took the time to understand the reasoning behind the price so he could explain it to his vendor. Well, in my case I was a bit cheeky. The property had originally been on the market for $549,000 and my first offer was $440,000 :p
     
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  6. 2FAST4U

    2FAST4U Well-Known Member

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    What was the asking price and what was your offer?
     
  7. Leo2413

    Leo2413 Well-Known Member Premium Member

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    My personal take on this is if you don't play tough with the agent then they will play tough on you. It also really depends on what market your buying into.

    A brief approach:

    1. Write down all the points up for negotiation, eg price, terms etc
    2. Determine your bottom line which is still a good deal for you and start negotiating below that.
    3. Don't give up something without making the other side give up something. eg if they want a longer than normal or shorter than normal settlement, regardless if it suits you or not let them know you might be able to concede it if they offer 'X' in return.


    Listen, regardless if you approach this from a 'win-win' attitude, I guarantee you the agent/vendor is going to generally try every trick in the book to get the highest price and best terms from you as they can with little regard to what's good or fair for you.


    Two good books on negotiations:

    2015-08-20 15.46.26.jpg
     
    Last edited: 21st Aug, 2015
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  8. Big Will

    Big Will Well-Known Member

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    Give get is something @Leo2413 is referring to.

    If you have to 'give' them a different settlement make up something that you need to reduce the price. Like oh that will mean I will need to rent my place for longer so would need to drop the price by $2,000 or If we settle earlier I will still have a lease in place so will need to reduce the price by $2,000.

    Get creative and the worst thing someone can say is no.
     
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  9. Azazel

    Azazel Well-Known Member

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    Keep his contact details and use him as practice for other houses he has advertised. You could even use a funny voice and/or name if you wanted.
    Once you're able to negotiate with him confidently, you should be ready to move onto some real deals.
     
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  10. Tony Fleming

    Tony Fleming Well-Known Member Business Member

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    The John Potter book I've read plenty of times and helps. At the end of the day you need to set a price your willing to pay and not waiver on it. Did you explain why you were willing to pay that amount. If you give reasons why the agent is less likely to feel your just looking for a bargain price. Use comparative sales lile a bigger house sold for less than this, if the vendors looking for a quick settlement offer a shorter settlement period, any repairs that need doing. Also if the agent told you off he is probably a ******** see how his attitude changes once the market drops, doubt he will be treating any enquriers like that than.
     
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  11. DanW

    DanW Well-Known Member

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    Give him a written offer (at YOUR price), with a 48 hour Expiry and subject to finance. He has to submit it and you do not have to listen to him tell you off.

    You can move on to offer on other properties after that. Personally I have done many even on the same day (there are ways to deal with if you have 2 offers accepted at once)

    If you are offering on lots of properties it's easy to not get hung up about just 1. A numbers game means you will get one in the end. Don't fall in love, sleep around is the moral here..

    This is for IP. If it's OO then another story..
     
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  12. Azazel

    Azazel Well-Known Member

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    What suburb or area was this in just out of curiousity?
    There's plenty of these types out there.
     
  13. larrylarry

    larrylarry Well-Known Member

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    I agree but I won't use the fall in love analogy. Haaa...

    Know your bottom line after crunching numbers like comparable sales. Comparable rentals, buffer for repairs, sale history and expected CG and work out an offer you are prepared to pay and that's it. Leave emotions behind because you're not living in it. The more you do your research and negotiation the sharper you get.
     
  14. paper

    paper Well-Known Member

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    only 20K difference
     
  15. paper

    paper Well-Known Member

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    Wembley
    a small unit
     
  16. paper

    paper Well-Known Member

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    That's a bargain.
    Once I was told by another agent the asking price was from $$$, the market value was over $$$, what did you think for the offering price...

    I told her it was over valued as another bigger block better than this location the bank only valued much less than $$$. She instantly walked away.
     
  17. paper

    paper Well-Known Member

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  18. Leo2413

    Leo2413 Well-Known Member Premium Member

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    The vendor/agent is probably frustrated because he has no other good offers.

    Depending how bad you want it you can meet half way or hold your ground. I don't know enough of the deal though.
     
  19. paper

    paper Well-Known Member

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    You made so much offer... what did you do when they told you two offers were accepted?
     
  20. paper

    paper Well-Known Member

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    What does the OO mean?