Negotiation Strategy

Hi,

Just looking for some advice and tips on successful negotiation.

I have received formal offers for a property from non exclusive agents and directly with developers.

If I get an offer that exceeds previous offers, do I just go to the other parties and advise them the offer? How much do I disclose in terms of deposit, settlement terms etc

Any advice on strategies and any other tips greatly appreciated!

 

What does your lawyer say?

 

My lawyer has the latest offer from the developer and will get back to me in the tomorrow. But their expertise is not negotiation in property sales. I am after advice and tips of negotiating best price between offers. Negotiation isn’t my strength but I’d like to learn.

 

If you have received an absolutely fantastic offer and terms you are happy with, approach the other interested parties letting them know they need to be north of X amount if they want it. Give them a deadline. If developers are approaching, be sure you know what the premium value will be for developers.

At the end of the day it all depends on what kind of interest there is on your property and what is the overall value. It's very hard to know what strategy to use without knowing a lot more information.

 

Most developer contract have minimal room for negotiation or updates, due to commissions embedded for the “middle man” involved.

For your own sanity, feel free to ask your lawyer/conveyancer if they will receive any payment from the developer and how much would that be?

 

My solicitor could receive a payment from the developer? I don't understand the connection between my solicitor and the developer?

 

The solicitor has a trust fund (same as real estate agents) and can be the deposit holder. The deposit can't be released to you unless it has been agreed.

Your solicitor shouldn't be getting any payment from the buyer to ensure there's no bias or conflict of interest.

 

OK thanks for clarifying. Deposits would be straight to vendor, I would stipulate that in contract.

 

I don't understand why your solicitor hasn't made the process clear to you . Have you asked your legal professional the questions you are asking here?

That's what they get paid for.

 

The latest offer only came in this week, I have forwarded to my solicitor and they are reviewing it and will get back to me.

Isn't that what this forum is for, to ask question and gain knowledge? And to share what we know? I don't see what the issue is with the questions I am asking. Or why I should already have the answers before asking them.

 

Topic could potentially be applicable to my selling process so thank you @GreenTreeFrog.
Could you please clarify, when you say from "non exclusive" agent, you mean the agent is an "open" one, i.e not exclusive, nor a "sole agent" either ?
Thank you.

 

If you deal with a developer it's usually on their terms, just you ask your legal representative about any sub-clauses built into the sale contract before you sign.

 

Yes I have an open agreement with two agencies, so I am free to negotiate directly with buyers/developers myself if I am approached directly, which I have been. Therefore I pay no commission to the agency unless they are the agent who introduces the buyer.

I don't sign the standard Open Selling Agency Agreement (NSW) as it is, quite a bit is struck out or amended to suit my circumstances.