Using BAs, a hindrance to low-ball strategy?

Or maybe I just accept any offensive reaction as part of the game

 

TBH, I just ignore it when I see it in other people as I find that people get “outraged” by everything these days .

But I must admit I have used it (that is, being offended) as a negotiating gambit on more than one occasion in my life but it is an act.

I am still surprised that it works on so many occasions .

 

That's kind of funny. Agents can be quite arrogant in hot markets, everyone's got a story of unresponsive sales agents when the market is moving very quickly.

Right now, in a slower market, I've heard several stories of selling agents calling BAs asking if they've got clients wanting to buy properties. At the same time there's other agents trying to figure out how to become a BA.

When markets are hot, real estate agents can afford to be arrogant and picky. The market is now a lot slower and will likely remain that way for some time. There's likely to be a lot of desperate real estate agents out there and a lot will be looking for alternate sources of buyers and many will even be leaving their jobs.

 

My overall thoughts on the original question are that BAs tend to be experienced negotiators and they know the market (or at least they should be all that). A BA is unlikely to want to make offer after offer that's so low that they know it will be outright rejected every time. At the same time they should also know when to push and when to recognise a good deal. I'd expect asking a BA to simply go 20% below the market value on property after property isn't going to get you the best service because for the most part it can also waste a lot of time.

I'm not saying a low ball strategy doesn't work. Most agents and sellers aren't going to sell a property for a ridiculously low price so low balling is going to result in a lot of rejections. Occasionally though a bargain will appear, but often these don't really present themselves upfront. It's really a question of how long you're willing to work at it. Keep in mind you're primarily paying a BA for their expertise, but there is a time component to that as well.

 

Assuming the op is going to offer 50% of listed price on everything. Which might work in a crash. How do the BAs handle a client like that?

 

If that was the client's stated strategy upfront, then most BA's would not take that particular client on. If it only came to light after engagement and well into the search, if the client was not willing to follow the advice of the BA on the best negotiation tactic on each deal, then they might agree to part ways.

 

I'd imagine no BA is going to take on a client who's buying brief is to offer around 50% off the listed/asking price on everything. If they did that they'd be the laughing stock of all the selling agents in the area. The real value of a BA for a client who wants to throw low ball offers is the BA will know which agents are the best to get a good deal from, which agents often get access to distressed sellers and mortgagee's and also the agents to avoid that work hard to achieve a high sales price. It can take an inexperienced buyer months to work that out in their chosen market.

 

Hi Guys,
I am unsure if this is an appropriate question to ask. However if I may ask what is the approximate cost of getting the services of a BA for negotiation? Just ballpark number. Do BAs charge per negotiation deal irrespective of the outcome? Sorry for the newbie question.

Thanks.

 

FAQs | Real Estate Buyers Agents Association of Australia (REBAA) Inc. And go to the “how much does a BA cost?” question.

Usually an evaluation and negotiation on a property you have found is about 1/2 the cost of a full search service.

 

Yes, I would think so.
But low-ball will only work in a comatosed market anyway.

 

Ideally you want to be as stugmatised as your property.