To me a win-win means: We get what we need and the vendor will get as best as the market will allow. Do you think we would be able to get BMV or great deals if the market was in favour of the vendor? Highly unlikely. To me win-win is when you DONT try to completely decimate a vendor like totally ruthlessly. To be honest this is really hard to happen because the market wont allow it, and if the market does then the person buying it is generally taking on much higher risk together will all the normal risks. So the question is: Do you negotiate strongly in favourable markets to get the best you can? I believe its a no brainer yes. We are investors taking on massive debt, risk and sacrifices. Its honestly so stupid how some 'investors' post mortem deals to say ...ohh jeez... this person could have gotten 10k more but didn't therefore it was a fair deal......or this unit was falling apart so the 50k under value buy was fair or not fair etc etc... Its got to be the most ridiculous line of thinking I have ever heard of from professional investors, imo. I understand 'win-win' is important and please don't get me wrong I am not saying I believe investors should try to take the vendor's every last cent cos that's not my view, but seriously it needs to be put into context of what is our primary business here?
Always try to do win win deals. Always understand the other party's needs and try to satisfy those in exchange for getting some of your own.
I agree DT 100%. But my opinion is that it needs to be put into context. A site on the market in good times is worth 800k but you know you can get it for 680k if negotiated well due to market conditions. Does one not go for it at 680k and instead offer 750k? All needs to be put into context of what are we. just my opinion.
If a property is for sale on the open market, is it possible for a purchaser to "rip off" a vendor? After all, no one is forcing a vendor to accept an offer. The vendor could hold out for a better price.
Maybe I have spent too many years in business but I have to disagree. If i thought that I could get a cracking deal then I would, and I have. I would never say "oh I think its fair if I pay you 10k more than agreed because that's fair", and if anyone else would do differently then I suggest choosing a different hobby. As investors, we take on a lot of risk and we have to deal with a hell of a lot of BS from agents, solicitors, councils etc. A lot of sharks basically. And you have to be savvy and do the absolute best you can in each deal, dont worry about the vendor- get the best deal. If the vendor is selling in a crap market, then give em a crap price. Do you think that any vendor in Sydney is going to try and give you a 'fair' price at the moment? Hell no, why do you think they do auctions? To pitt buyer against buyer to receive an inflated price- and it works. Is it fair? How many times have you wasted your weekends attending auctions or opens through agents under quoting in order to drive the price up through perceived interest? Get the best deal you can in whatever market you are in, be cunning and clever and lie if you need to.
Almost my exact thoughts and kudos to you for not being afraid to post what many people who wont post are thinking is just common sense for an investor. You can still have the above approach AND be win-win. Just not the kind of win-win many think of.
I grew up in Dundas Valley. Not a flash suburb. Our neighbour who was there forever (very very long time) got an offer to buy their place for over 700k, this was when a normal house in Dundas Valley sold for less than 200k. She and her husband accepted (they were a really lovely old house proud couple, but were old.... he was very hard of hearing)... anyway, I reckon they would have easily accepted an offer of 400k if it was presented to them. The developer did nothing to the land for 20+ years now... So really, not a win for the developer who could have picked it up for about half as much as he offered, but very much a win for my neighbour... It boils down to knowing what the seller will accept really...
Yeah I think its important to keep it real. Its easy to jump on a moral high horse and talk about fair this and fair that, but the reality can be a stark contrast. There is a lot of investors with property in Gladstone, Port Hedland and other mining towns that have lost a lot money on deals and some of them are getting 50% of what they paid when sold. This is the reality of investing, you can lose. We all know - You make your money when you BUY not when you sell.
