There are some simple ways to get your offer accepted and to negotiate effectively, however many investors are not aware of them, explains a real estate author and buyer’s agent.
EPS Property Search’s director, Patrick Bright, said that investors trying to secure the property they currently have their mind set on should consider attached a 10% deposit cheque to a signed contract.
The powerful incentive of the signed check should leave a reluctant vendor with a powerful incentive to accept, even if the offer is below the asking price.
“It’s a very persuasive strategy,” said Bright.
“The vendor’s looking at the cheque filled in for the 10% deposit and it can be extremely hard to give back,” he said.
There are also a number of negotiating tips that will assist you to push that offer across the line.
Bright provided his top four tips:
1. Never disclose your budget to the selling agent
Once they know your budget, the selling agent will do everything they can to extract every cent out of you, especially if they haven’t reached the reserve or the vendor’s bottom line yet.
2. Never let the agent see you fall in love with the home
A few rules I tell my clients before we inspect a property is not to talk about the property until we leave. Don’t make comments or talk about the property while we’re there and don’t answer the sales agent’s questions. You could save yourself several thousand dollars by just keeping quiet.
3. Always put your offer in writing
By law, the agent must communicate all offers to the vendor but this doesn’t always happen especially if the agent considers the offer ‘too low’. If you put your offer in writing there’s much less chance of the agent putting it to one side. If there’s written evidence of an offer it’s easier for the agent to get caught out if they don’t pass the offer on to the vendor.
4. Never let the agent know if you are motivated to buy
When you’re going to open homes and talking to sales agents on the phone always play the indifferent buyer. Never let them know what your motivation is to buy. If they know you’re in a tight situation they’ll use that information to negotiate with you, just as you will use your knowledge of how motivated the vendor is to sell to your advantage. If you’re buying property with your partner, it’s a good idea to let one person do all of the talking with the agent.
This article first appeared on Property Observer.