As buyers’ agents, part and parcel of our role involves negotiating the very best possible price and terms outcomes for our buyers. Sometimes this is harder than it appears, as we need to not only deal with some skilful selling agents, but unrealistic vendors at times. Sadly, most of us believe that our property is worth more than the market will bear, and coming to terms with “market reality” can be a bitter pill to swallow at times. Knowing what comparable properties have sold in your area is an absolute must when preparing to buy and/or sell and an effective agent can be the key here in determining the right price for the property.
When it comes to negotiating, experienced buyers’ agents are well-versed in being able to objectively assess and negotiate on a buyer’s preferred property. As we purchase an average of one property every 7-10 days for our clients, our field experience speaks for itself. However, negotiating can be an art at the best of times, and it’s important to understand as much as possible about the property, the vendor, the circumstances of the sale and the demand/supply level for the particular type of property that is being purchased as well as the likely value in the current market. One of Australia’s best-known selling agents, John McGrath, had this to say about buyers agents and negotiating:
“Buyers’ agents can give you a significant advantage in negotiations. A skilled negotiator will save you serious money – and in most cases, a lot more money than you’ll be paying them in fees. The psychology of negotiation is quite complex: it’s not just about getting the best price, but also about creating the perception that your opponent has achieved the best result. Since most Australians buy property so rarely (usually only once every five years or so), very few have had enough experience to become skillful negotiators. A buyers’ agent can talk to the selling agent with equal market knowledge and negotiation ability. They can help you structure an offer that gets you the lowest price while meeting the objective of making the vendor feel like they’re also getting a good deal. If the property is selling via auction, they can bid on your behalf, using their experience and objectivity to give you the best chance of securing the property without going over your budget”
We couldn’t agree more and consider comments by someone as well-respected and experienced as John supportive of the role that we play in the current real estate service industry.