2. Know Your Price Range
Knowing how much you can spend and shopping within this figure will lower your time on market and make sure you’re creating opportunity to purchase.
This tip will increase your chances of becoming a buyer rather than a browser. Speak to a mortgage broker to work out your buying capacity.
3. Know The Properties Market Value.
Buyers tell me, selling agents quote low during the marketing campaign, then come auction day buyers are gob smacked at the high closing price.
I call this the ‘forgetful real estate agent’ The agent quoted a high selling range to the vendors, trying to win the business, yet somehow forgot the price when speaking to buyers just weeks later.
To avoid getting effected by the ‘forgetful selling agent’ syndrome it’s important to know what a comparable property has sold for. For instance, how much has a property with comparable specs (house and land) sold for in the last 3 months within a few kilometers of the listing? Once a buyer understands price they no longer need to rely on an agents guidance on this issue.
4. Understand The Vendor’s Motivation For Selling.
This is useful when negotiating terms of settlement or getting a deal across the line. Consider the vendor looking at two offers of the same price, yet one offer has a 6-month settlement term and the other has a regular 60 day settlement.
The long settlement allows the vendor time to finish building his new house, access much needed deposit funds or organize bridging finance. In this case the seller could even accept a lower price if his unique terms are meet.
Every sale is unique and it’s vital to understand why the seller is moving out of the property to tailor an attractive offer.
5. Timing The Offer.
A vendor is always more willing to negotiate on price when selling time on the market is longer than normal. You can spot these types of sales by watching the market and not following the buyer crowd. Usually this type of property has had a few failed auctions, has changed selling agents or has had an average marketing campaign.
6. Resect The Vendors and Offer Your Story.
Selling property is an emotional process that most vendors do not enjoy, it pushes people out of their normal comfort zone. Hence trying to bring a price down incorrectly. This can often bring vendor’s walls up.
To defuse this situation it’s wise to offer a story with your price. If you were in the vendor’s shoes which story would you relate to? A young couple that is getting married, buying there first home who love the seller’s property, they have dreams of making the property a home and can only afford a certain price.an investor that’s buying his third property that’s considering putting tenants in for the life of the property, monetary gain at the vendors expense being the only driver of the offer.
7. Show Interest In The Property So The Agent Know.
Most buyers assume showing a disinterest in a property protects them from the Jedi powers of the real estate agent. Agents are a bank of knowledge when it comes to understanding why the property is on the market.
If the seller has a need of an urgent sale it’s important you’re the buyer that’s front of mind when the agent picks up the phone. So tell the agent you have you loan approval and deposit ready, mention your feelings about the property and to call you if any offers are on the table.
More importantly if there is a need for an urgent sale. You will be surprised at the opportunity this can create when the agent tells a vendor about you.