It’s a time-tested strategy to buy low and sell high. But how do you nab a good deal in a hot market like the one we’re in now? Miriam Bell quizzed a panel of experts for their best negotiating tips
Before the negotiating starts
When embarking on a purchasing process – which will involve negotiation – investors need to make sure they have all the required ducks in a row before they get started.
This means they need to have:
- done comprehensive research and due diligence on the area where the property they are interested in is located, and its market
- arranged their finance and ensured they have pre-approval in place
- consulted their accountant or financial planner
- decided on the entity structure they want to purchase the property with (eg a trust, an SMSF, or their own name)
Once these elements are all in order, the negotiating fun can begin…
Getting to yes
Propertybuyer.com.au CEO Rich Harvey says all too often people forget that negotiating is actually about striking a deal. Both the buyer and the vendor want to achieve a mutually acceptable outcome.
The negotiation process should assist both parties to achieve this in a way that leaves everyone satisfied. Harvey, who describes negotiating as more of an art than a science, gives the following tips to help you through the process.