3. Assess the sellers situation
Not everything in life (and in real estate for that matter) is negotiable, but experienced negotiators can secure top-notch deals in any market. In the current rising property market, those who can negotiate can still pick up some good deals. Good negotiators will track down vendors that need to sell and are motivated to sell. I call them D (distress) vendors who are Desperate to sell due to Death, Divorce, Debt (or financial hardship), Deadline, Distance and Disaster motives. Skilled negotiators ask many why, what and how questions to find D vendors willing to negotiate. Discovering as much as you can about the vendors position provides real insight into whether the property is worth bargaining for.
Ask questions such as:
• Why is the vendor selling?
• Have they purchased another property?
• Which settlement terms are preferred?
• How long have they owned it?
• Is it an investment or owner occupied?
• Is it tenanted?
• Have you had any offers?
• How long has it been on the market?
• Is the vendor testing the market?