42 It’s not just about dollars and cents

Remember that negotiating the right purchase conditions could get the seller to rectify any problems at their cost prior to settlement. Careful wording of conditions may also allow you to abandon the deal should issues come to light that detract from the investment potential of the property.

41 Factor in additional purchasing costs

Make sure you have factored in all additional purchase costs (eg settlement costs, mortgage insurance, stamp duty) when preparing to make an offer. A clear idea of the extra costs that come with the purchase will ensure that you know how much you can afford to negotiate without getting yourself into trouble later on.

40 Focus on other bidders

Once you’re a bidder at an auction, the selling agent’s team will often target you to urge you to go up. Don’t pay attention to them. Before the auction, discuss as much as you like with the agent and consider their advice and information. But during the auction all you have to do is beat the other bidders, so that is where you need to focus, not on the agent.

39 Size up the competition

Before an auction, take note of other potential buyers at the open home. Try to size them up in terms of what they might offer. Do they look like developers or mums and dads? Your offer will need to be the most attractive to win. Therefore, if you can estimate where the other buyers are likely to place their bids, you stand a better chance of arriving at the right number.

38 Make a cash offer if you can

If you are in a position to make a cash offer, do so. This can often sway negotiations your way when you are up against other offers. However, ensure that the price you offer is not substantially below other offers. Also, make sure you read the situation correctly: if the sellers are not in a hurry, they are less likely to be swayed by cash offers.

37 Dawdling can be fatal

When there are no other offers you may gain the leeway to negotiate longer for a better price. But never dawdle, as another buyer could turn up at any time and whisk the property out from under your feet.

36 Get the nitty-gritty on other offers

If you have built some rapport with an agent, find out all you can about the other offers expected or already made. If there are many other offers, make sure to put your best offer forward first. This is because often an agent is unlikely to come back to you but will recommend the highest offer of many.

35 Close on a positive note

Always end negotiations with a reassuring close. For example: “OK, great. Please keep me posted so I can organise a time to come over and sign the contract”, or “OK, great. Can you please give me your details so I can put the deposit into your account?” This indicates you are serious, committed and the easy option. It also shows that you assume the deal will take place.

 

Taking care of business
When it comes to investment properties, keeping a clear and businesslike head on your shoulders is crucial in negotiations. Property Wizards director Liz Sterzel offers up some of her favourite negotiating tips to help achieve this.

34 Work on numbers and logic

If the numbers work, and the property makes sense, then what’s stopping you from closing the deal? Too many investors will take the emotional decision over the logical decision. However, it is the numbers that lead the way and never lie. That is why knowing how to accurately assess what is happening in the market and the value of a property is essential.

33 Don’t be a commitment-phobe

It is not uncommon for people go through the thrill of the negotiations and then get cold feet at the end. If you cannot commit, it is a sign of disrespect, and you will lose credibility. If the other party you are dealing with shows no level of commitment, then perhaps you are being too generous.