22 Give the vendor a choice

In a private treaty sale, you might want to present two offers. The first would be the price the vendor is seeking, but with stringent terms and conditions in your favour as the buyer. The second would be a lower price, but with few to no terms and conditions in your favour. Vendors often like having a choice, so if it’s feasible give them one.

21 Contain your emotions

Auctions are designed to whip up as much emotion among buyers as possible. It is easy to get carried away in such an environment. Therefore ensure you remain unemotional and detached when bidding at auction.

20 Don’t get sucked down the rabbit hole

When bidding at auction, set your price limit and stick to it. Auctioneers have a knack for making each bid sound like it is only a few extra dollars more, and that paying extra will be worth it in the future. However, the bank may not agree, which means you might have to find an extra $50,000 yourself, or even default on the contract. So don’t allow yourself to get sucked down the auction rabbit hole.

19 Watch out for underquoting

Underquoting is when an agent advertises, or advises a buyer of, a price that is less than the vendor is willing to consider a genuine offer. The tactic is sometimes used to get more buyers interested in the property. If you have done solid homework of your own, you should be able to avoid falling for it. But it pays to be aware of the practice.

18 Make use of building and pest inspections

Getting building and pest inspections done before formal negotiations begin gives you additional information. The more you know about a property and its condition, the better a negotiating position you are in. Any issues with the property can be used to leverage a better deal.

17 Quiz the agent about the vendor

Question the selling agent to help you find out as much as possible about the vendor, their needs and their circumstances. Asking the agent what an ideal offer would look like to the vendor, while keeping the price as a side issue, can often give you a good indication of what terms it might take to get the deal over the line.

16 Be honest about your skill set

A realistic assessment of your negotiation skill set is crucial. If it’s lacking, then make the effort to study some techniques or skills you can use, and practise on someone else. This might include assertiveness training, learning about auction rules, and/or talking to your conveyancer about contracts.

15 Always submit your offers in writing

It might seem to be stating the obvious, but ensuring that you put an offer in writing formalises the offer and creates a valuable hard copy record of the negotiation.

 

Think like a buyer’s agent
Coming to a win-win outcome is the goal of any negotiation as no one likes to feel they have been done over, agrees Property Mavens director Miriam Sandkuhler. However, to ensure they get such an outcome, she suggests investors should adopt the mindset of a buyer’s agent.

14 Pitch your offer at the right level

In private treaty sales, when there is a closed tender or a ‘best offer by 5pm Friday’ situation, put in your best and final offer as you won’t get a second bite at the cherry. These scenarios are a balancing act, so try to pitch your offer at the right level, taking into account your market and vendor knowledge.

13 Don’t be negative

Avoid trying to put a negative spin on the property. Likewise, don’t act disinterested if you are interested. An agent won’t take you seriously if they don’t think you like the property.