12 Agent communication is key

While it is the vendor selling, it is the agent you deal with and who can give you feedback on what the vendor thinks about an offer. Therefore always be clear, concise and straightforward with the agent.

Questions to ask agents

Why is the vendor selling?
Knowing the specific reason can help. For example, if a vendor is selling but hasn’t bought their next home yet, you might offer them longer terms so they have the flexibility of staying in their home while they find their next one.

How long has the property been on the market?
The longer a property has been on the market, the more willing a vendor should be to negotiate an asking price.

How did the vendor decide on the asking price?
This is particularly important if the price is not realistic or reflective of market conditions.

What do you have to substantiate that price?
If the information you are given is not comparable to the market research you have done, you can use that in negotiation.

Have there been any other offers?

What do you think it is going to need to get the deal done?
Selling agents want to complete deals. Asking this shows that you are serious about the deal.

You can also ask what you can do to beat an existing offer.

11 Understand the auction process

Beware the emotional, pressure-cooker environment of auctions. It is easy to get caught up in the atmosphere. So understand how the auction process works, and also that auctions don’t allow for cooling-off periods.

10 Conduct a mini auction with yourself

Before an auction, establish the top price you are willing to pay. Then run through a ‘mini auction’ with yourself first. This means that, mentally, you should be more practised at sticking to your limit.

09 Be prepared to meet the market if need be

At the end of the day, if a property is an inherently valuable one, don’t be afraid to pay a fair and reasonable price to secure it quickly. Making it clear you are willing to do so is also a good thing to do.

08 Look at the situation from the vendor’s perspective

Identify the vendor’s motive for selling. Then appeal to the vendor’s specific needs in order to negotiate a fair deal. For example, making an offer based on a timeframe suited to the vendor can secure a more affordable price tag.

07 Use conditions strategically

Waiving the cooling-off period entirely is always a strong tactic. In competitive situations, it can pay to make your offer with a signed contract and a 5% deposit cheque attached.

06 Price is not the only negotiating factor

Negotiate on terms and conditions, as well as price, to come to an agreement. For example, you might suggest a 30-day closing period and a 5% deposit as opposed to the standard 40 days settlement and 10% deposit. From a vendor’s perspective, the offer with the least conditions attached to it (eg a 10% unconditional offer with no cooling-off period) is the most reasonable.

05 Reaching agreement is the goal

Ideally, negotiation should achieve a win-win outcome. To achieve that you need to reach an agreement with the vendor. Both you and the vendor will have certain expectations, so generally you will have to meet somewhere in the middle. But rejections and counter-offers will occur along the way. That’s the way negotiation works.

04 If you are genuinely interested, show it

Tell the agent you like the property, but don’t make promises. Saying you are going to put in an offer and then not following through is like the boy who cries wolf. Always be open, honest and transparent about the extent of your interest.

03 Negotiation starts the moment you open your mouth

An agent is sizing you up from the word go. They are qualifying you to ensure they don’t waste time and effort on someone who is unlikely to make an offer. Bear this in mind when talking to agents.