- Price is not the only factor in a property negotiation, writes Bushy Martin
- If you find out what the seller really wants, then anything could be up for grabs
- Towards the end of a quarter or year, the agent may also be motivated to sell
In his tenth article in the series, investor, founder, author and media commentator Bushy Martin discusses the science and art behind property negotiation.
In the previous pieces, the topic was introduced by explaining how you may need to change your outlook, build good rapport by using Mirroring and Labelling techniques and the perceived power position, which you may feel is tipped against you, why cash is king how to know the prevailing conditions, that negotiation ‘starts with hello‘ and when to deploy the knockout offer.
An important thing to remember is that negotiating on the purchase of a property is not all about price.
You need to find out what the selling vendor really wants and what’s really important to them. Then, everything is up for negotiation, from the timing, to the conditions, to you name it – everything is always up for grabs.
The right questions
It takes some digging, and buyers agents are experts at this.
It’s about asking the right questions in the right order at the right time in the right way to find out exactly what the seller wants and needs, because it’s not always just about selling for the best price.
For example, if there is a divorce involved or the vendor has left the state to move to a new job, then there could be more motivation to have a quick settlement time frame
Alternatively, someone may have a real preference to have the perceived security and certainty of an unconditional contract, rather than anything that has conditions like subject to finance or subject to a building inspection.
This means that in some cases, the perceived certainty of an unconditional contract at a lower price might be more attractive to a seller than a higher price with conditions attached.
In other cases, the seller may be interested in the early release of your deposit to enable them to help secure their next property purchase or whatever they intend for the funds.
It is also worth considering the real estate agent’s motivations.
As commission-only selling agents, they are often under pressure at the end of the month, end of the quarter or end of the year to reach their sales targets. So, they may be more motivated to make a sale happen in your favour at these times, as it affects their ranking in the office and their cash flow.
As the famous author of The 7 Habits of Highly Effective People, Stephen Covey, famously said, ‘First seek to understand and then be understood’.
This is very important in negotiating the purchase of a property.
Find out what it is that they want so you can create a win/win/win scenario, as well as creating other valuable negotiation points that are away from straight price. This also means that you reduce competition with other potential buyers, as you aim to satisfy the seller’s total needs, not just how much they are going to get in dollar terms.
Next article: Timing & Finale