An important part of purchasing any large item requires the skill of negotiation. Completely correctly, it can save you thousands. If not done correctly, can cost you money or even the sale as the seller may turn to another interested party.
Negotiation is a highly skilled attribute. Many don’t like to negotiate as it can feel like confrontation, or they simply do not know how low to go, what to say or how to do it. Often, negotiation is more than money. There are a range of terms and conditions that can be negotiated in your favour!
Negotiation is all about win-win. Both parties have to win as a result of successful negotiation. If you negotiate too hard, the seller loses and there’s reduced chance of the sale going through. The same can be said in the reverse. If the seller does not negotiate reasonably, they lose as you won’t purchase. So with the focus on you, here are some quick tips on negotiation for a win-win result:
Experience counts: The party with the most knowledge will increase their chance of negotiating better price and conditions. To successfully negotiate, you must invest your time to complete thorough research on the market, prices, planned infrastructure etc. will all influence your asking price.
Power to the purchaser: Your negotiation power increases dramatically when the seller understands that you are likely to purchase more than one property. It’s the basic principle of the market. Negotiating on a number of products, instead of one, makes you a more attractive and ongoing client. All business owners know that ongoing customers are more cost effective to manage, enable them to plan around larger/regular purchasers and can become the backbone of their business and therefore may offer reduced prices or more agreeable terms.
More! More! More! Another skill is to convince the seller that you have more options than they do. This gives you more power and you look like a more inviting prospect. Power in negotiation goes to the person with the most options.
Agents will often tell you they have other buyer’s interested or better offers than yours, but they are simply applying this same pressure tactic on you.
Team play: If the prospect of negotiating scares the willies out of you, or you don’t have the time or know-how to undertake thorough market research, or you do not have the purchasing power to negotiate on more than one property, then its time to form a team for greater negotiation power. We’ve been negotiating and purchasing properties, full time in Australia for years. We have purchasing power, builders and developers love us as we provide them with regular, ongoing business.
Whether you are a beginner or an experienced property investor, by using these negotiation tips, you’re bound to negotiate a better price and conditions on your next investment property. If you want to get a better deal when purchasing investment properties, give us a call and let us negotiate for you! We’re independent – we’re not selling you our properties, but opening up your options to purchase your own property, [which we’ve identified from our independent research] as part of a buying group in with friends.
Strong foreign investment, low interest rates and a range of other positive signs, its the perfect time to speak to Property Friends and see if property Investment is the right way to improve the health of your financial situation!
Property Friends is a specialist Property Investment Advocacy that has been operating for the last 13 years on the basis of 3 principles: Trust, Community & Progress. www.propertyfriends.com.au (03) 9758 5331