Winning Property Deal Through Negotiation

Negotiating with Real Estate Agent

Master the Art of Property Negotiation This Season

With the warmer weather in full swing here in Melbourne, it is the most active season for the Australian property market. More buyers are searching for their dream homes, while sellers look to capitalise on the high demand. This dynamic environment calls for smart and strategic negotiation to ensure you make the best purchase.

I want to share proven and practical negotiation tactics you can deploy to achieve this based on my decade of experience dealing with seasoned sales professionals of global conglomerates.

Six Expert Negotiation Tips for Your Next Property Purchase

1. Know Your Market

   Do your homework. Research how much the property you are eyeing is worth, understand local market trends, and study comparable properties nearby. This preparation will guide your offer strategy and know exactly what is your walk-away price.

   
   

2. Build a Rapport with Agents

   You do not need to connect with all agents in the area but filter those who usually list the properties of your interest and price range. Make an effort to build rapport with them, especially when attending their open homes. This will establish you as a genuine and serious buyer which can make negotiations down the track smoother.

   
   

3. Understand the Vendor’s Motives

   Learn as much as you can about the vendor’s reasons for selling. Are they downsizing? Relocating? Facing financial constraints? Uncovering these motivations gives you a strategic edge, allowing you to tailor your offer to their needs beyond just price.

   
   

4. Make a Sensible Offer

   While lowball offers might occasionally work, they are rarely effective in a competitive market. Use your research to make an informed, realistic offer within your acceptable range. Combine this with appealing terms you discovered from understanding the vendor’s motives (e.g. offering longer settlement date if the vendor has not found an accommodation for themselves.)

   
   

5. Be Firm and Decisive

   Avoid lengthy back-and-forth offers. Present your best and final offer confidently and be prepared to walk away if necessary. This approach reinforces your seriousness and prevents the appearance of desperation. After all, there are more than one perfect property in the market.

   
   

6. Communicate Clearly

   Ensure your offer, terms, and conditions are clearly communicated and understood by the agent and vendor. Effective communication reduces misunderstandings and avoid delays.

   
   

Pro Tip: The more experienced Real Estate Agents are often not available during festive season for their holidays. Junior agents will handle their listing in their absence and you could end up with better deals if you can negotiate well.