HELP: buying a house -- need negotiation techniques
Hi, folks, would like your thoughts on buying negotiation techniques.
Saw a property I liked very much. First open was last weekend & auction in 3 weeks time. I was quoted a price guide of “over 950K”.
On the weekend I did heaps of research in the area using RPDATA, and based on the sales around the area etc etc, my valuation is for around 1.1M.
Now, my question is: what’s the best strategy for securing this property and keep it under my estimate?
I am thinking:
Strategy #1: give an offer of $1.05m on Thursday morning (after the 2nd open house on Wednesday) and set a deadline of 6pm Friday evening for a definitely response. Then if they say no, I will say “I’ve done my bit, how much the vendor would like?” if they say “will go to the auction” then I will offer a reduced settlement period of only 2 weeks. If still “no” then will keep quiet then hope they will come back to me with something, in the end I can maybe meet them in the middle but still below 1.1M
Strategy #2: ask a friend to offer a low bid of $980K, and I will then come in with a killer offer of $1.08m – a 100K premium, then hoping the vendor will think they got a deal out of me to force a quick sale.
Well, in short I am really bad at doing this, but trying to not go to the auction as you’ll never know who you will be up against.
What do you think?
I really need some wise minds.
Cheers,
Mr.Fish
Hi, folks, would like your thoughts on buying negotiation techniques.
Saw a property I liked very much. First open was last weekend & auction in 3 weeks time. I was quoted a price guide of “over 950K”.
On the weekend I did heaps of research in the area using RPDATA, and based on the sales around the area etc etc, my valuation is for around 1.1M.
Now, my question is: what’s the best strategy for securing this property and keep it under my estimate?
I am thinking:
Strategy #1: give an offer of $1.05m on Thursday morning (after the 2nd open house on Wednesday) and set a deadline of 6pm Friday evening for a definitely response. Then if they say no, I will say “I’ve done my bit, how much the vendor would like?” if they say “will go to the auction” then I will offer a reduced settlement period of only 2 weeks. If still “no” then will keep quiet then hope they will come back to me with something, in the end I can maybe meet them in the middle but still below 1.1M
Strategy #2: ask a friend to offer a low bid of $980K, and I will then come in with a killer offer of $1.08m – a 100K premium, then hoping the vendor will think they got a deal out of me to force a quick sale.
Well, in short I am really bad at doing this, but trying to not go to the auction as you’ll never know who you will be up against.
What do you think?
I really need some wise minds.
Cheers,
Mr.Fish
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