Negotiating 101


From: Sim' Hampel

I was sure there was a discussion a while back on the topic of what questions are good to ask during negotiation ? Problem is, I can't find it. Time for a new post I guess...

Can anyone suggest some good questions that can be used during negotiation with an agent... those types of things we can ask that give us a little more insight into the motivation and true needs of the vendor and help us achieve that win-win deal.

For example, there are some obvious questions that tell us the basics, such as:

- When did they buy the property ?
- Why did they buy ?
- Why are they selling ?
- Is it owner occupied or rented out ?
- How much did they pay for it ?
- Did they make any improvements ?
- Have they already bought something else ?
- What price will I have to pay to have them take it off the market ?

What other questions have people found effective ?

I know for example that The_Wife is an expert at this stuff and has developed a real skill in working out what the vendor's true needs are.

What I want to know is what are the questions that can lead to this enlightenment ?

I have learned in selling Information Technology solutions that the most effective way to convince the customer that you can help them is to first identify their business pains, what is it that they are having problems with... and then propose targeted solutions which could ease those pains.

So how do we find out from an agent what "pains" the vendor is experiencing that are causing them to sell (everything from the "we want to upgrade our house" pain, to the "we think it's time to cash out" pain", and the "I'm desperate for some money to get me out of this hole" pain) ?

Anyone care to share some of their experiences ?

(PS. yes, I've read Herb Cohen !)

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Reply: 1
From: Property Investor

Hi Sim,

I will add some more that I would normally use in a negotiating situation.

-How long has the property been on the market for?
-What offers have been made?
-How old is the property?
-How many owners has the property had?
-What do the owners do for a living?
-Size of household?
-How old are the kids, if any?

Sim, you may want to add observations to the post that may help people negotiate with vendors/estate agents.
For eg:

-Look for photographs (This way you will find out the age and size of family).
-Look in wardrobes for clothing (Clothing do tell a story of the kind of person you are dealing with and also if there has been a break up, you will probably find the male or the female's clothes missing).
-Look for signs of pets in the backyard, like hair, droppings, food, spots of discoloured fencing, etc. (This is particularly good when the property is still leased and you could use this as a negative point)
-Finding as many faults as possible with the place even if minor and start quoting figures as how much it would cost you extra to fix. (This I find ideally when owners are present and I do it in a very soft like thinking to myself tone which in turn makes the vendors feel slightly guilty in a way about the situation and thus making an opening for me to get a reduced price automatically)

Please find that this last point has worked for me on all occasions when either buying properties, businesses, cars, etc.

I hope other people add to this which in turn will make some of us come back and add further.

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Reply: 1.1
From: Rick Gibson

One method I have heard used (at a Brad Sugars Seminar) is to find the most personal things you can find in the house and include them in your offer.

eg - family portrait
- tv or vcr
- clothes in the wardrobe

Then after the vendor has cooled down after seeing your ridiculous offer then say well without them we cannot possibly offer the original price.

Just another tactic I guess, not sure how well it works though

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Reply: 2
From: Empy 555

In regards to negotiating another trend is to use professional negotiators for you.

There are a couple of very good firms in Sydney that specialize in property negotiation on behalf of clients.

These groups can often save you 1000s and 1000s of $ of your purchase price because they know the right buttons to push and how to get a good deal.

Usually their fees are low say around 2% and often this fee is insignificant when compared to the savings they can generate for you.

The companies that spring to mind are

PK Property Negotiations 02 9904 3444

Property Buyers Network 02 9025 3555
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Reply: 2.1
From: Sim' Hampel

Yeah, but then we wouldn't develop our own skills, would we ?

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Reply: 2.1.1
From: Empy 555

We don't cut our own hair.....usually...nor do we take out our own appendix !!


good point about skills

however one of our skills to develop is how to get a good deal done !!

and you can learn off these guys as well......and if they save you $$$$ that s good to !

don't you think ??
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From: DB Bear


Can you explain the Brad Sugars technique with the personal effects.

DB Bear
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