Negotiating

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From: Anonymous


Hello all,

This is my first post, though I have read and learnt so much since finding this site 6mths or so ago. To all the contributors, thankyou, you have inspired and motivated us to purchase another two properties and are now negotiating the purchase of a pair of semis.

I would never had thought this was possible prior to reading Jan's book and perusing this site nightly.

My query is: Can anyone offer some tips on negotiating on a purchase price?

In hind site, I could probably have done a better job on our previous purchases, I am happy with the purchases and the price was good, but could I have negotiated a better price?

Thanks Jane
 
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Reply: 1
From: Dale Gatherum-Goss


Hi Jane!

I think that the first trick is not to be emotionally involved with the deal. Thereafter, you must be prepared to walk away from the table if you cannot get what you want. Yes, act like a spoilt child and take you bat and ball and go home.

There will be another deal equally as good, if not better, tomorrow.

Another thing that i try to do is to offset wants with the vendor. So, if they have something that is important to them, say settlement date, I'll agree to that if they will agree to something for me, say price!

This way, you set up a situation where they get what is important and you can get something in return.

I did all of these only recently and it worked.

Have fun and I'm sure that others will provide you with many more ideas.

Dale
 
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Reply: 2
From: Gail H


Check out the site www.creonline.com and click on "How to" Articles. This is an American site, and not all the info is relevant for us, but there are still some universally relevant tips.

One tip is to never mention a price first yourself. Always throw it back to the agent and ask questions such as :

Have there been any offers?
What would you pay for it?
How long has it been for sale?
Why is it being sold? etc..

You'd be amazed at how many agents will sell the vendor out by revealing that the vendor is desperate, there have been no offers and the asking price is unrealistic!

Happy hunting

Gail
 
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Reply: 2.1
From: Simon St John


Another great question is "why is the vendor asking this price"

It puts the agent immediately on the back foot and in the position of trying to justify the price.

A bad agent will say "yes...well I know they'll accept any offer...it's probably really worth X ($20,000 less!).

Cheers Simon

PS: I acknowledge the source of this tip is the book "Real Estate Mistakes" which has a few reasonable points.
 
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Reply: 2.1.1
From: J Parker


Have your limit worked out beforehand and don't go over it at any cost. Remember that it's an IP, not an emotional buy. Be prepared to walk away and start looking all over again.
It is true that bargains pop up more often than you think. You just have to look long, hard and keep your finger on the pulse.
Let the agents know that you're a serious buyer (telling them that you're finance approved and ready to buy always seems to get them interested) and stay in touch with the helpful ones.
Finally, don't be unrealistic about the price or you'll never end up buying.
Cheers, Jacque :)
 
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