Remember as a buyer the REA doesn't work for you. How many times have I read this or even said this myself, but really is this true?
REA's know they need to get listings and this is when they put on the charm with the vendor, but seriously if they can't turnover the properties they are sunk.
Remember as a buyer you are not under pressure.
Say what???
You heard it right. As a buyer you hold the cards, not all of them but enough of them to be in control of the negotiations. Remember you can walk away, only the vendor is committed to selling the property. Now don't get me wrong here, the vendor does not have to accept just any offer but you will be surprised by just how flexible some of them can be.
The REA will try and get you to make a higher offer, but unless you have your heart set on the property then you negotiate and if it doesn't work for you, you can walk away.
This is not the same for the vendor. Sure they want to sell for the highest price but they frequently rely on the advice of the professional they have hired to sell the property. However let's not be under any false assumptions here, this professional is not strictly working for them. In fact they have two or three hats, and have to balance all interests in order to get a sale.
Firstly they have been engaged under contract by the vendor to sell the property this is an obvious relationship.
Secondly they must work with buyers in order to get offers and sell the property. This is where they will use their skills as a negotiator to get the highest price.
And finally they have sales targets to meet, this is regardless of whether they work for themselves or other people. They have to sell in order to keep food on the table.
So a REA alligiance is spread pretty thin. This is one of the reasons they can get a bad name because Joe Public doesn't really take the time to understand the complexities of the relationships.
If the REA only works for the vendor why do they apply so much pressure on them during negotiations? Sure they put some pressure on the buyer by implying that they may miss out, but there is only one party who he knows has a reason for wanting the sale to happen.
The REA does not work for the vendor, nor does he work for the buyer. At the end of the day they have a contractural obligation to market the property on behalf of the vendor, and they will sell the property for the highest price they can while meeting the other targets of cashflow and turnover.
As a potential buyer you are the only person who can assist the REA to meet their targets. You can be their next best friend. They don't need to know how much you really want the property. You need them to know you are willing to walk away, that your offer is only valid for a limited time, and that you have other properties which you are looking at if this one doesn't go ahead.
This makes you the main player, gives you the power in the negotiation and gets the REA working for you.
Regards
Andrew
REA's know they need to get listings and this is when they put on the charm with the vendor, but seriously if they can't turnover the properties they are sunk.
Remember as a buyer you are not under pressure.
Say what???
You heard it right. As a buyer you hold the cards, not all of them but enough of them to be in control of the negotiations. Remember you can walk away, only the vendor is committed to selling the property. Now don't get me wrong here, the vendor does not have to accept just any offer but you will be surprised by just how flexible some of them can be.
The REA will try and get you to make a higher offer, but unless you have your heart set on the property then you negotiate and if it doesn't work for you, you can walk away.
This is not the same for the vendor. Sure they want to sell for the highest price but they frequently rely on the advice of the professional they have hired to sell the property. However let's not be under any false assumptions here, this professional is not strictly working for them. In fact they have two or three hats, and have to balance all interests in order to get a sale.
Firstly they have been engaged under contract by the vendor to sell the property this is an obvious relationship.
Secondly they must work with buyers in order to get offers and sell the property. This is where they will use their skills as a negotiator to get the highest price.
And finally they have sales targets to meet, this is regardless of whether they work for themselves or other people. They have to sell in order to keep food on the table.
So a REA alligiance is spread pretty thin. This is one of the reasons they can get a bad name because Joe Public doesn't really take the time to understand the complexities of the relationships.
If the REA only works for the vendor why do they apply so much pressure on them during negotiations? Sure they put some pressure on the buyer by implying that they may miss out, but there is only one party who he knows has a reason for wanting the sale to happen.
The REA does not work for the vendor, nor does he work for the buyer. At the end of the day they have a contractural obligation to market the property on behalf of the vendor, and they will sell the property for the highest price they can while meeting the other targets of cashflow and turnover.
As a potential buyer you are the only person who can assist the REA to meet their targets. You can be their next best friend. They don't need to know how much you really want the property. You need them to know you are willing to walk away, that your offer is only valid for a limited time, and that you have other properties which you are looking at if this one doesn't go ahead.
This makes you the main player, gives you the power in the negotiation and gets the REA working for you.
Regards
Andrew
