The Golden Rule When Buying Real Estate
The more information a buyer knows about the vendor’s circumstances and expectations, the easier it is to manipulate the deal to their own advantage.
Therefore, one thing a real estate sales agent will never, ever do, is allow you (the buyer) access to their vendor. The vendor has the single piece of information buyers can benefit from – the reserve price.
Instead the agent will be evasive about their vendor’s preferences – with comments such as “we’ve not yet set a reserve.”
In reality, the agent knows the vendor’s ‘wish price’ from the onset.
This is why the most important key to successful negotiation is to place a buffer between you (the decision maker) and the real estate agent.
In the many articles and seminars I (Catherine Cashmore) have undertaken on negotiation, rarely – if ever - is this one golden rule mentioned.
Why the buffer?
If you show any emotional or physical reaction to a question or statement from the sales agent, you give away valuable information the agent will use to their benefit when brokering a deal.
It can be as subtle as a glance to your partner, a raise of the eyebrows or the tone of your voice.
This is one reason – as a buyer advocate - I gain a significant advantage when vendors attempt to sell their own property.
Negotiating directly with a vendor enables me to unearth far more information than a well-seasoned estate agent would ever permit.
When I negotiate on behalf of buyers however, the sales agent is granted no such advantage.
For example, the question I want to know is what amount of money will buy the property “today?”
If the agent starts to grow attentive when I ask if his vendor will accept a certain amount – say, for example $850,000 or $860,000 - it gives me a better assessment of the vendor’s likely reserve - and it does that without compromising or disclosing my client’s position.
Any information I provide the agent can be manipulated to your advantage when brokering the deal.
The idea for you is to wrest control into your hands.
There are numerous ways to do this.
Negotiation is about more than price alone. Negotiating settlement dates, conditions on the contract, the deposit amount and so forth, are all useful tools to employ. However getting someone to negotiate on your behalf is the most powerful.
As the saying goes – “a man who is his own lawyer has a fool as a client.”
Don’t be that fool.
Please contact us for more information.