Price negotiation tips/tricks?

Has anyone got any great tips/tricks for negotiating prices with real estate agents in a private sale situation? You always hear stories about some of the tactics real estate agents use, but are there any good tactics buyers use?

Look forward to hearing your views!!

Regards
Property Buying Guide

 

Tell them that they are more likely to get a sale by lowering the price expectations of the seller rather than getting the buyer to raise their price...



But I'm sure they doing that anyway.

In all seriousness, that I'm experience with buying (just bought the 1 IP) and am in the process of selling at the moment - I think the key in a buyers market (like I think it is at the moment - though may depend on location) is just to low ball early - let them marinate on that low offer for awhile, it will help reduce sellers price expectations.

Another thing might be saying something like, you think the place is worth X, but because A, B and C are wrong with it I need to knock off a big chunk in the price. Once again gets the seller to reassess their price expectations.

At the end of the day, the agent is really on your side when it comes to reducing seller price expectations, so help him out with it by giving him realistic reasons he can take to the seller to reduce their price.

 

When I look at a property, I try not to find out what the agent says its worth. So if I hear an agent telling me its worth $x or it has this or that I cut them off as quickly as possible. I make up my mind first, then ask the agent what its on for etc - don't let them set the paramters, you set them.

 

These are great tips, thanks guys!

 

Depending on where you're buying there is very little room for negotiation, at least in my experience of Sydney right now. It's a sellers market in many parts, especially the sub $1m price bracket.

However, having said that, agents will generally take more notice of financed buyers (even better if they can sign unconditionally) who are organised and ready to act. Sometimes a lower price can be obtained by being first to sign on the dotted line. Line up all your ducks first.

 

I went to an open house yesterday. The house has been on the market for a while (tow months at least) and it's a multilisting property now. The advertised price is 420k. Guess what, the salesman at the open house told me that somebody had made an offer for 435K but they hadn't signed the contract yet. He wanted me to make higher offer straight away. I said to him that the advertised price was 420k and why he wanted me to pay more. I also asked him if he was doing "auction" during open house time. He then changed his tone and said I could make an offer for 420K. I said let me think about it and left. He then rang me but I didn't bother to answer his call because I didn't want deal this kind of dishonest unethical dodgy salesman. I didn't like the property any way.

 

I've bought via private sale a number of times and my approach is very simple: in my first offer, I will offer $5K less than my absolute top price because I'm not interested in mucking around but acknowledge the agent/vendor's egos may need some stroking.

Anytime I make an offer, I sign the contract and provide a cheque for 10% as the deposit. I remain as casual and relaxed as possible and say that my offer is open for a week. Agents, of course, flap about almost straight away and insist that they have another, higher offer and that I will need to hurry to beat it. My response is always "if they have a higher offer, they should take it." If the agent comes back for another try, I may use the extra $5K in reserve, depending on my sense of whether it's needed to get the deal over the line.

Never do I trust a word any agent says and never do I get emotionally attached to the property. There are plenty of fish in the sea!

Good luck!

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I DIY manage with Rentwise.