May 26, 2020

8 Tips for Negotiating with Real Estate Agents

It can be intimidating to negotiate with a real estate agent to get the results you want. After all, they are the professionals – what do you know compared to them?

The good news is that there are some simple things you can do to improve your chances of getting the best outcome from a negotiation. Here, we have put together Lauren Moore Property’s top 8 tips to help you come out on top.

1. Be prepared

Before entering into a negotiation, it’s worth preparing. This means researching, brainstorming, mentally preparing and planning the steps you will take, as much as possible. This will give you the skills and confidence you need to succeed. Which leads to our next point…

2. Know what you want

If you are unsure about what you want from a negotiation, it’s easy to get knocked off course. Clearly identifying what you want – and what you don’t want – will help you stay on track.

3. Get your finances in order

Getting pre-approval for your home loan will put you in a strong negotiating position. It will mean you are ready to take the next step right away if everything falls into place. But remember – this does not mean rushing into any decisions. Being ready can give you leverage, but it also means you have the flexibility to say no if the negotiation does not go your way.

4. Know the market

This will give you the knowledge necessary to be informed and credible when negotiating with an agent. Spend some time watching the market to understand when prices increase, decrease or stabilise, and why. You will then be equipped to use this knowledge to your advantage.

5. Identify the property’s drawbacks

Brainstorming a list of the negative aspects of the property before the negotiation will allow you to use them to your advantage. Is there an issue with the property that the seller is underplaying? Is there something about the home that you are willing to accept but other buyers may not? Identifying this can bolster your negotiation arsenal.

6. Understand the seller

To make ground in a negotiation, it helps to understand the seller. Although there are differences between all sellers, generally there are factors beyond simply getting the best price. This gives you an opportunity to be smart. Find ways to negotiate terms that fulfill your needs while offering terms that will be favourable to the seller, such as a shorter settlement period.

7. Be willing to walk away

When negotiating, you should always be willing to walk away. If you are not prepared to walk away, you cannot negotiate from a strong position and you are at risk of settling for outcomes that fall short of your goals.

8. Get support from a Buyer’s Agent

The advice of a quality professional is invaluable for all homebuyers. Agents are experienced negotiators who see properties bought and sold every day, so seek their advice and recommendations and make sure you take them into account.