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Negotiate Your Way in a Buyer's Market

David Nitschke, Principal of First National Real Estate Pope Nitschke says achieving the best price in the current buyer’s market is tricky for sellers, but offers some negotiation advice that may help.

“Selling or buying a property represents one of the biggest financial transactions in a person’s lifetime, and achieving the right price is difficult in normal circumstances, let alone when the market favours one over the other,” Mr Nitschke said.

“But there are some things that can be taken into consideration when negotiating that will make all the difference.

“First and foremost, vendors selling in a buyer’s market must carefully and realistically assess their price expectations, making sure they position their property competitively against others so they can meet market demand.

“It is also wise to remember that when you are dealing with buyers, they have feelings and emotions, just like you.”

David’s top 10 negotiation tips, include:

  1. Remember the concept of win-win.  Both parties need to feel that there has been give and take on both sides of the negotiation.
  2. Do it quickly.  A protracted, drawn out negotiation process can cost thousands in the wash up.
  3. Get the price right.  Overpriced properties deter home buyers from making offers.
  4. Respect the other side.  Understanding and empathising with the other side can be a very powerful tool in negotiating and helps establish rapport.
  5. Offers should be in writing. This helps avoid misunderstandings and additional stress.
  6. Be willing to compromise.  Never reject a first offer out of hand.  Focus on the top priorities and don’t let emotions overrule sensible judgement.   Always make a counter-offer and be careful not to make unreasonable demands or issue ultimatums.
  7. Set your limits.  Know what your absolute bottom line is, and stick to it.
  8. Be prepared to walk away.  This may mean the property gets taken off the market.
  9. Be realistic and flexible.  Settlement terms and deposits are negotiable on any sale and agreement will depend on what each side is willing to be flexible on.  It may mean meeting half-way, which is a time-honoured negotiation strategy that has proven very successful in countless negotiations.
  10. Ask for advice.  Real estate professionals are trained in negotiation and have the local knowledge and expertise to help achieve a realistic price for a property.

“At the end of the day, the negotiation process has to be conducive to achieving the best possible outcome for both parties. By listening to the advice of your agent and being prepared to accept input concerning what to say and when, better than expected outcomes can be achieved” Mr Nitschke said.