Canstar asked 5 experts, including me, to share how we got on the property ladder and share what we learned from our experiences Here’s what we had...
Negotiation is the key to success in buying a property at market value or below.
Understanding what you’re up against is half the battle. Real Estate agents are out there every single day negotiating and they are Masters of Human Psychology.
They know exactly what to say and when to say it. So don’t think that they’re giving you a little bit of information on the inside, because an actual fact is part of a very strategic sales mechanism that they have been taught, year in and year out, and probably practiced every single week through case studies and live in the market.
Scott Aggett from Hello Haus is a master negotiator an ex-real estate agent who’s decided to leave the dark side and come over and help people negotiate. He sheds some incredible tips and tricks about what the differences are between the auction process and the private treaty process.
What agents will say to you and I have heard some of the statements that he’s made today I now cringe because I heard them and believed them. Why the agents are saying them and what they actually mean. At the end of the day, you want to be the one that’s in charge of the entire situation. And the situation is you negotiating to a market value or below.
The agent is out there to negotiate on the vendors behalf. Not on your behalf. So, know that, understand the importance in knowing the numbers, understanding the importance of doing your own research and understanding the importance of not giving up and just paying what is being asked.
Understand that price guides are just guides, but you should probably forget them. Do your own comparable sales and work out what you think the property is worth. Understand that although you might want to put in an offer at prior to auction, that could just be used as ammunition for the agent to go back to the vendor and say, “Here I am a clever person If you put in an offer , then if it’s in the lower part of the price guide.” And Scott said, that could actually be something the agent doesn’t want to see.
They may not be encouraging you to do that because they then need to change the price guide if it’s a little bit higher to what they may have been suggesting to the market. There’s so many things going into play there the agents getting a full-blown market campaign for their company and for their brand, and so they very much go and encourage people going to auction.
They want to have people there on the day. I want you to go back, if you’re listening to the full episode, go back and check out what agents say, the day before auction, to get you to auction. You are going to hear this time and time again. And Scott’s insights were absolutely priceless. So head over to The First House Buyer Facebook group https://www.facebook.com/groups/firsthomefirstinvestment/
Scott’s going to be in there to answer your questions. He’s one of our supporters and admin to assist you in your negotiation questions. If you want to talk to him about engaged in Hello Haus, I’d suggest you really take him up on that offer because I’ve tested him with my best friend and some of our mentoring students and he’s done an incredible job negotiating on their behalf.
So this is what you need to remember:
Real estate agents are master negotiators. And if this is your first negotiation, you’ll probably want to have an expert on your side. As always, here guys are to Your Property Success, you’ll catch us every Wednesday If you’d like to type REMIND on the Facebook FHB Show episode, we’ll send you a copy of The Guide to FHB Grants.
We go live again at 12:30, eastern standard daylight savings time, every single Wednesday. And if you’d like to be a guest and have my one on one assistance in helping you through your struggles where you are, I’d love to have you as a guest on the show.