Negotiation
Welcome to the final part of the James Home Rating Process.
As the markets mature and the way properties are offered for sale becomes more complicated, it's becoming harder for buyers to negotiate well.
You negotiate to maximise your position financially and emotionally.
To negotiate well, we start with a James Negotiation Plan.
At the top of the plan we ask: What is it you are trying to buy - a price or a property?
On one extreme is the occasional buyer who is focused purely on price. At the other end is the buyer who wants the home whatever the price.
Most buyers fall somewhere in between on the price vs property spectrum.
Negotiation strategy is about risk vs reward: what risks are you prepared to take for which rewards? This will determine your planned strategy.
On the other side of the negotiation fence are highly skilled selling agents using sophisticated selling processes. Many agents employ two key techniques to maximise their clients' (the seller) position.
These are:
- Suggestion and
- Questioning
These techniques are used in both auctions and private sales.
A common variation of the above techniques is Step Quoting, where the asking price rises each time you have contact with the agent. It may start, for instance, at $2m when you speak on the phone, go up to $2.2m when you ask at the door, rise to $2.4m before the auction and then when the property is passed in you discover the reserve is $2.8m.
How do you deal with that? For more information read our article on Step Quoting.
Auctions are all about pressure. They're about gathering all the combatants into a ring and letting them fight it out. How do you know who your opponents are?
Sure, anybody can bid at auction - but even in good markets it's still less than 1 in 3 that are bought under the hammer and then the most common Bidder number is - yep - One, You. You are bidding all by yourself.
Do you understand how clouded many deals are with smoke and mirrors? While you are looking at your reflection is someone else doing to you what you needed to do to them? We won't let that happen.
Private sale is all about process. It's not a simple, consistent, easy to understand stated process either, but a protracted complicated process that's designed to maximise the price.
Not sure what we are talking about - its another one of the unknown knowns.
But surely anyone can negotiate!
Perhaps! But can you do it well?
You're simply more effective if you have professional representation protecting your position.
We use sophisticated technology, combined with years of experience and solid agent relationships to read the play, plan our next strategies and understand your true position.
All this is within the James Negotiation.
And remember, sometimes negotiating is not all about the money.
Sometimes the best strategy is Happy Spouse Happy House.
If at any stage you would like more information about how a James Buyer Advocate can help or you want to meet me or another of our buyer advocates for coffee, then please contact us on 9804 3133.
