What not to tell a selling agent at an inspection

What not to tell a selling agent at an inspection

With 20 years real estate experience under my belt, I can assure you buyers who reveal any information in relation to their motivation or time frame for wanting to buy are likely to pay more.

I also know that one of the main reasons I’m able to buy properties for far less than my clients are prepared to pay for them, is because the sales agent never gets to read my client’s body language or tap into their emotions during the negotiation process.

A couple of the keys to negotiating is to find out as much about the other party as you can, keep your cards close to your chest and never be the first to name a price.  

For the very same reason vendors choose a selling agent, buyers should have their own third party professional representation by retaining a buyer’s agent to assist them.

Only let the selling agent know that you’re interested in purchasing the property and avoid sharing anything else. When you’re going to open homes and talking to sales agents on the phone always play the indifferent buyer. If they know you’re in a tight situation they’ll use that information to their advantage when it comes time to negotiate.

As a guide, here are a few of my top negotiation tips on what not to disclose to a selling agent:

NEVER DISCLOSE YOUR BUDGET - Once they know your budget, the selling agent will do everything they can to extract every cent of it out of you, especially if they haven’t reached the reserve or the vendor’s bottom line yet.

NEVER TELL A SELLING AGENT YOU’VE ALREADY SOLD - If an agent finds out that you have already sold your home then they will rightly or wrongly assume that you are a highly motivated buyer.  They will think that it would be less expensive and more convenient for you to purchase a new home at a premium price rather than finding interim accommodation. The sharing of this information will put you at a serious disadvantage when negotiating the price of the property you’re interested in.  

HOW EMOTIONALLY INVESTED YOU ARE IN THE PROPERTY - When viewing any property, always wait until you’ve left the premises to discuss the positives and negatives you see.  If you absolutely love the property then keep this information to yourself or the sales agent will realise that you’re already emotionally invested in the home which will lead to them try harder when it comes to extracting more money out of you during negotiations.

THE MAXIMUM FIGURE YOU ARE PREPARED TO PAY FOR THE PROPERTY - If a sales agent tells you the owner is expecting over $1,200,000 and asks you if you can afford it then tell them you’ll be prepared to pay what your research indicates that the property’s worth. If you acknowledge you could afford $1,200,000 (as your ego will want to) then should you make an offer of $1,150,000, the agent knows you’ve got more money to spend and they’ll work on you until they get as much of it as they can. At the end of the day their income and commission cheque is based on a percentage of the purchase price and therefore relates directly to how much they can get you to pay.  

Categories: Open Homes