Once you have found a suitable property you must work out the best way to secure it on the most favourable terms.
First key decision. Who is the best person to handle this negotiation? Someone who negotiates property purchases on a daily basis or someone who is emotionally attached to the deal and may only negotiate a property purchase 1-5 times in a lifetime?
A good negotiator will ask many questions about the circumstances of sale and discuss and property related issues. Only when all relevant and key questions are answered can the best negotiation strategy be worked out.
The property search agent has two key goals.
1 – To secure the property for their client and to not lose out to another bidder.
2 – To agree the purchase at the best price (whilst it may be necessary to bid against another party the purchaser must know when the price has exceed the correct market level and they are paying a premium).
Second key decision. Tactics. What are the best tactics to use and how best to present the offer to the vendor and their agent? A well-presented offer with supporting documents will always be at the top of the list of preferred buyers. Some buyers offer little information and even deviate from the truth when making an offer, this is a mistake. It you need a mortgage, have a property to sell or have a reduced deposit – tell the estate agent as this will create trust between the both parties. Your property search agent will know the best way to make the offer.
Third key decision. Once the deal is agreed there may be the need to enter into a renegotiation. This can be difficult and needs to be handled with care. Many deals can fall apart at this point through bad presentation and negotiation. This renegotiation process can happen on both sides, for example, a vendor can accept a gazumping bid and a purchaser may want a reduction due to a bad survey. This process, especially if the purchaser is renegotiating, must be treated as if you are starting again – you must consider the deal to be at “risk” until a new agreement is achieved.
A good negotiator will make a deal happen. Ideally both seller and purchaser need to be happy with the end result.
