When buying a property sometimes it can pay to keep the little something up your sleeve.
telling the real estate agent too much information can cause you to pay a higher price for a
property and put you in a situation where you don’t have the maximum negotiating power
that you could have.
today i’m going to look at seven things not to tell a real estate agent so you can
make sure that you're in the best position when it comes time to negotiate.
today's episode is brought to you by OwnYourOwnATM.com.au by owning a fleet of your own ATM machines
placed in convenient locations and managed by an external company.
you can generate returns of 20% or more guaranteed head over to OwnYourOwnATM.com.au to find
out more information.
so what are things that we don't want to tell our real estate agent and that we ant to keep
up their sleeves or keep hidden away when it comes time to buying a property or negotiating
for property.
Well the first thing not to tell your real estate agent is that you're in a rush.
so maybe you just sold your property and you’ve got a certain amount of time when you need
to get into another property, otherwise you can be in dire straits or in an awkward situation.
you don't want to let your real estate agent know that you're in a rush because they could
use that against you.
they could hold out offers against you so that when it comes time you you got such a
short time frame to buying and to settle that you are are willing to pay more money just
to get it within that timeframe so you don’t want to let them know that you're in such
a rush to do it because they can use that against you
the number two not to tell your real estate agent how much you are willing to pay.
don’t give them your top figure again keep that up your sleeve keep it hidden because
what they’re going to do is they’re going to firstly they’ll try and get you higher.
but secondly they’re probably going to take your top figure and use it as negotiating
power with other potential buyers and say well this person is willing to pay X amount
and you know what you willing to offer for the property they can try and force you into
a bidding war now obviously if you're in a bidding war your probably going to have to
offer your top amount in order to secure the property but if things are a bit slow and
you’re making an offer don't make an offer of 560,000 and say look here is my offer 560,000
but the maximum I’m willing to go to is 580,000 the real estate agents going to say
awesome!
this person is willing to pay 580,000 let's see how close we can stretch them to that.
their not going to say well 560 well let’s run with that
number three not to tell your real estate agent is that you’ve just missed out on
another property and you’re really upset about it.
If you’ve just missed out on a property and you fell you didn't do enough to get it,
chances are that you are in a highly emotional state and you may go ahead and purchase a
rebound property and so by don't keep your emotions within don't get too excited don't
don't get too upset with a real estate agent don't tell them are you so desperate to buy
because you just missed out on property.
number four is that you have to have it.
you don't let your real estate agent know that you are willing to buy this property
at any price.
that you have a looked at 100 properties and you're willing to pay over and above what
this properties worth because it's absolutely perfect for you and your family.
If they hear that from you if they know that then they are going to continually push you
to try and get the highest amount.
or they can get you in a bidding war against someone else so by even if you do have to
have it by staying calm cool and collected and not all letting that our you can negotiate
more effectively.
It’s a hard thing to do but if you can do it is going to help you.
today's episode is brought to you by OwnYourOwnATM.com.au owning a fleet of ATMs has been a well-known
business opportunity 2009 with clients earning a guaranteed yes guaranteed 20% return per
annum it is possible to use your ATM income to subsidise a large investment portfolio
what help you inject cash into your investment portfolio unlike term deposits where you’re
liable for tax from the first dollar you earn ATMs being plant and equipment can be depreciated
to offset the transaction income that you are earning.
ATMs are placed in a variety of convenient locations around Australia with experience
national ATM deployers placing the machine on site and managing up for you.
ATM owners are paid a minimum of 20% per annum or $.30 per transaction whichever is higher
so not whichever is lower whichever is higher.
and it is paid monthly.
so there’s absolutely no outlays for the life of the 8 to 10 year agreement to learn
more about this exciting investment option visit OwnYourOwnATM.com.au today.
number five not to tell your real estate agent is that you really have no idea about the
market.
No idea what a property is worth because they can then advise you on what a property is
worth and what the market is doing by taking specifically examples that back up their argument
even though the property market might be going downhill fast even though the area might not
be that great an area if you let them know that you have absolutely no idea what the
property market is doing well they might lead you to think that the property market is booming
or that you’re going to miss out even though the property market is actually in decline
and it's a buyers' market.
so don't let them know that you have no idea preferably get educated do some research and
find out exactly what the area is doing
number six is letting them know that you're an outside investor.
Now I don’t think it is a bad idea to let a real estate agent know that you are outside
the area and you don't necessarily know the area in full.
But letting them know that you're an outside investor and you just want to buy some property
in the area well again they can use that to their advantage and they can spin things to
you to make it sound like as an outside investor this will be a great area to invest in “blah
blah blah blah” and then get you trapped into buying a property in an area that is
not necessarily going to grow.
So you can say you’re from outside the area, you might let them know that you thinking
of moving to the area or you know you’re purchasing it to move in the future.
where the good spots and so forth.
Don’t let them know you're an outside investor who has no idea about the area has to buy
a property in a rush you know you’re just not going to put yourself in the best position
and
number seven is that your don't tell the real estate agent your future plans to increase
the value of the property.
so maybe you've got future plans to split the property in 2 and turn it into a dual
occupanc.y maybe you've got future plans to do an extension or you’ve got a creative
way to turn a garage into a granny flat.
It’s only going to cost you $10,000 until you generate you a massive amount of income
each year.
because by telling them your future plans two things could happen.
they could take your future plans and use that to sell to other potential buyers to
say you could do this you could convert this into a granny flat you could add this extension
you could just put a wall here and it would basically split into two different properties.
You don't want to give away all your cards because they will use that to sell to other
buyers.
and the other thing that they might do is actually use that up the value of the property.
If they can see a property valued at a certain amount of money when you put $10,000 into
it going to be worth $40,000 more well they might want to tap into some of that profit
that you're going to get and say “well look if you pay $20,000 more you’re still going
to put in 10 grand but instead of getting 40 back you only get 10 backwards and 10’s
still pretty good and i’ll take 20 myself and for my vendor.
so as you can see basically all I'm saying is try not to give too much away and try not
to put yourself in a position where the vendor and the real estate agent of all the negotiating
power against you and you have no negotiating power against them.
so I should really do an episode about how the negotiate and how to get the price down
or at least you make it feel like a negotiation even if you were always willing to pay a certain
amount.
because at the end of the day is that back in forth and if you just offer a certain amount
then people I don't be scared to just accept that that always will be greedy when you get
a little bit more so actually being an effective negotiator you can actually make the vendor
feel like they got a great deal even though you will probably willing just to pay that
money anyway
Hope that makes sense
and you are more videos podcasts articles just like this one then head over to the blog
at onproperty.com.au when really we released a new episode every single day if you want
the full transcriptions of this episode then head over to onproperty.com.au/125 because
of that episode 125 so until tomorrow remember that your long-term success is only achieved
one day at a time.