How to negotiate in a rising market

There are few things more frustrating in life than missing out on a property that you had set your heart on.

This can happen in all market conditions, but it is especially common when prices are rising faster than buyer budgets have time to adapt.

But even though it might not feel like it, it’s often better to miss out on a property than to overpay substantially for it.

The multimillion-dollar question is therefore: How do buyers judge what is a fair price to pay and what is, well, a little bit ridiculous?

Practice matters

Appraising a property’s potential market price and negotiating to buy it has always been difficult for everyday homebuyers and investors.

Mainly that’s because they only do it a few times in their lives, which means they just don’t have the experience or the knowledge to compete with a selling agent who has probably sold hundreds of properties during their career.

While a sales agent’s role is to secure the best offer for their vendor client, which can mean the highest price but also can be optimal contract terms and conditions, they also are likely to be savvy negotiators – or they should be!

As a professional buyers’ agent, I have been on the buying side of hundreds of transactions for clients over the years.

Sometimes, we have been engaged to source a home or investment property for clients which includes taking the whole process from the research phase to settlement day.

Other times, though, we are engaged to assist buyers with appraising and negotiating on properties that they have found themselves.

These buyers may have missed out one time too many on a property and realise they need a bit of expert assistance to change that sad state of affairs.

Other times, they may simply recognise that their negotiating skills are a little lacking, so they would prefer that both sides of the transaction – the buyer and the seller – have an expert on their side during the process.

Expert on your side

With market conditions running hot in so many locations around the nation, there is a growing cohort of potential buyers and investors who are struggling to purchase.

Perhaps their budgets are not realistic for the location or the dwelling type that they wish to buy, or they simply can’t get their head around the rapid increase in prices.

Regardless of their reasons, we are regularly acting on a buyer’s behalf to appraise and negotiate on a property that they wish to secure.

On top of this, we also help with the necessary due diligence, such as connecting them with conveyancers to review contracts and building and pest inspectors to check that the dwelling is up to par.

Fundamentally, these services can significantly reduce the stress levels that some people experience when purchasing a home.

Rather than having sleepless nights fretting about what price to offer and negotiating with the vendor via the sales agent, handing over that responsibility to us can not only result in reduced angst, but can also make the difference between a successful result and having to go back to the drawing board – yet again.