Hi all, just wondering from a negotiating point of view when purchasing a property. Do RE agents treat investors and would be home owners differently. Are there tricks or ways that you can negotiate to get the best price that differ for each group??
Cheers
Given that most r/e agents aren't investors themselves, I think they find us (investors) a bit of a nuisance.
We ask questions that they don't know the answers to, we try to crunch them on price.
A good agent will have some investor knowledge, even if they don't do it themselves, and will treat you as well as any other homebuyer.
All in all, I would say they prefer an emotional owner/occupier that will keep upping their offer to close the gap with the Vendor's asking price.
One trick that you should think about using is if you want to offer low, then be prepared to go unconditional and on a short settlement (30 days) to get your offer accepted.
This will mean you will need to be super organised, have your finance in place and be prepared to pull the trigger.
Agents (and Vendors) do like that!
I pretend that I don't like the property and I pick out the faults as we go through. I felt really uncomfortable purchasing one of our properties as I felt it was on the market too cheap so I told the agent it was to be our PPOR instead of investment. I always tell agent I've had finance approval as that helps with your negotiations as Marc metioned. In a tight market I prefer a long settlement (8 weeks) as it helps build equity faster and saves me $$$$ as I usually borrow 105% which is negatively geared. Overall I don't think it would make a difference whether you were and investor or homebuyer to the agent. As a vendor though, emotionally I would prefer a homebuyer purchase my PPOR rather than an investor. I wouldn't care if an investor purchased my IP'S.
Hi, madproperty
My experience when buying my PPOR was that agents want to know if you are am owner-occupier or investor, so that they can take a different approach for each type. As an investor, they will promote price, rental returns, location, all the things that an investor would want in a 'perfect' property. As an owner-occupier, RE agents tend to focus on the emotional side, like how you and your family would love the place, etc.
Best to know the type of housing you are buying in the suburb, the median price, the latest sales price for similar units, etc. That was how I approach it with my PPOR purchase.
All the best.
Daniel Lee
I agree with the different perceptions they will use to sell the property based on investor or home buyer … e.g. rental returns for investors or safe environment for families etc etc
I also found most RE agents (5 out of the 8 I saw) tend to not take younger investors seriously.
I had one asked me to show a bank balance before wanting to deal with me.. I'm like "what the?".. just plain rude
Others just didnt even bother showing me around the property or answering my questions.
i'm not "that" young btw
Thanks for contributing. I have certainly gotten something out of your comments and will take it on board.
Cheers and happy investing
i have to agree with ecl.
im 21 and looking at properties they must think im a tyer kicker/ dreamer lol some of the looks i get and sometimes they say oh you wouldnt be interested in this and offer that i dont viewit!!!!!!!!!!!!!!!!!!but on that note i have met some decent re agents and it almost seems unfair (to them) because i must come across that i dont know much about it as they usually put the moves on me LOL. it's great ijust play dumb sometimes and they reviel a whole lot of info and sometimes what the vendor really wants for the property.
Aimee
chappell wrote:i have to agree with ecl.
im 21 and looking at properties they must think im a tyer kicker/ dreamer lol some of the looks i get and sometimes they say oh you wouldnt be interested in this and offer that i dont viewit!!!!!!!!!!!!!!!!!!but on that note i have met some decent re agents and it almost seems unfair (to them) because i must come across that i dont know much about it as they usually put the moves on me LOL. it's great ijust play dumb sometimes and they reviel a whole lot of info and sometimes what the vendor really wants for the property.
Aimee
If they treat you like that they are very bad salespeople. You can't tell from a person's appearance or age how much they can spend.
It is in your best interest to learn as much about the buying and selling process as you can so you can go into a deal with some knowledge and power.
Read all the Neil Jenman and Terry Ryder books to learn some valuable insights.
Here are their websites:
http://www.jenman.com.au/
http://www.hotspotting.com.au/I like to turn up to meetings with agents looking like a bit of a slob so that the agents don't gush all over me and suck up my ar$e. I want to look like a loser, so they don't expect that I can pay a lot.
Some people like to turn up in the power suit, and the tosser car, to try and impress the agent and give the impression they are loaded. Why? They'll just think you can afford to pay more and keep working on you.
This is human nature, but the good agents don't fall for all this; they just work the deal and do their best.
It's a double edged sword! Damned if you say it's for your PPOR and expect to be given the "shpeel" you really dont need/want to hear, and you may be treated like an inexperienced baboon, or go for the "power" approach as in investor and expect the price will be raised and with less chance to negotiate than if you were claiming it as PPOR.
But, you will only be able to say its for PPOR per purchase, per agent! So once you've bought one, you cant use that excuse again for awhile.
Another approach, which I have used on a few occasions, especially if I dont like the agent or their "pushy approach" to try and gleen info out of me, is to just say "I'd rather not say". It urks them, but I secretely like watching those types squirm. It put you in the position of power, and they will then not bother you. This approach will also allow you to keep your MORALS in tact, as you wont have to lie (by saying its for PPOR when it isnt).
You can also say things like: (nicely or harse depending on situation) "If you dont mind, I'd like to just look around on my own". Then they wont follow you and hound you.Plus it will allow you to CONCENTRATE on what you are looking at.
Dont EVER feel you dont have the right to say what you feel if they bother you. Some people DO need to be told to pull their heads in! I just recently cut short a meeting b/c the rep was very rude and blunt, wasnt listening to me, was late, didnt have the info I had requested he bring and then denied I had requested it…………..by then I had had it, so I cut into his conversation and said "Listen, I can tell already I wont get along with you, and I only want to deal with those I like. So this is enough" and walked off. Left him dead silent and hopefully he wont be so rude again. But remember to thank the nice ones too.
And dont ever go there in their car unless you like them, or think you can gleen info YOU want from THEM. It's really a pathetic game, but life is a game. Play it to win.
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