Real estate agents. They’re marketing experts. Sales whizzes. Experienced negotiators. Persuading speakers. The higher they sell a property for, the more money goes into their pocket.
Their sole focus is looking after their client – the seller. So they’ll often be a little at odds with those at the other end of the negotiation table (namely, the buyer).
The challenge for you – as a buyer – is learning how to deal with real estate agents (without undermining your own best interests).
Here’s how to do it.
- Get into the seller’s mind
Finding the dream home or the best investment is the easy part. What you need to do is pinpoint with the real estate what the seller wants.
Yes, they’ll obviously want a high price. But sometimes timing is crucial. Are they selling because they want to move as soon as possible? Or are they offloading the property because something is wrong with it?
You’ll need to know this so you can give an offer that meets their needs – while also not paying too high a price.
- Give a little (to get a little)
You don’t have to tell the real estate agent your life story (or your maximum budget). But by sharing some information with them about your situation, they might share some information useful for you.
Depending on the situation, you could tell the agent you have finance approved, are looking at different places to buy and are ready to pull the trigger when the right property presents itself.
- Study like a nerd
Research the property market to find out what properties are going for what price. Know what the property you’re considering is worth, so you can cut right to the chase when negotiating. You make a realistic offer, you suddenly have a seat at the table.
- Leave your emotions at the door
This is especially difficult when you’re bargaining over your dream home. But emotion is unfortunately one of the pitfalls that prevent a successful negotiation. Put simply, it messes up your judgment and stops you from getting the deal done.
The real estate agent wants the highest price possible so they can impress their client, and that might annoy you. Tough luck.
Deal with it, be respectful and negotiate your best.
- Walk away from a bad deal (and don’t be afraid to do it)
If you’ve mastered step 3 and 4 above, then you’ll know when to walk away. Don’t spend more than what you can afford. You have too much at stake.
Start negotiations over again with a different agent if you must. Don’t pay more than what a property is worth!
Dealing with real estate agents can be tough. But with a little grit and determination, you can stay on top of negotiations, successfully navigate their tactics and ensure you settle on a fair price.
If you need some advice to get the ball rolling, get in touch with the team at Investorfi. We know all the tricks – and can help you execute the above steps so you can purchase the property that’s right for you.
