The Best Negotiation Starts Before You Make an Offer
Negotiating successfully on a property is about much more than simply deciding what you are prepared to pay.
The strongest negotiations are built on information. The more you understand about the property, the surrounding area and the seller’s circumstances, the more strategic your decision making becomes.
Start with the property itself.
Knowing the property’s history can reveal important clues. How long has it been on the market? Has the price changed? Has it been sold previously, and for how much? Has it been listed with another agent?
Then look beyond the front gate.
Understanding the suburb, the street and the immediate neighbourhood is critical. What are comparable properties selling for? What is happening with transport and infrastructure? Is there adequate parking? Are there proposed developments, road changes or major projects that could affect the property’s future appeal?
Due diligence also needs to consider zoning, flood and bushfire risk, the age and condition of the property and whether any renovations, extensions or structures appear to have been completed without the appropriate approvals.
If the property is tenanted, the lease terms are equally important. When does the lease expire? What are the current rental arrangements? Can the property be vacant at settlement if that is important to you?
Then comes the seller.
This is where negotiation becomes much more strategic.
Why are they selling?
Are they relocating, downsizing, separating, investing elsewhere or simply testing the market? Have they already committed to another property? How long has the property been available? Is there a particular settlement date that would make the transaction more attractive to them?