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How to negotiate a mutually beneficial sale
April 27, 2015
Buying and selling a property is perhaps one of the most emotional and demanding experiences one can undertake. In order to minimise some of the stress and emotion that comes with selling, vendors should seek to employ an agent who can act as an intermediary and devise an airtight negotiated agreement prior to the sales campaign. To facilitate a smooth sale, the agent should endeavour to negotiate an agreement that works to benefit all parties; achieving the best end result for the vendor whilst ensuring the contract accommodates the buyer.
Find your local expert
The first step in laying down the foundation for a successful negotiation process is selecting a real estate agent that understands your area’s demographic and knows how to successfully market to them. An astute agent will determine your potential buyer demographic and strategise how the campaign will run to benefit them. This includes selecting the method of sale, the timeframe for settlement and the amount of deposit required that appeals to your property’s demographic. For example, requesting a larger than average deposit for a property which is of interest to first time buyers will alienate a number of potential purchasers. Agents using a cookie-cutter approach will not guarantee the best return on investment for the vendor, where-as a bespoke campaign is far more beneficial at gaining the best end result.
Agent awareness and communication
Clear communication is vital at every touch point throughout the negotiation process. It is critical that both the vendor and the buyer are aware of their position and clear communication will ensure the sale goes smoothly. The chosen agent should possess excellent interpersonal skills, enabling them to read the potential buyer and then advise the vendor on the best possible course of action. An agent’s responsibility to his vendor is to understand each party’s motivations and emotions and advise and mediate to ensure the best result for all.
Financially savvy agents pay dividends
It pays to check that your agent possesses a sound knowledge of financial management in real estate. This knowledge of how issues can arise, and perhaps more crucially, how they can be worked through, pays dividends when negotiating a deal to ensure both parties are mutually benefited and the sale goes through. For example, if a vendor has sold but is yet to purchase a property, a deal can be struck with the buyer that allows the vendor to stay in the property until their accommodation has been secured.
Vendors should also seek to employ an agent who has comprehensive knowledge of property law and is adept at ensuring all paperwork is filled out correctly. This will guarantee all parties have an understanding of the legalities of the contract which may ultimately save time and money later down the track.
By negotiating an agreement that works for all parties, an agent is able to connect the vendor with more buyers and have better chances at selling the property at a greater price but within a shorter time frame.
About the Author: Julian Augustini is the Director of Hodges’ Brighton, a Licensed Estate Agent, and a passionate, energetic Auctioneer. Julian’s exceptional knowledge and understanding of Melbourne real estate has come from more than 19 years in the industry. Julian is sought out by buyers and sellers alike because of his attention to detail and his record of continued success.