Yet again, patience pays off!
When our Buyers Agents are in the process of beginning negotiations on behalf of our clients, it’s not uncommon for them receive a comments like “please go hard to get it as low as you can”.
There are circumstances when ‘playing hard ball’ may well be the best negotiation strategy, however in our experience, it rarely is. The best negotiators will obtain as much information as they can before deciding on what the right strategy is moving forward (in our case, this includes information on the property specifically, the market in general, the sales agent and their individual tactics as well as the vendors themselves).
This property was first bought to our Buyers Agent Bryan Loughnan’s attention back in March by a sales agent who he had personally met with when visiting the location earlier this year. At the time Bryan spent a few hours educating and providing confidence to the agent on the fact that he, just like themselves, is a real estate professional and is working with astute investors who are ready to buy, not a DIY who may or may not waste their time.
The property had been listed for sale with a price guide of $249,000. During initial discussions, the agent advised that whilst the vendor was motivated, they were “seeking offers of no less than $245,000.” Our research and independent market appraisal indicated that this property would have been good investing if purchased at a price of up to $240,000.
With his in-depth knowledge of the market, the sales agent he was dealing with and the vendors circumstances, Bryan began negotiations with quite a low offer (in the low $230,000’s). As expected, the offer was rejected by the vendor. At this point, rather than doing what many ‘DIY purchasers’ might do and spend a significant amount of time going back and forth with the vendor, Bryan simply walked away. In doing so, Bryan again explained to the agent that the astute investor he was working with was not emotionally attached to the property and he would find something else.
Over the weeks that followed Bryan kept a close eye on the property.
Several weeks later the property was still on the market and Bryan contacted the agent again with an offer even lower than what he had made 2 months earlier. He provided further assurance to the agent and the vendor that the client he was working with was fully pre-approved and ready to buy. Quickly, it became evident to Bryan that the vendors attitude had changed and they were now indeed motivated to sell.
Knowing the vendors were looking to purchase another family home, Bryan provided them with additional comfort by negotiating an extended settlement period and option to rent the property back after settlement, to ensure they didn’t need to move several times with a young family.
Purchased for ONLY $231,500 and being rented at $275 per week, we believe makes this renovated 3 bedroom home, on a very quiet street in an exciting regional location an excellent investment property. Congratulations Sean!
Whilst Bryan could have rushed in and played hard ball – possibly resulting in a purchase price around $240,000 several months ago, in this instance, patience certainly did pay off.