Negotiation 101: Information
Mar 15, 2023
To negotiate optimally you must be well prepared. Information is power so make sure yours is deep and accurate.
What is your negotiation strategy when buying a property?
For some people it is as simple as “sticking to my budget”. Unfortunately that is not a negotiation strategy and you’re leaving way too much on the table.
If I am going to negotiate to buy a property I want to know the following at the bare minimum:
- What is the fair value of the property in the current market?
- The vendor’s circumstance and how much they are expecting?
- How much genuine other interest is there?
#1 I can only work out by being immersed in the market. Published data lags the market so it is a flawed way to assess the market. Published data also missed a plethora of nuanced data. Some of the data I want is:
- How much properties are selling for.
- How much properties are selling for vs expectations, guides, etc
- How quickly they are selling.
- How many unique bidders there are above incremental watermarks at the auctions.
- Triangulation of the property in questions value with respect to other very recent transactions.
#2 I can work out through the grapevine and information the agent discloses. In addition #2 I can also INFLUENCE … eg. by providing convincing arguments and data to the selling agent.
#3 I can work out by visiting multiple showings, seeing what people bid on and miss out on, talking to other agents, talking to other buyers, etc …
Now how do I use all of that information? Stay tuned.