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:

  1. What is the fair value of the property in the current market?
  2. The vendor’s circumstance and how much they are expecting?
  3. 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.