All Topics / General Property / Don't forget to ask…

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  • Profile photo of Steve McKnightSteve McKnight
    Keymaster
    @stevemcknight
    Join Date: 2001
    Post Count: 1,763

    Many people find negotiation confronting and difficult, but here’s a tip to remember: be sure to ask for something you don’t want, so you can then concede it later on for something you do want.

    Here’s an example, recently I made an offer for a house. The asking price was $350,000, and I offered $330,000 including all the furniture. I didn’t actually want the furniture, but later on I conceded the furniture if they would accept my price. If I hadn’t asked for the furniture then it would have left me little wriggle room on price.

    You could ask for anything… the house to be painted, some repair done, longer settlement, owner finance. It doesn’t really matter because if you get it then it’s a bonus and you are only asking to toss something else back into the deal pot to make your ideal price and terms more achievable.

    Cheers,

    – Steve

    Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
    https://www.propertyinvesting.com

    Success comes from doing things differently

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    Great tip Steve!

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    https://terryw.com.au/
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://Terryw.com.au/

    Profile photo of BuyersAgentBuyersAgent
    Participant
    @knightm
    Join Date: 2005
    Post Count: 338

    Many people find negotiation confronting and difficult, but here’s a tip to remember: be sure to ask for something you don’t want, so you can then concede it later on for something you do want.
    Here’s an example, recently I made an offer for a house. The asking price was $350,000, and I offered $330,000 including all the furniture. I didn’t actually want the furniture, but later on I conceded the furniture if they would accept my price. If I hadn’t asked for the furniture then it would have left me little wriggle room on price.
    You could ask for anything… the house to be painted, some repair done, longer settlement, owner finance. It doesn’t really matter because if you get it then it’s a bonus and you are only asking to toss something else back into the deal pot to make your ideal price and terms more achievable.
    Cheers,
    – Steve

    Great food for thought @stevemcknight. Do you have a position on the benefits of this approach compared to a strong offer like a low cash offer or a faster settlement and bigger deposit. I was talking to someone today about a property purchased a solid 15% under market purely because there were no conditions and a really fast settlement. I oscillate between a range of approaches depending what each client of mine needs but it is fun to study the negotiation phase neutrally for possible changes I might make. I am wondering if in a flat market with less competition your strategy of many requests to give back later could work, but in a hot market it may mean getting disregarded by agents as “its just too hard”?

    BuyersAgent | Precium
    http://www.precium.com.au
    Email Me | Phone Me

    South Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au

    Profile photo of sashsash
    Participant
    @sash67
    Join Date: 2016
    Post Count: 5

    Many people find negotiation confronting and difficult, but here’s a tip to remember: be sure to ask for something you don’t want, so you can then concede it later on for something you do want.
    Here’s an example, recently I made an offer for a house. The asking price was $350,000, and I offered $330,000 including all the furniture. I didn’t actually want the furniture, but later on I conceded the furniture if they would accept my price. If I hadn’t asked for the furniture then it would have left me little wriggle room on price.
    You could ask for anything… the house to be painted, some repair done, longer settlement, owner finance. It doesn’t really matter because if you get it then it’s a bonus and you are only asking to toss something else back into the deal pot to make your ideal price and terms more achievable.
    Cheers,
    – Steve

    True….just put in a offer 20-25k under the market in Brisbane…and it is being considered…they sent me the contract for the place to fill and return.

    I am still pinching myself….hope I get good news by Monday. :)

    Profile photo of Corey BattCorey Batt
    Participant
    @cjaysa
    Join Date: 2012
    Post Count: 1,010

    Interesting concept. I can understand asking for a longer than necessary settlement etc – but the more obscure offers will likely put the agent offside or signal that you’re a newbie more than anything. Most agents I know will likely try to persuade the vendor to go for the path of least resistence – the easiest offer not the best. I’d sooner be putting in a low but competitive offer to get the agent on side to pushing for the sale.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
    Email Me | Phone Me

    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of DeanCollinsDeanCollins
    Participant
    @deancollins
    Join Date: 2015
    Post Count: 376

    Great idea…..”give up what you don’t want”, lol ever been stuck with “the furniture” on a deal?

    Profile photo of sonipatsonipat
    Participant
    @sonipat
    Join Date: 2016
    Post Count: 5

    Hello dear,
    Special reply to you Steve McKnight | PropertyInvesting.com Pvt Ltd | CEO
    for your great thinking sharing with us..
    “Success comes from doing things differently”
    Thanks for it dear and share as like that in future also.
    Thanks again

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