You get more than a lower price when you work with an expert negotiator on a property bid
Originally published on Linkedin.
Buying a property, whether to occupy it or as an investment, is always an intense process. It can also be a test of morale, especially when the market conditions are challenging or dynamic, and the seller and/or agent holds the advantage. Stacked against that, for the inexperienced buyer, the perception that there’s a lack of support or good quality information can be overwhelming.
One of the reasons that I set up Hello Haus was to right this imbalance and give buyers expertise in their corner. I did that not just to help them get a better deal, but also to make sure that they’re genuinely happy with the purchase and that it delivers what they’re looking for from it.
With that in context, I wanted to share three recent examples that show the various ways in which having the support of an expert negotiator can deliver a satisfying outcome for the buyer, beyond the raw price paid for the property.
Example #1: Access to a full database of expertise
An investor came to me, having only purchased one property previously, with interest in an apartment that required some significant repairs. The nature of these repairs meant that strata was going to be involved, and the questions that were being asked of the prospective investor were significant and challenging.
In short, this was a high-risk property for the investor, and would potentially cost them a lot of money and difficulty in the medium and long term. What the investor needed was to access range of different, independent voices to advise them and ensure that they knew what they were getting into, and how to address the challenges.
Because I’ve had so many years of experience in negotiation, I have developed a deep database of experts in a wide range of property matters. Helping the client find the right experts became core to the value of the engagement I was able to provide. Thanks to this advice, it was possible to negotiate around the repairs required, and the investor was ultimately able to secure the property for $810,000 – a saving of $19,000 up-front. It was also safe to proceed with the purchase, as a leading conveyancer that we recommended was about to draft relevant clauses to protect the buyer into the purchase contract.
Example #2: Salvaging a deal that was souring
First home buyers can make the decision to pull out of a deal for solvable reasons. A client, buying their first home, was able to save $5,000 on a $611,000 property with Hello Haus supporting the negotiation. This was in a highly competitive sealed bids sale process.
Ultimately the value that we provided extended well beyond the price paid or navigating the bidding process. Unfortunately, it was later discovered that the property had plumbing issues, and the cost of repair meant that, unaware that they could re-negotiate terms post the B & P report, the client was planning to withdraw the bid for a property that they were otherwise very happy with.
Here, our expertise was invaluable to the client as we were able to talk them through arranging quotes for the work, and how the work costs could be covered in a way that would salvage the deal. Ultimately, they were able to finalise the purchase of the property and move into their new home.
Example #3: Avoiding the panic buy
A third client was, like many Australians, finding it difficult to get their foot in the door with a property at all. In the six weeks prior to engaging with Hello Haus, they had made offers on over ten houses.
The lack of success was leading them to lose focus, and when they engaged us, they were planning to make seven offers on seven further properties. There was a real risk that in the desperation to secure a property they were going to overspend, or purchase the wrong property for their needs.
By engaging with Hello Haus, we were able to help the client reset the objectives, re-focus, and buy an ideal home that met their needs at the target price of $910,000.
Clients typically come to us looking for assistance in getting property cheaper. That is a major component of what we do, of course, but there is more to negotiation than a simple price consideration. Our expertise helps people protect their investment against future costs, salvage a challenging purchase, and access the expertise that they need to make the right decision for their needs.
For more information on how we can assist, contact us today!