Whatever you do, Employ a Negotiator

Real estate agents are negotiators

Some are great negotiators - some aren't so great.

There are many areas that agents negotiate in but following are the two most important ways:

1. They negotiate with buyers on your behalf in order to get you the best possible price.
2. They negotiate their commission fee with you before they list your home for sale.

When your thinking of selling and you have a choice of agents keep these points in mind.


Q. Who's the better negotiator?

An agent who arrives at your door with a pre-arranged discounted fee below all other agents?
or
An agent who arrives at your door with the intention of negotiating with you on that fee?


Lets look at the discounting agent first

The agent who has a pre-arranged discounted fee does not have to negotiate at all with you about fees. This agent probably doesn't get much training on how to negotiate and probably feels relieved about not having to negotiate with you about the amount of commission they charge. Negotiation truly frightens these people.

• Is this person really demonstrating an ability to negotiate?
• Is this person really going to negotiate hard on buyers if they can't even do it with you?
• Is it really worth saving a couple of thousand dollars by employing this person if it means losing $10,000 on sale because they can't negotiate successfully?

Of course all the answers to these questions are no.

Now lets look at the negotiating agent

This person arrives at your door knowing full well that there is a discounting agent out there charging less than him/her up front. This person is prepared to negotiate with you and most importantly demonstrate to you that they can negotiate. This agent does not try to buy you by simply dropping the fee below everyone else. This agent shows you how they work.

• Is this person demonstrating true skill in negotiation?
• will this person work harder because they're getting paid more?
• will this person work to get a higer price for you?

Of course the answer to all of these questions is yes.

The most important point here is that you get what you pay for.

There are many agents out there who simply undercut on fee because they're too lazy, poorly trained or complacent. These people do not truly understand the art of negotiation. Do you really want to employ someone like this to sell your home?

Make sure you're employing someone who is a seasoned campaigner. Someone who knows how to fight and knows how to cut a deal. These are the agents who can truly negotiate.

The "instant cut-price agent" is just watching from the sidelines & taking the easy route. They must be very envious of their skilled, negotiating peers.

When employing an agent to sell your home make sure you get to see first hand how they negotiate. Often this will be demonstrated in how they negotiate their fee.

Agents who fail to negotiate with you will fail to negotiate with buyers.

For advice buying or selling - Halliwell First National Real Estate

http://www.halliwellfn.com.au/

Director - Alan Halliwell

Price Price Price Price & Price!

In today's buyers market it is extremely important for home sellers to price correctly.

Failing to do so will leave them sitting on the market, un-sold and un-happy.

There are 2 very important points here:

• Pricing too high will put you out of the game. Buyers have so much choice that they can pick and choose. Putting yourself in an unrealistic price range will kill your chances of selling.
• Buyers always try to negotiate. They always offer lower than the asking price to cut a good deal. You can't blame them, you would do the same.

The Key Ingredient is: PRICE

It is important to set an asking price which is in touch with the current market but still leaves enough room for the enevitable negotiation process that all buyers will want to engage in.

Price too high and buyer will not even try to negotiate - and you won't sell.

You need the help of a skilled real estate agent when it comes to pricing your home, especially in this market. A good agent should be putting all the market facts in front of you and should be having the discussion about price with you. A good agent will talk about the negotiation process with you and help you set a price that is not only in touch with the market but also allows for negotiation. And a good agent will be able to handle the negotiation process with prospective buyers.

Poor agents just agree with everything you say and don't talk business. Poor agents shy away from the difficult jobs like having frank discussions about price. Poor agents will tell you they can get big prices for you and then let you down. And poor agents never stay in touch with you.

Sack anyone like this immediately and come talk to us.

Sure, promises of big prices may sound great on day one but by day 100 I guarantee you'll be angry, upset, annoyed, frustrated and desperate to sell.

DON'T fall into the trap. Listen to the advice of good agents. As the old saying goes: "If it sounds too good to be true, it probably is".

For advice buying or selling - Halliwell First National Real Estate

www.halliwellfn.com.au

Alan Halliwell - Director

Old Soldiers never Die

I'm sure Donald Trump won't mind me using one of his quotes. It's a ripper and really describes the kind of market we are currently experiencing.

This quote should get you thinking about pricing.

"Over priced properties are just like old soldiers....... They never die, they just fade away.

Donald. J. Trump

That really hit's home for me.... If this quote is good enough for one of the greatest real estate tycoons in the world it's good enough for me.

It can be read as this:
Over priced homes never sell, they just sit there and get forgotten about.

Who forgets about them?

Buyers forget about them because they know what is good value and what isn't. In a buyers market, like the one we are currently experiencing, buyers have the power. Buyers determine who sells and who doesn't because they are spoilt for choice.
Buyers will always choose the property that represents the best value to them; in a sellers market when there's a shortage of homes for sale they take what they can get and paying high prices represents good value. In a buyers market they have plenty of choice so they can pay less and once again buy what represents good value.
Over pricing, especially in a buyers market will cause you more trouble than it's worth and by doing so you run the risk of becoming "that place with something wrong with it" amongst buyers.

Agents forget about them because after weeks, months & possibly years (it happens) agents get tired of trying to convince over pricing home owners to reduce. Over priced homes often do the "merry-go-round" of every agent in town and become known as "that listing".

You may ask, why does an agent take a home on in the first place if it's over priced? Good question, I ask it all the time!
It could be said that agents cause this trouble by encouraging over pricing in the first place... I agree!

Unfortunately there are some agents out there who over price property intentionally so they can get the listing. This is not acceptable to me or to the majority of agents in my industry.

Unfortunately there is a minority of agents that try this on.

ALWAYS list with an agent who takes the time to give you evidence of the market. Make sure they don't just agree with you without going through a proper presentation. A presentation should include a pricing strategy and reasons for that strategy. It should also include a candid discussion about what the market is doing and what realistc price you could expect. If an agent suggests or agrees to a higher price, that agent should be giving solid evidence as to why and what strategy they have in mind.

If they don't do this or they can't justify anything they say simply ask them to leave.

The over pricing home owner forgets about it because they become frustrated with waiting. Over pricing home owners tend to lose hope after a period of time. They feel convinced that their property won't sell (it wont either unless they drop their price) but at the same time they remain convinced that they can get their asking price.
These owners usually say things like "someone will come along" or "We're prepared to wait". The truth is that often they want too much because they have already spent the money elsewhere. That is they want to do something with the proceeds of the sale so they need that high price. Don't fall into this trap, a home is only worth what someone is prepared to pay for it.

Summary
A good pricing strategy should take 4 things into account:
1. The current market and what it is doing
2. What sort of price the home may attract in the current market
3. What the home owner would like to acheive
4. Allowance for negotiation from buyers

It's a fine line to determine, especially in a buyers market. It is important that you employ an agent to help you through this process. You need a price that is not only competitive but also allows for the negotiation "game" that buyers play.

For advice buying or selling - Halliwell First National Real Estate
http://www.halliwellfn.com.au/
(03) 6424 1496

Alan Halliwell - Director