Friends or Foes

During a property acquisition you will come across many people that will either help or possibly hinder your property journey.

Often their intent is not to be implied in a negative way, however as you are already on emotional high alert you may become agitated or unsure of other’s motivations towards you.

It is important to consider who are your friends or foes during your journey?

Who can you openly share your thoughts with?  Get advice?

Who can help you without leaving you feeling that there was an ulterior motive?

Let’s look at The Selling Agent – are they a Friend or Foe? 

As a buyer, you have to remember that selling agents will always be on the side of the vendor and part of their job is to extract as much information as possible from buyers to provide supporting evidence to the vendor.

Equally the selling agent wants to achieve a “record” price for their sellers and a buyer wants to pay the least amount for a property so they feel they have secured a “great deal”

Some agents have been known to overly engage with you at an open home as they are hoping that if you need to sell before buying, the agent could potentially be appointed by you, to sell your home.

It’s really important to balance your relationship with the selling agent, as you need them on your side to give you some inside information of any potential new listing, or information that you can use to your advantage when interested in presenting an offer to buy a property.

Don’t give away too much and keep some cards to your chest.   You should never disclose your exact budget.   If you are too open and honest then you maybe have no room to negotiate.

An agent will call you following on from an open home inspection and ask for your feedback and thoughts around pricing, ensure that you provide some constructive commentary around the property.

If they ask you “What do you feel it is worth”?  be honest and transparent as they are simply obtaining your thoughts to educate their sellers and potentially setting the price expectation based on market demand.

The feedback will also show sellers the aspects the buyers love or dislike about the home.

During this phone call, you can open up dialogue and ask the agent what is the vendor’s price expectation?   Take control of the conversation and extract information for you to use to your advantage.

Some agents try to create competition amongst potential buyers and push for urgency and commitment.  If this was to occur then the agent needs to provide all buyers with a “multiple offer form”

This means, you need to put your best foot forward and present your best offer in terms of price and conditions.   There is no room to negotiate.  

You are safe to assume that if no multiple offer form is presented, then there are no multiple offers, therefore you may have some wiggle room.

Ask the Agent questions:

  • Why are the vendors selling?
  • Have they purchased elsewhere already?
  • How long have they lived there?
  • Are there planning guidelines?
  • Is the land unencumbered or has any restrictions?
  • What are the outgoings?

Use the selling agent as a friend so you can position yourself with strength.

Let’s look at other friends:

A conveyancer for instance, they will help you navigate the legalities of your purchase.

Building and pest inspectors, they will point out all the good and bad elements of the property and remember there could often be some negative elements, but are these a deal breaker for you?

Buyers Agents, they are absolutely your friend as they take an unbiased approach, provide you with evidence and support you during the journey.

There is an endless list of friends.

Let’s now consider those possible foes:

They could be friends, families, competing buyers, neighbours.  

Again, all with differing opinions and reasons behind their motivations, words and actions.

There is room and a purpose to have these friends and foes in your corner, but it’s important to acknowledge and be clear in your mind as to what a successful outcome could look like for you.

Don’t listen to the “noise”

Do you due diligence, get curious and ask question as ultimately it is your property and your investment.