Sales Secret # 21 When your buyer has the upper hand
'SOLD IN 60 DAYS GUARANTEED!'
by Peter Hutton
When Your Buyer Has The Upper Hand
In the negotiation process, your objective is to control the pace and set the duration. So it's vitally important that you "know your buyer". For example, things you should know include:
- What is your buyer's motivation?
- Does he/she need to move quickly?
- Does he/she have enough money to pay you your asking price?
- Is the buyer educated to the market?
- How many properties have they inspected and how long have they been looking?
Knowing this kind of information gives you the upper hand in the negotiation
because you know how far you can push to get what you want. Unfortunately,
many inexperienced agents just don't understand that knowledge of your buyers'
circumstances provides more negotiation power.
Also, I think often the inexperienced agent will tend to gravitate to the buyers' side during the negotiation process because it is easier that way. These agents feel they have a better chance of earning a commission if they support the buyers' view of the price. We call this "Vendor Bashing".
Only an agent who is acting in your best interest as the property's seller will be
able to negotiate successfully without compromising the best possible outcome
Ask a prospective agent how they would deal with any offers below your
expectations and listen carefully to how they answer you. It'll speak volumes for
how they'll be dealing with potential buyers of your property.
On the subject of "knowing your buyer", the psychology of buyers is fascinating. Studies have shown that it is more difficult to sell a home that is vacant, and it's an important consideration to take into account. A vacant property looks forlorn, forgotten and simply unappealing.
It could even cost you thousands. If and when you move, you're also telling buyers that you have a new home and are probably highly motivated to sell fast.
This, of course, will give them the advantage at the negotiating process.
Of course it may not be possible to avoid selling your property in a vacant state. If this is the case, it's especially important that your agent can read buyers' intentions, use appropriate language, and have a deep understanding of the nuances that make your property not only unique, but perfect for the potential buyer.
In short, an agent who understands buyers' psychology and is able to build a natural rapport is your best ally in selling your property.
The Bottom Line: Choose an agent who you can trust to build a natural rapport with potential buyers, so that they'll learn their motivations for buying. You should feel comfortable that they are strong enough to use their understanding of buyers' intentions to negotiate the sale on your behalf for a premium price. That way, in even difficult circumstances, for example the sale of a vacant property, the agent who understands buyers' motivations can literally make you thousands of dollars more than an agent who doesn't, because they'll have control of the negotiating process.
© Hutton Real Estate - 2007 www.hutton.com.au