Before we get started:

Identify your goal:

The goal is setting the price you're willing to pay for the property - this is done via comparative market analysis and overlaying you're circumstances & budget.

What do the other team want?

Understand what the seller wants from the situation & why they are selling. They might be more concerned about settlement.

Remember:

1. Your situation doesn't affect the intrinsic value of the property.
2. Past values don't dictate today's price.
3. Leave emotion at the door.

Vendor motivations & expectations:

• Why is the vendor selling?
• Have the vendors bought elsewhere?
• How long has it been on the market for?
• Are there any terms that the seller is particular about?
• Where are you expecting the property to land?
• What is on the agency agreement?
• Am I wasting my time at $X? - always suggest a price slightly lower than your max.
• What do you think would get it over the line if we were to put an offer in?

Determining the price:

• Can you please share comparable sales in the area?
• What factors have you considered when setting the asking price?
• Are there any aspects of the property that could justify a higher / lower price?
• What aspects of the property contribute the most to its perceived value?
• How does the property compare to other similar properties on the market right now?

Gauging Buyer Interest:

• Can you provide insight into the level of interest on the property?
• How many groups have been through?
• How many contracts are out?
• How many building & pest reports have been ordered?
• Have you received any offers?
• What are the typical timelines for a property like this to sell?

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Confirming other offers:

• Are there any offers on the table?
• Is this property receiving a lot of attention compared to others you’re working on?
• Can you provide more details about the competing offers?
• What would you recommend if we were to increase our offer?
• Do you plan to run to auction or are you encouraging offers?
• Is there anything we need to be mindful of when making the offer?

Keep your cards close:

Don't reveal too much, especially not your exact budget or pre-approved amount to the selling agent. Giving them a range and mentioning other properties you're considering is wiser, as they're expected to know local property values. If asked about your budget, hint at a level similar to the home you're viewing.

Level the playing field:

Remind agents that their property isn't the only option. Mention other open houses you've visited or are planning to attend. Balancing the situation shows your experience and seriousness as a buyer.

You should always back this up by saying you are interested in the property and please notify me before selling it.

Don't submit round numbers:

Most people work in round numbers and that’s how they’ll present offers. If you utilise odd numbers e.g. $1.257m you’re more likely to come in above other buyers. It also creates challenges for counter offers as they’re uncertain on where the best next level sits.