Did you read Bob’s recent blog – Half a lifetime reading emails. This got me thinking about “how do some sales get agreed?”.
When I started as a “Negotiator” (is this job title going to disappear?), an offer was gold. To negotiate successfully we need to embrace the facts:
What is the purchaser’s position; check the chain-sold prices throughout; how much is the purchaser’s property on the market for; have they taken a hit on the asking price; why do they want to move to this house; what is the reason for this offer; will they increase?
Then to the vendor: how long have they been on the market with ourselves/other agents and what was the marketing price; have we had any other offers? If we have, what did we reject/accept/get informed would be acceptable; what was our initial appraisal of the property; what are the vendors intention; have they found a property; what price is that; do we have a house for sale that would appeal?
The skills and requirement to NEGOTIATE!
Estate Agency Is Changing
Now sometimes on receiving an offer, you may hear “they will never accept that”. What is interesting, is that this comment is often thrown out without knowing any of the information above. What is forgotten, is the bartering war amongst agents when the asking price increases with every valuation. And most importantly, we have forgotten the client’s motivation and need to move. The self service model, leaves our vendors and purchasers to carry out the negotiation themselves, I would love to listen in on some of those conversations!!
Estate Agency is clearly changing, how people communicate and do business has changed. I do wonder how effective a direct vendor and purchaser negotiation is, with tension high and major life changing decisions being made. A Full Service agent is needed by many vendors, perhaps when choosing an agent the thoughts of negotiating the sale is not considered, or in fact, deemed as easy. When a self service agent has been chosen, it must be that some vendors find themselves dealing with an offer lower than they expected and really struggle to effectively negotiate up to the desired amount. Which brings me back to my earlier question - how do some sales get agreed?