After a roaring start to 2021, property markets across Sydney are starting to cool down.
While prices are still moving higher, the restrictions that are in place are clearly adding to a reduction in both transaction volumes and the overall number of buyers. However, we are still certainly seeing plenty of interest in high-quality properties.
As the market cools back down to something more normal, it can be a difficult time when trying to purchase a property.
For one, buyers still want to sell their property for the best possible price and if they have seen their neighbour getting top dollar only months ago that can certainly be an issue for a buyer. However, there are a number of approaches you can take to try and better negotiate with a vendor in a slowing market.
Build a Relationship with the Agent
Trying to tell someone their property isn’t worth as much as they believe it to be, is one of the trickiest things in real estate.
When doing most property transactions you will likely be dealing with a sales agent. To be able to communicate effectively, it’s vital that you build up your relationship with the sales agent as they are ultimately the person that will pass on the message to the vendor.
The better your working relationship, the more inclined they will be to make your case with a vendor. Selling a property is a negotiation and a good sales agent understands that. It’s also important to understand that a sales agent wants the transaction to go ahead.
If you feel the property that you’re interested in buying is not worth as much as the vendor believes, it’s up to you to justify why you think that is the case.
The best way to do that is with comparable sales data. When markets change, they can move very quickly. Sales that occurred six months ago, might not be relevant now and that’s why you will need to present that data to the sales agent and have them convey it to the vendor.
If a property is priced higher than what it should be, but there are plenty of interested parties, then perhaps it’s your expectations that are out of line or the market has moved quickly once again.
However, if a property has been sitting on the market for a few months in a hot market, then it is very likely that the property is not priced quite right. You will likely need to get the sales agent to communicate this with the vendor if they have not already done so. The best way for them to do that is to show them the data, not to tell them.
It’s Not an Ultimatum
As previously mentioned, buying a property is a negotiation. Buyers can often get into a situation where they are offering up a take it or leave it ultimatum with a vendor.
While this can be effective at times, there are also other things that you can look at to help improve your offer.
If you can’t come to the party on price, you might be able to improve the terms to make it more suitable to their personal situation. Again, by having a good relationship with the sales agent, you might be able to identify what it is that the vendor wants and why they are selling.
If it’s purely money, then there might not be a way forward if you can’t meet them on price. However, there could be a number of creative solutions you can come up with that might make your offer more appealing if you’re able to understand their personal situation and work towards solving that problem for them.