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4 things you shouldn't tell the selling agent when buying property

One of the worst things a buyer can assume is that the super friendly selling agent is their friend and is going to help them get the property at a good price.

Quite simply, a real estate agent selling the property for a commission, and their interest lies with the vendor getting the highest possible sale price.

To increase your chances of winning the negotiation battle with the vendor, keep the following to yourself;

1. Budget

Smart buyers have a strict budget – and they stick to it.

Now that number should only be known to you and the one person that shouldn't be aware of your exact budget is the sales agent.

Let me be clear: agents are on a mission to find out as much useful information about potential buyers as possible.

And that includes your budget limits.

In other words, a real estate agent wants to know your budget so they can use that during negotiations.

If the agent knows you have more money to spend, they will attempt to extract it from you in the final sales price.

The secret is to give a more general answer to the budget question such as: "I'm looking for properties around this price."

2. Timing

Just like timing is crucial in jokes, so it is in real estate transactions. And that's why a real estate agent will try to elicit this information from you.

When speaking with the selling agent, try to get an understanding of the timing requirements of the seller. The vendor might need a quick sale or is after a long settlement, which you can use in negotiations.

In the same vein, an agent will attempt to know whether you need to find a property quickly, perhaps because you're already sold your own, and may use this information to speed up proceedings.

3. Price feedback

Most properties get listed with a price range next to the photos or no price at all rather than a fixed sale price.

That's because the properties that are most in demand will attract the highest prices. And sometimes price is hard to predict beforehand, especially if there is demand for properties in that area.

At the end of the day, the market will always dictate property price and its usually emotion that drives that price up.

That's why you should never suggest price specifics with an agent, because your numbers might be much higher than the vendor was actually prepared to accept.

Instead, because you would have done your research, you could discuss comparable sales with the agent so they know that you know what you're talking about.

4. Not interested

Telling the agent, you're not interested or giving them the silent treatment won't do you any favours.

Here's why: the agent is working for the vendor but to do a good job they have to find a suitable buyer, which involves communicating with interested parties.

The main point I'm trying to make is that you have to give a little to possibly receive a lot.

And that means communicating with the agent during early negotiations so they know that you're interested.

That way, if there is a multiple offer situation, you'll have your hat in – and not out – of the ring.

While you don't want to be the buyer who loudly protests your love for a property or tries to outsmart your competition by pointing out its various faults, you have to be in the game to win it.

And that means being professional in your dealings with the agent, while keeping your aces close to your chest.

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This article via Your Mortgage does not constitute advice; readers should seek independent and personalised counsel from a trusted adviser that specialises in property, a tax accountant and property design specialist.