5 Things You Should Never Tell A Real Estate Agent
In This Weeks How's The Market | Edition 31
5 Things You Should Never Tell A Real Estate Agent
Investors Are Back
A Good News Article (Not Fake News)
5 Things You Should Never Tell A Real Estate Agent
When it comes to buying a property, the role of a real estate agent is crucial. However, it's important to keep in mind that they work for the seller and their ultimate goal is to sell the property for the highest price possible and whilst most of them are very friendly people and they might seem like they are doing you a favour, in reality, they probably are not.
A good analogy is to compare a real estate agent to a lawyer for a party you are opposing in court. The lawyer in this example is working for the other side and is trying to get information out of you to use against you. Whilst they may seem friendly, you would never actually give any information away as you know it could damage your case. A real estate agent does the same thing, so our advice is to treat them nicely (this goes a long way) but keep your cards close to your chest. And here are 5 things that you should NEVER tell them…
Your pre-approved budget
It's never a good idea to reveal your exact pre-approved budget to a real estate agent. As when it comes time to negotiate, they will know if you’re leaving anything on the tablet. Instead tell them that you are looking for homes in a range and provide examples of properties that have sold in the past within this range.
Pro Tip: When submitting an offer, send your pre approval with the offer - again just make sure to redact the actual number. This shows them the date you were pre approved and what bank which makes your offer more serious.
2. Your opinion on the property's worth
After visiting a property, the agent may call you to ask what you thought of the house and what you believe it's worth. To avoid giving the agent any bargaining power, refrain from giving a specific number. Instead, simply give your overall impression of the property compared to others you've seen. They will write down what you thought and when it comes time to negotiate, if other interest is below your number, an agent can use that against you.
3. How much you love the property
It's best to avoid expressing any strong emotions when describing a property to an agent. Doing so can give the agent an advantage when negotiating. If you're buying a home that you plan to live in for a long time, try to keep your emotional attachment out of the conversation with the agent. We understand this is easier said than done which is why a buyers agent can be a big help in negotiating.
4. Personal reasons for wanting the property
Avoid mentioning any personal reasons that may make you particularly interested in a certain property, such as the fact that your sister lives on the street or that you want your kids to attend a specific school. This information can give the agent leverage when negotiating with you.
5. That their property is the only one you're interested in
Let the agent know that you're interested in their property so they don’t sell it without letting you know, but also mention other properties you've seen and what you like about them. This will prevent the agent from thinking that you'll do whatever it takes to buy their property. By mentioning other properties, you'll also show the agent that you're serious about the home-buying process.
Successfully securing a great home for a great price is all about the 1 percenters. Having additional leverage on your side is what will help you achieve the best result.
What The Agents Are Saying
Investors are making a comeback.
After speaking with multiple agents this week, it appears that investors are making a return but with a limited budget.
Some agents in Geelong and the eastern suburbs have stated that investors are making up nearly 50% of buyers in the sub $600k range.
With one property due for auction last weekend seeing 4 offers made prior to auction which resulted in the agent bringing the auction forward and selling it prior.
This is after seeing reduced investor numbers in the market for the latter half of last year.
First home buyers are struggling.
As interest rates have wiped out a massive amount of borrowing power, first home buyers are struggling the most as they generally have the lowest deposits to put towards a property.
Upsizers on their second or third home that have a good amount of equity from the property boom as well as downsizers are taking charge of the current market and looking for a good deal as the interest rates effect them less. Agents are struggling to find enough stock for these demographics and saying good properties in their price point are still flying.The Wow Factor!
50B Skene Street, Newtown, Vic 3220
Fit For A King!
One of Geelongs most prestigious homes, built in 1851 and with 22 rooms!
In The Media
Property prices are falling. Don't freak out, or get excited
This is one of the most sensible and accurate news articles I’ve seen on property in a long time.
Congrats to ABC for not overdramatising information for clicks.
Final Thoughts
If you’re going out to opens this weekend, make sure you keep some cards close to your chest!
Whilst prices are dropping due to reduced borrowing power, the number of people at opens appears to be going up with long lines shown at houses all over different parts of Australia.
I suspect this year will be a big year for investors.
Thanks for reading this far!
We value feedback and if you have any suggestions on what you would like covered in the future please email me at tristan@tomii.com.au
Happy Buying!
Note: This is my opinion, please seek your own expert advice when making decisions.
