A hasty decision that could cost you $13K on your home sale
How a poor negotiator cost a homeowner thousands of dollars!
I would like to share with you an example of how a poor negotiator cost a homeowner thousands of dollars. Two agents appraised the house from $290,000 to $310,000 and the sellers chose the agent who offered the cheapest fees. On the surface it makes sense doesn’t it?
Scenario 1: Bad negotiator
- Property Sale Price: $290,000
- Agents Fees: $5,000 flat
- Owner Netts: $285,000
The people who bought the house were clients of the agent who wasn’t selected and they told the agent that they were really happy they got the house for $290,000 as they were prepared to pay $310,000. When asked how they got the house for $290,000 they said they asked two questions.
‘Why are they selling’ to which the agent responded the owners were divorcing and desperate to sell.
‘What will they take?’ to which the agent responded that they would take $290,000. So despite the fact that the buyer was able and willing to pay $310,000 they laughed all the way home as they offered $290,000 and soon after were congratulated with ownership of the property with a massive saving of $20,000.
If a good negotiator had been asked those two question they would have responded very differently:
‘Why are they selling?’ – The owners are relocating.
’What will they take?’ – The only price I am authorised to quote is $310,000. To which the buyers would have responded with something like ‘Come on, everything’s negotiable! What are they going to take?’
The good negotiator would respond with ‘As I said the only price I am authorised to quote is $310,000 but what sort of figure did you have in mind?’
As these people were reasonable people they more than likely would have offered $300,000 and a good negotiator would have got them to $310,000.
Scenario 2: Good negotiator
- Property Sale Price: $310,000
- Agent Fees: $12,000
- Owner Netts: $298,000 -
- +$13,000 more than the bad negotiator.
What a difference a great negotiator makes. Do you want to get the very best price for your property? Then you must select the best negotiator to represent you. The saying goes that:
‘Good things are never cheap and cheap things are never good.’
Therefore if an agent can’t negotiate a good fee for themselves how on earth are they going to be able to negotiate a good price for your house. Remember you can only sell your house once, so make sure you get the best negotiator and therefore the very best price for your house.
About Michael Kies
MICHAEL KIES is renowned as one of Australia’s top real estate salespeople, having won awards both on a national and international stage. He averaged over 11 sales per month throughout his career. He was once described as “a selling machine”. In 2008 Michael was diagnosed with leukemia. After years of treatment he decided to sell his real estate office and pursue his growing passion – helping sales people to reach their full potential. Michael believes that all sales people are capable of doing what he did – making large numbers of sales in less time. Now Michael travels across Australia sharing his secrets to sales success.