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 negotiatorStarting with a mistake

  • 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.

hasty decision that could cost you

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 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.

seven hills real estate agent NSW
Cnr Federal Road Prospect Highway Seven Hills NSW 2147 Australia