Buyers Advocate Melbourne

Many people will seek advice about the best way to negotiate for an object.

Home buyers can fall into the trap of having one negotiation stance especially when dealing with real estate agents.

The problem with one adoption is:

• Each situation is different
• Every agent/ vendor is different
• The property is different
• Competition ( other buyers ) will differ

One adoption or method such as the ‘take it or leave it’ can often disadvantage when used incorrectly.

People operate vastly different, yet most gravitate to either a red, blue or purple negotiator.

A Red negotiator:

• View a negotiation as ‘Zero Sum’.  I win,  you lose
• Think the outcomes is more important that the relationship
• Use forceful negotiation ploys

A Blue negotiator:

• Value the relationship over the deal
• Often give away more than they receive
• See the negotiation in a longer term view

A Purple negotiator:

• A hybrid of the two
• Better negotiators will often take the best aspect of each and merge them together

It’s important to note that a red negotiator will exploit a blue negotiator.  Yet the outcome a purple negotiator reaches will often eclipse the red negotiator.

Different attributes are required for different situations.

According to wikipedia a ‘contrarian’ is one who attempts to profit by investing in a manner that differs from the conventional wisdom, even when the consensus opinion appears to be wrong.

We see signs of this in the property market all the time. It wasn’t too long ago that many people refused to invest or purchase period homes. Buying in the inner city was also un popular yet some of the greatest fortunes in Melbourne have been built by acquiring inner city property when no one else would.

Two very differently used tactics for negotiations can be stalling and striking.

Striking means seeing an opportunity and pouncing before anyone else has a chance. A very effective way to buy property in a good to solid market.

Stalling can work when you really aren’t fused about the outcome. These can also yield good buying oppurtuities especially in achieving large price drops. Also this can be used when other interest is almost non existent.

Hovering is more of a concern. By being too unsure or being unable to make a decision – Hovering is what I see many entrants into the property market go through. Any advantage or control is quickly lost and the less control you have of the outcome.