When he went to buy his own home years ago, Smart Property Investment’s Alex Whitlock came to negotiate with his buyer’s agent—a smart decision that “neutralised the process” and helped him save around $150,000.
He shared: “I went along and saw the property, I met the agent, did all preliminary stuff, let the agent know it was a serious buy. But then, I said, ‘Look, I’m an investor. I’m going to treat this the same way I would my investment properties. I’m going to introduce you to my buyer’s agent.’”
“I got the property on a price I was very happy with. I would have paid $150,000 more. The buyer’s agent… he knows how to deal with agents. He [deals] with agents everyday,” the property investor added.
Trusting the experience and expertise of a buyer’s agent turned out to be one of the best property investment lessons for Alex, as well as for all those in the business of creating wealth through property.
According to Charles Tarbey, chairman of one of Australia’s largest real estate networks, having an agent negotiate the price of a property for you will take out the “emotional aspect” of it.
Having professionals negotiate for both the buyer and the seller will benefit both parties because, at the end of the day, their job is to match both parties’ needs and make the most out of their own current circumstances.
“That’s where it goes wrong, [negotiating it] with the emotional aspect,” he said.
“You [should] neutralise the process. You’ve got a buyer’s agent acting for the buyer and a seller’s agent acting for the seller. They’re going to go head to head with each other to make it work.
“The best real estate practitioners are the ones who are trained to communicate a message, the ones who are trained to build a relationship with both parties and ensure that they understand the needs of the buyers and sellers and they match those needs.”
Success in property investment entails good discernment, and for seasoned investors, being able to make the best decisions requires the assistance of reliable property professionals who are willing to understand your journey—from your goals to your capabilities and limitations.
After all, what could be a better way to navigate through your property investment journey than with people who have spent most of their lives studying the markets and its implications to provide good service to property investors?
“Today, people need somebody to help them make decisions because there’s a lot more stuff coming on and we need to make sure that… we get through to what we want. You need somebody in there to negotiate for you,” Charles said.
“You’ve got to pick who you're buying through and you’ve got to negotiate effectively. Often you need to step out of the negotiation to make it work.”
Tune in to Charles Tarbey’s episode on The Smart Property Investment Show to know more about the secrets to negotiating with real estate agents to secure the best outcome for your property portfolio, as well as how property investors can work more effectively with real estate agents and sellers.