Why property investors should avoid negotiating for themselves
Many property investors nowadays often use agents to negotiate for them. While investors can definitely do it for themselves, others believe having a third party for negotiation is indeed the best way to navigate one’s way through the process.
Century 21’s Charles Tarbey, who has been working professionally on the field for more than four decades, he never handles negotiations for his personal property purchases despite his vast experience and expertise.
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“I’m the worst negotiator for myself but I’m not too bad for somebody else,” Charles said.
”I think there should always be a third party in negotiation… It doesn’t have to be a buyer’s agent—just a friend or a family or a relative who can build that relationship with somebody and not damage the one you might want to have.
“If your third party flies, you can always step up and say, ‘Charles probably went in a little bit hard. I’m sorry. We really want to buy the home.’ I think it gives you a second chance at purchasing a property.”
A third party can help neutralize the process by taking away the so-called 'emotional aspect', which could often derail the negotiation according to him.
Additionally, if an investor chooses to work with a professional buyer’s agent or seller’s agent, they often get a good deal at the end of the negotiation process because these agents are trained 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.
“When you’re buying or selling residential real estate, it’s a really emotive time. [Relationships] can be easily damaged because of that.
“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.”
As fast as the marketplaces are changing, property investors need to be more discerning of the decisions they are making — from setting their financial goals and building good investment strategies to finding a good investment properties and maintaining an income-generating portfolio.
For many successful investors, having a reliable team around you is the best way to navigate their way through this complicated and often unpredictable journey instead of doing it all on their own.
“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.
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