Mick’s Stories on Losing Thousands

3. If done correctly, negotiations can result in mutually beneficial outcomes for everybody involved.

You can either be honest or dishonest when negotiating the purchase or sale of a property. To play the game fairly, you must be aware of the inherent dishonesty in real estate. Preparation is the key to a successful negotiation. It is possible to feel confident in negotiations if you are well-informed and ready.

An agent's job is to maximise the price of a client's property. As the commission is paid by the seller, the agent has a moral and ethical duty to look out for their best interests. This almost never occurs, leaving the seller at the mercy of a greedy agent who is only interested in making a quick buck. The agent rarely has the skills or integrity to negotiate fairly and thoroughly. A vendor can lose a lot of money due to incompetence like this. Real estate agents deal with more than just houses when they help clients purchase and sell properties; they also deal with the emotional feelings that come with these life transitions. I'm not implying that all agents are horrible people; rather, the problem rests with the structure of the industry itself, which often requires agents to lie in order to advance their careers.

In the real estate industry, it is common to have only one transaction with a client, as is often the case when a seller is relocating. If they plan to stay in the house for a long period, even the purchasers may not need an agent for a long while. Agents are not incentivized to provide outstanding service because they can build a career based on commissions and clients who may never return. Despite their best intentions, even an honest real estate agent may have trouble always acting in their client's best interests.

Neil Jenman states that there are simple rules to negotiating your property:

1.     Be fair.

2.     Be realistic.

3.     Be aware of all parties’ emotions in the transaction.

4.     Be careful with verbal commitments.

5.     Do your research to gain the knowledge you need to negotiate.

The best advice I can give you is - If you can't locate a trustworthy agent to represent you, then you should try selling the property on your own. If you are aware of the ins and outs of the industry, selecting the best agent will be a breeze. You, as the seller, should be the boss and an expert in the area. Only then will you be in charge, not the agent.