When it comes to the subtle art of negotiation, there are many ways the parlay can go. Being a good negotiator is a tricky skill to master, requiring a well-rounded knowledge of your subject matter, and a keen adeptness and ability to think on one’s feet.
While investors could of course choose to take the proverbial bull by the horns, and negotiate their own real estate transactions, many are opting to hand that role over to an impartial professional these days. And for good reason…
Why use a third party?
Property industry professionals, who themselves have had decades of experience working at the coalface of our housing markets, will often be the first to admit that they engage the services of a third party expert to negotiate their own personal real estate acquisitions.
While real estate agents can generally negotiate very effectively for another person, they often fail to formulate the best possible transaction on behalf of themselves.
They will tell you that a third party helps to make the process a more neutral one. The presence of someone with no real emotional investment in the deal evens the playing field somewhat, which is why vendors engage real estate agents in the first place.
Another aspect third parties bring to the negotiation table is the capacity to see how a deal should be formulated and assembled, in order to work for everyone involved.
Buying and selling residential real estate is a very emotional process, because it’s always a significant investment. Eliminating that emotional element as much as possible, through a third party, means negotiating from a place of detached observation and logic. What will work for everyone in this instance?
This means the process is less likely to derail, and more likely to see everyone walk away feeling satisfied with a favourable outcome.
Knowledge you need
Given the rapid-fire changes occurring in our markets right now, particularly around the almost daily shifts in the lending landscape, a keen understanding of the location in which you are buying, and the value of the asset in question is more important than ever for investors.
In a climate of mixed market messages, having a reliable support team is the best way to mitigate risks associated with building a real estate portfolio as a successful investor.
One of the most essential members of your team will be the person who negotiates on your behalf. They can save you thousands at point of purchase, and even facilitate terms of the transaction to make it work for you in other ways as well. Such as early access if you want to do some renovations before renting out the dwelling.
Importantly, they will know whether the proposed investment is worth it, according to your long term wealth creation plans and objectives, and how the cards stack up at any given time in the marketplace with regard to local property values.
Of course it’s not just the negotiation of the property investment itself you should seek assistance with, but the finance required to secure the asset in the first instance.
Most people don’t realise how powerful an experienced and market wise mortgage broker can be as a fellow negotiation partner in the property game. If it’s long-term traction and value you want from your property portfolio…that third party perspective can go a long way, to saving (and earning) you thousands more in future equity. Just a little something to think about…