Negotiation starts the moment that you speak to an agent. If an agent is any good they will be paying attention to how much interest you are showing in a home and the questions you are asking. So as a buyer how much do you give away?

There will be three types of sales,
- Auction
- Private Sale Competition
- Private Sale No Competition

An auction favours the buyers in many ways. There is no real negotiation unless the property is passed in, and even then you hold the advantage knowing you are the highest bidder. Otherwise you just have to stick your hand up to see who comes out on top.
In this case you want to register your interest by asking for contracts and saying to an agent that you would like to know if any pre offers are made. You don't need to reveal your price range or budget, just that you intend to bid at auction. Keep the agent guessing.

If you are competing for a property and there is a lot of other offers you will have to decide what you are prepared to pay. It is not a so much a negotiation with the vendor but understanding what the vendor really wants. Settlement periods, special clauses such as finance and deposit levels can all be used to make your offer more attractive than the competition. In other words you need to put your best foot forward.

In the case that you make an offer and there is no competition you need to play the negotiation game. This is where you don't want to give too much away especially up front. The vendor will start high and you will start low and the theory is that you will meet someone in the middle. The skill is in making them feel like they have had a win and again considering negotiating with not just money but timelines and clauses.

To take your buying skills and negotiation to the next level I will be releasing my coaching program next month so watch this space!