Never Say These 5 Sentences To A Real Estate Agent

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The Property Academy Podcast 15 min 2 speakers 3 chapters transcribed 5 hours ago
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What should first‑time buyers avoid saying to a real‑estate agent?

Stephen Knight 0:08
Hello and welcome along to the Property Academy podcast by Opus Partners. I'm your host, Steve McKnight, and I'm Andrew
Andrew Nichol 0:13
Knuckle.
Stephen Knight 0:13
And this is the show that helps Kiwis go from zero to five investment property so you could be financially free and stick around for the next 15 minutes because you're gonna learn the five phrases you should never say in front of a real estate agent. Should you actually put in your highest offer when you're in a multi-offer situation and the most underrated negotiating tool? Now, you've got to remember that if you're a property investor and you're buying houses, the real estate agent, they don't work for you. They work for the seller. They're engaged by the seller. They're paid by the seller. You're not the client. You're effectively the customer. But what should you really say and what should you not in front of a real estate agent?
Stephen Knight 0:56
What do you reckon is mistake number one? Well mistake
Andrew Nichol 0:59
Thing number one is telling the agent your maximum budget. Now, I get it. It's one of those natural things that comes out in the first 30 seconds, like we're pre-approved for $850,000. Which sounds quite helpful because it kind of gives the agent a bit of a guide, but you've just told the vendor what your ceiling is as far as how high you could go to buy this property. And every negotiation is probably going to start or or at least be targeted towards that and works backwards from Yeah.
Stephen Knight 1:26
So what would you say instead in front of a real estate agent? If they're kind of digging
Andrew Nichol 1:32
Down into into how much you pre approved for, for example. I'd probably say your budget depends on the property. Or we're looking at houses between seven hundred and eight hundred thousand dollars, which is potentially true. It's not evasive. You're not gonna sound like a bit of a duke trying to hide things, but it doesn't tell them your maximum dollar. When you were buying your house, I mean, I know you you are evasive at the best of times. How would you answer that question?
Stephen Knight 1:58
Well, if it was a house I didn't like or I didn't really care about and they asked, I'd just say I'm looking at properties between X and Y. And I remember saying that to one agent and they were like, Oh, you could buy this house. And I was like, Yes, but I don't like it. So so Did you say that? Yes, yes. I don't buy, just tell the it's like you're how pig the b right? Like if you say to an agent They're not
Andrew Nichol 2:20
gonna chase you.
Stephen Knight 2:20
I don't like this house. You've just saved them time because now you're not pretending that you're going to be a serious buyer. So I've had no issue at all telling agents I'm not a serious buyer if I look at a house and I don't like it. But for the ones that I do like, I would typically say we're looking at at houses around this mark, or I would actually typically flip it around the other way and say, I know you and your vendor have had a discussion about price. What does a good offer look like? My other favorite question is what offers has the vendor already rejected? That's my favorite one because the remember the agents aren't allowed to lie to you. So if you know what what offers have already been rejected, that can give you a sense of a minimum price.
Stephen Knight 3:05
Having said that, there have been times where sellers have rejected an offer, and I've offered less than that. Anyway, because that offer was ages ago. It's also got me into trouble. But there we go. Mistake number two is what I call falling in love out loud. So if you walk into the kitchen and say, Oh, Deadry, this is the one. Oh, I love it. If your partner gets out the measuring tape on the first viewing and starts measuring the couch, oh Sheila, we can fit the good couch in here. Or
Andrew Nichol 3:34
you Lauren did this when we were wandering around our house.
Stephen Knight 3:36
Yeah, or if your kids start picking bedrooms, oh yes, that'd be little Timmy's room and that'd be little Sally's room, all in front of the person whose job it is to get the highest price for the vendor. And the reason I I suggest not falling in love out loud is if you talk that openly in front of the agent, they can start reflecting all of these things back to you to keep you emotionally.

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