Chapter 1: What is the main topic discussed in this episode?
It's the Real Estate Podcast across every state, city and town of Australia.
And welcome to another episode of the Real Estate Podcast available on iHeartRadio every morning and on Spotify and Apple and wherever you get your podcasts from. Well, finally, a Friday has arrived. Yes, the 19th day of August for 2022. And coming up this morning, because it is a Friday, we're going to be looking at that all important question of how to negotiate from a position of strength.
when buying property. And talking of property, shipping container homes, they are not a new concept, but are having a bit of a resurgence because of their affordability. In Cairns, there's a two-bedder container home and shed, which you can get for around $399,000. It's been listed. It's located on an elevated block with three architecturally designed 20-foot containers.
And there's also one that's about 45km from Bathurst in New South Wales. Now this home, also a container home sitting on a hill, and the new owner is going to get a parcel of land which is 113 hectares. And the asking price is between $450,000 and $490,000. So, you know, that's not too bad, is it? 113 hectares with your container home this morning.
We are just as addicted to property as you are. Every weekday morning from 6.30. From first home buyers to property investors and everything in between. Every morning on The Real Estate Podcast. It's the main centre forecast with propertybuyer.com.au.
And around Australia we go to check on your weather on this Friday morning. And first we go to Sydney, expecting a few showers today. 19 degrees is your forecast high. Melbourne also one or two pieces of rain and expecting a high of 15 degrees.
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Chapter 2: What strategies can help you negotiate from a position of strength?
Brisbane, sunshine with blue skies, 25 is your forecast top. And in Perth, cloudy but dry today with 19 degrees.
It's the real estate podcast across Australia, seven days a week. Let's Talk Property, a podcast series with Rich Harvey.
Well, after a year and a half of incredible price growth, sellers are no longer, yes, no longer sitting in the box seats. And if you look at a Sydney or Melbourne in particular, they've gone past that inflection point in the market. Now when listings were low and there were plenty of buyers, vendors could make extraordinary demands around price and conditions.
They knew that if the first prospective buyer didn't play ball, there would be a dozen or so just waiting for their chance. Now, we're most likely at a point of rebalance where dominance in property dealings can swing either way. So how do you negotiate from a position of strength when a market is in a state of change?
Well, to help answer that complex question, we have Rich Harvey, buyer's advocate and CEO of propertybuyer.com.au. And a very good morning to you, Rich. A busy week?
Yeah, good morning, Craig. Always a busy week. It's been a good one though. So our team's really kicking some goals this week with some new purchases for our clients. So we're very happy.
This is a good one to discuss because we're sort of right now, the market is even evolving in August. So how would you characterise the market? Is it a buyer's market or are some people still holding on to the seller's market position?
Well, Craig, first of all, we've got to remember there's not one market that we're talking about. Right across Australia, there's 15,000 suburbs. So we can't just put a particular number or a single comment to say this is how the market is. each suburb has got individual characteristics and it's got its own supply and demand drivers.
But what I can say, generally speaking, the mood of the market and where it's at right now is that we've seen the Sydney prices drop around 4.5%, Melbourne around 2.5%. When we got that first rate hike in the May federal election, that signalled a dramatic turnaround for property owners. It's turned into or turned from a seller's market into a buyer's market, but not in every area.
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Chapter 3: How is the current property market evolving in Australia?
So I thought, you know what? This owner is pretty keen to sell. So I put in a cheeky offer of 1.7 because I actually didn't think we had much chance of buying it. I then increased my offer three times and we ended up buying it at 1.86. because we had another buyer come in as well.
We had a bit of competition, but I was able to nudge that buyer out by just $10,000 because I had a particularly good relationship with the agent and I got particular insights into how they were negotiating and where I needed to be. Just having that relationship with the agent can sometimes mean the difference between getting a deal and not getting a deal.
So what do you think about the strategy of having multiple property options?
I think this is the best strategy, Craig, and I'm really pleased you raised it. So if you're a property buyer, you're going to be finding one property and you might fall in love with it. But what you've got to do is have option B, C and D up your sleeve. It's incredibly powerful to be able to say to an agent, you know what, if we can't get an agreement on this, that's fine.
I've got another property down the road that I'm going to buy. because then there's a fear of loss for that agent and a fear of loss for that vendor that they may not get the price. This is a particularly good strategy in a declining and correcting market. It doesn't work in a rising and really hot market, but right now, having those alternative properties is a fantastic way to go.
The other thing you've got to think about is what if you can't actually buy the property? It might just mean you need to keep renting, you might need to look further afield, but having those other options is a really key power play in your negotiations.
And finally, to wrap things up, what's a few tips for our audience with relation to successful negotiations?
Well, I've alluded to one before, Craig, and that's to stay well connected. You've got to have good relations with selling agents. They're at the coalface of new listings and with market movements. And maintaining really good lines of communication is really important if you're looking for a property that's got limited stock in a certain area.
And once you've made that offer, you've got to stay in connection with the agent on the progress. Don't let 24 hours go by without getting an update from that agent. Another tip is to rely on a professional bias agent. Having someone who's stepping in the fray removes all of the emotion and they just provide a hassle-free solution. And they can give you particular guidance
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