Posted to Herald Sun (8/10/2011) on 8/10/2011 at 1:57 AM, 9:38 PM
Commenting on “Melbourne home buyers paying $90,000 too much – report”
http://www.heraldsun.com.au/news/more-news/melbourne-home-buyers-paying-90000-too-much-report/story-fn7x8me2-1226161600542
Many buyers do pay at least 10 to 15% more than they should. They have little or no negotiation skill and are far too eager to offer higher than worth when they see the property that suits their need. Unfortunately, they really think that they become experts in the real estate field after a few months of house hunting, or after a few buying or selling experiences. They forget that an average real estate agent (representative) has to sell/list a property a week to break-even, or about 40 over the year. In good times the number can triple or quadruple.
Just remember, a real estate agent is playing the devil's advocate - he has to sell the property on the behalf of the owner in order to get his commission. In theory he is trying to get as much as possible for the owner (principal). If he is looking after the owner's interest, how can he look after the interest of the buyer at the same time? At best, he achieves a compromise for both parties.
I am neither a buyer advocate nor seller advocate. I guide my "client" at every step of the buying or selling process, including price negotiation. It is more than just naming a price; it is a chess game and requires a lot of crystal ball gazing.
Commenting on “Melbourne home buyers paying $90,000 too much – report”
http://www.heraldsun.com.au/news/more-news/melbourne-home-buyers-paying-90000-too-much-report/story-fn7x8me2-1226161600542
Many buyers do pay at least 10 to 15% more than they should. They have little or no negotiation skill and are far too eager to offer higher than worth when they see the property that suits their need. Unfortunately, they really think that they become experts in the real estate field after a few months of house hunting, or after a few buying or selling experiences. They forget that an average real estate agent (representative) has to sell/list a property a week to break-even, or about 40 over the year. In good times the number can triple or quadruple.
Just remember, a real estate agent is playing the devil's advocate - he has to sell the property on the behalf of the owner in order to get his commission. In theory he is trying to get as much as possible for the owner (principal). If he is looking after the owner's interest, how can he look after the interest of the buyer at the same time? At best, he achieves a compromise for both parties.
I am neither a buyer advocate nor seller advocate. I guide my "client" at every step of the buying or selling process, including price negotiation. It is more than just naming a price; it is a chess game and requires a lot of crystal ball gazing.
