Get exclusive property tips and go behind the scenes of Ep 9 of Location Location Location Australia.
It’s Essential for Both People in a Couple to get out and Look at Property.
I was actually surprised that Erin & Allan agreed so readily on the Belgrave house. It was Erin's dream to live amongst the trees and she had spent some time out looking at houses, so she had a pretty good idea of what their money would buy.
Allan, on the other hand, asked for everything else. And this was not helped by the fact that until we met them, he had left almost all of the property searching up to Erin. This is something we come across all the time, particularly in my business. It is interesting that women seem to do the lion’s share of the house hunting. It is a common refrain from wives that they pound the pavement getting an understanding of the market only to have their husbands turn up their noses at the properties that make the short list.
The biggest hurdle for Allan was to get his head around the fact that there were no level blocks of land in the mountains, also that there were almost no brick homes, and garages were a rarity in their price bracket. So all the things on his wish list had to be given up unless they chose to live in suburbia, something which neither of them were keen on. To give him credit, he very quickly came to grips with the issues of the area and ended up being very reasonable in his expectations.
Good Negotiation is More than Just Money
Each episode of this show is just 48 minutes long and we cram a lot of house hunting, soul searching and real estate know-how into that time. So, often the intricacies of each negotiation can’t be covered in full.
In this instance the initial offer of $360,000 was made with a 5% deposit (amounting to $13,000) and it was rejected. As Erin and Allan were preparing to increase their offer, something the agent said to me flagged my interest. I got the sense that the major issue wasn’t the actual amount of the offer, rather it was the amount of the deposit (and the vendors wanted access to this quick-smart). Now, they couldn’t manage the full 10% ($36,000) but they could increase it to $30,000, which was enough to make a sale price of $360K palatable enough to be accepted. No price increase required!!
There are often other elements that can be pulled into a negotiation, and while price obviously has the most clout, sometimes terms can be introduced to make a lower offer more attractive. In this instance the owners needed access to the deposit and the amount needed to be substantial enough so they could buy another property. Some other terms that could be included in a negotiation include settlement period (shorter or longer than standard, depending on whether the vendor has bought elsewhere or not), inclusions (agreeing that the owner can take their heirloom chandelier or letting them leave behind an old built-in fridge that would cost a fortune to remove). I have even been involved in a negotiation where the new owners agreed to take on an old cat and got a discount for the privilege!
If you would like to read more of Veronica's insights on the property market, particularly in her own backyard of inner Sydney, go to
Veronica Morgan’s blog.