Has the Buyer Paid Their Best Price?
Jon Bahen and Adrian Abel discuss how to ascertain when a buyer has paid the best price for a property. Sometimes an agent feels they might have achieved a better price for a property and Adrian and Jon weigh up the factors that determine how to best calculate what price can be achieved versus the actual price the property reached. See video transcription below.
Adrian: It’s Adrian Abel here and I am sitting with Jon Bahen from Abel Property in Cottesloe. Jon, very simple question how do you know when a buyer has paid their maximum price?
Jon: Well, it’s difficult to look right inside the buyer’s head but it is all about exploring a buyer before you sit down at the table, understanding what their motivations are and understanding, having a reasonable understanding of their financial capacity. Often in a marketing campaign you have the opportunity and you generate multiple offers and that’s the ideal situation, where you get that competitive atmosphere around the purchase of a property and you have that fear of missing out and that’s really what brings a buyer to the table; it’s the fear if they are not buying it today someone else might and it’s that call-to-action that surrounds an effective marketing campaign.
Adrian: I often find as a buyer myself of product, sometimes I pay a price and I would have paid more if they had asked me. It’s a really interesting space. In our world as agents, we need to ask the question and it is not as simple as I want more money. It’s about whether or not the buyers are prepared to lose the property for the sake of that little bit extra and the fear of loss that you talk about is something that we have got to unpack for both buyers and sellers and get them to understand the cost of not buying that property at that time.
Jon: Look, I think when you sit down with a buyer, you need to do it in an atmosphere that is very private and so we can explore every avenue of that buyer’s capacity and his motivation and there are a lot of signals that you’ll pick up just from 20 or 30 years of real estate experience that will indicate when a buyer is backing off or still participating in the negotiation. And I think that just really comes through experience but also, it’s the agent’s role to make sure the buyers are fully informed and comfortable about where the market value of that property is, so it’s providing relevant information and support of data so they’re not just stabbing in the dark.
Adrian: As clients, if you are interested in understanding more about the art of sales and picking up complete artists, give Jon or one of us at Abel Property a call.