Hard Line Approach & Types of Agency

I will only tell you that there are many things that can go in your favour if you approach this exercise of buying a property from a hard line attitude.

Unfortunately, this is not the forum to throw out general sweeping statements. This can be very misleading to the Buyer and the Seller as well.

Understand that as an agent, I wear two hats. As a Buyer's agent, I will encourage my client to go after a better house and offer the owner less. As a Seller's agent I will tell everyone that the house is worth more than the asking price and should be listed higher, but if they hurry, they can buy this one at the current listed price. Guess what? More often as not, there is a fair market price achieved by the parties involved.

Dual agency

One who has listed a property for sale and has a buyer as well

There are occasions when I have had a listing and find the Buyer for my Seller. This is not a difficult situation. The main issue is whether or not the Buyer is offering a fair price for the property relative to the neighbourhood. I am as fair as is possible to both parties and I have yet to have a situation where one or the other walks away unhappy.

Buying Agency

Sometimes taking a hard line works

Every case is different and should be approached from a site specific point of view. Suffice to say that if I was buying a property for myself, I would fight as hard as I could to get the property at a lower price if I can prove to myself that the property is not worth the current listing price. This is a good stand, if and only if, it is a Buyer's market.

"A Buyer's Market" is a questionable term. The best way to define it relative to the marketplace since 1996 would be to say that if a property is on the market at a given listing price and has not sold for a few months, then the most important reason for it not selling is one of price. It must have some negatives if all others in the neighbourhood are selling at the same price or higher. It could be the house needs updating, which means that it does not show very well. A major negative of a highway, or being on a major road or graveyard etc. causes the property to be less desirable. Being hard lined is saying "this house is overpriced and you should offer less than the listing price and see what happens when it is presented. This is the tip of the iceberg or opening a can of worms if you like. I have seen so many variables when it comes to buying, I would have to make this page about 5 times as long as it is. Rest assured that my experience covers most issues and I have a plethora of experience when a buying agent.

There are subtle and not so subtle ways of getting a property at a reduced price. It is my job to assess the situation when presenting an offer. Do I go with my hat in my hand (I don't wear hats). Knowing that they will sell for around 75%-85% of the listing price. You will have to talk to me or your agent to learn more about what I am saying.

 

Selling Agency

Fortunately for Sellers these days, since 1996, it has been a relatively strong Seller's market and one is usually being advised to pay closer to the list price and in some cases more than the list price in order to buy the property.

I had a perfect example of a Seller taking a hard line approach in the summer. She just said List Price and that was it. The Buyer paid what she wanted

I also had a situation in the spring of 2000 where I had a Seller who was out of town and was not sure of the value of her property. She expected to get a sale price of around $240,000. I told her that she was wrong and would get $300,000 or more. I suggested to list the house at $299,000 and we would probably get around $320,000 or more. She wasn't sure, but went ahead with the listing. We ended up getting $326,000. A happy Seller because I knew what the values were for her neighbourhood.