Paul Wrigley from Ray White Real Estate Toronto shares this article about tips on buying a property and deciding whether the agent is telling the truth or not.

There Is Another Buyer…

Written by Peter O’Malley Wednesday, 05 December 2012

What do you do if the agent tells you there is another buyer on a property you are looking at?

There are a few simple rules of negotiation to keep in mind when you are faced with the “other buyer” situation: Remain open to all possibilities. There may not be another buyer, but there may be.

Focus on what the home means to you and what it is worth to you. Disregard what other buyers may or may not do and what they think the home is worth.

When making an offer, don’t play games with what you think the home is worth. What is more important? Buying the right home in the right location or risking the home to try and save $10,000 or $20,000? Offer in writing your best price for the home and walk away
if it is not accepted by the vendor.

If another buyer is prepared to pay more than you, emotionally let go of the property.

When a property languishes on the market, it is usually because the owner is looking to sell above market price.

Should they adjust their price expectations down to the current market price, they will often attract multiple buyers. As a seller, you know you have hit market price when multiple buyers try and buy your home.

Yes, some agents will lie. They will say there is another buyer when there isn’t. In nearly all circumstances, the agent’s lie will come to the surface in time. Creating a non-existent buyer is the most incompetent negotiation tactic an agent can use. Just ask yourself, is what the agent telling you making sense? A fibbing agent will become obvious the more you engage with them. Ask lots of questions and the truth may become apparent.

Agents will tell half truths, such as another buyer offered more than what you have offered. The half truth being that the other buyer made the higher offer 6 weeks ago and has since bought elsewhere. Yes, welcome to real estate poker!

Surprisingly, some agents will tell you the truth. Even though the home has been on the market for 3 months, there are now 3 buyers interested in buying it. Yes, this may seem dubious. Some may say it’s Murphy’s Law conspiring against you.

 

Paul Wrigley from Ray White Real Estate Toronto advises buyers to do their homework when buying so they know what fair market value is. Don’t play games and try to pay less as this may lose the property for you. For any advice on how to buy please call Ray White Real Estate Toronto on 02 4959 6577