Today’s property market is different to what it was a few years ago.
You see, investors could make low ball offers and have a good chance of having their offer accepted.
Now, prices are rising, property is becoming ‘expensive’, and there are reports of bidding wars breaking out and properties being snapped up before the agent has had time to even list the for sale board, agents don’t need you as much.
But armed with the right knowledge, you have a greater chance to be the victor in your battle to buy a property through estate agents, without paying more than you should.
Here’s How
Using the Law of influence to get the deals that majority of the investors never get to see, deals which are sold before they go on to the market and deals that only investors with banker status get:
RECIPROCITY
You:
- Provide the agent with viewings to meet their viewings targets
- Have knowledge and education of investment, development or business/wealth skills
- Find out what their importance driver is (status, wealth, financial freedom) and help them to achieve it
- Reward the agent with champagne or gifts as thank you’s for deals (make it a surprise!)
- Well-timed random gifts (that don’t look like bribes) work well too.
- Random acts of kindness – things you can do for them
- Reverse reciprocity – get them to do things for you…they will feel more committed to you
AUTHORITY
You:
- What does your Reputation, credibility, professionalism say about you?
- Show your knowledge of the property market and property in general (local prices, street names, yields and rentals, finance (the agents might not understand it all; don’t baffle them, you will lose rapport) – there’s a fine balance
- What have you done, what you have bought, how much money you have (not in a ‘Big Shot’ way), will all help when building essential rapport
COMMITMENT AND CONSISTENCY
You:
Consistency
- Change can cause a lack of trust. Behave in a consistent way: your dress, your behaviour, the solicitors you use
Commitment:
- Your word is your bond. Keep to it.
- Commit and go through with your promise and trust will be a given.
- Set small initial commitments to prove your credibility and trust (i.e. survey date, searches, exchange)
- It is a great idea to do this on a really small scale at first, as it will build trust and when it comes to getting deals, they will believe you
LIKING
You:
- The most simple yet most powerful Law. People will NEVER deal with or sell to/buy from people they dislike. This is a two- way process. Be likeable.
- There are so many investors out there, they don’t need you – there will always be more people who have just watched Property Ladder, so why should they deal with you?
- Use rapport, similar interests, listening, reciprocation so you get the first call when a deal becomes available
SCARCITY
You:
- Used mostly when you are dealing directly with a vendor and you want to act as if you don’t need the deal for negotiation power
SOCIAL PROOF
You:
- Very important because many agents speak to each other and your reputation is vital (transient, incestuous business)
- Proof and evidence: Show/talk through deals you may have done, money you may have in the bank
- Use as Authority: when out on viewings and spending time with agents, you can drop in the conversation you know the price of this house on that street, or that you spoke to this or that agent, or that you bought that house for £100,000. Social proof makes everything real in a world full of B.S.
And that is the beauty of the property market –it’s a people’s business. Apply these small changes in the way you approach the gatekeepers and they will create a myriad of opportunities that will keep you one step ahead of the competition allowing you to outsmart them on hidden opportunities.
But a word of caution:
Don’t get so caught up in the drama that you end up buying a property for more than you wanted to pay, as agents are fairly known to use above Laws of Influence on you!
It’s VITAL you do your research, groundwork and know your limits. Find ways to capture these opportunities.
Make connections with other ‘wheeler dealer’ agents. Get to know your market.
Sweeten the pot, take action and enjoy the process!
And remember that not every opportunity will go your way, but it’s better to have bid and lost than to have overbid and overpaid.
