Speaker 1: You're listening to the Weekend Collective podcast from News Talks by.
Speaker 2: And a very good afternoon. If you have just joined us, well,
Speaker 2: welcome back, Welcome into the show. I'm Tim Beverage. This
Speaker 2: is the Weekend Collective. Were you missed the panel with
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Speaker 2: Weekend Collective. But right now it's time for the One
Speaker 2: Roof Radio Show. And my guest as well, she's well
Speaker 2: known to this to you if you've been a regular
Speaker 2: listener on the One Roof Radio show. She's a financial
Speaker 2: advisor and her name is Debbie Robertson. She's with me now.
Speaker 2: Good day, Debbie. How are you going?
Speaker 3: I'm doing good? How are you doing good?
Speaker 2: Did you hear a bit of a panic getting hi?
Speaker 2: Didn't you have some traffic over the bridge and traffic jams?
Speaker 3: And I didn't come from over the bridge. I came
Speaker 3: this side of the bridge. That there was an accident
Speaker 3: on the motorway. So my eta climb by the minute,
Speaker 3: and I was thinking I'm going to be late.
Speaker 2: Actually it is fascinating the old Google Maps, isn't It says,
Speaker 2: so you're going to take seven minutes. I usually think,
Speaker 2: I'll bet you I can find a way that will
Speaker 2: get me there in six.
Speaker 3: I was stuck, like, no exits, oh no, yeah, oh.
Speaker 2: Well, it's good to have you here.
Speaker 4: Now.
Speaker 2: Now we're going to have a chat about well that
Speaker 2: there's been a report out from the core Logic which
Speaker 2: anticipates home values which will rise. The actual numbers will
Speaker 2: rise about five percent this year, rise through a number
Speaker 2: of suburbs. But the headline for it is to do
Speaker 2: with the fact that, in real terms, basically house prices
Speaker 2: and I take it as being well, here's the head
Speaker 2: let's skip to the headline house prices price is to
Speaker 2: be twenty percent lower in the twenty thirties than twenty
Speaker 2: twenty one, which I take to mean it's not going
Speaker 2: to keep up with inflation. So in terms of what
Speaker 2: else has gone up, property is not going to match,
Speaker 2: and so it's going to be down relatively. But on
Speaker 2: top of that conversation, regardless of what the market's doing,
Speaker 2: what matters to buyers and sellers is getting the price
Speaker 2: you want to pay or the price you want to
Speaker 2: sell for it, so I thought it might be. I
Speaker 2: don't think we've ever talked about the art of negotiation.
Speaker 3: No, I don't think we have there.
Speaker 2: And maybe it's more relevant now than it is. It
Speaker 2: more relevant now than it has been because there was
Speaker 2: a time in the market where the advice would be, well,
Speaker 2: you just need to pay your best price because it's
Speaker 2: a competitive market, a seller's market, and you need to
Speaker 2: just come up with the best figure you can in
Speaker 2: a way you go. Whereas how much room is there
Speaker 2: in the real estate market for negotiation? Can some people
Speaker 2: do better deals than others because they're better negotiators, They
Speaker 2: don't show their hands straight away, And so we want
Speaker 2: your calls on this as well. By the way, what's
Speaker 2: the goal? Are there golden rules on negotiating on such
Speaker 2: a big deal? Because property, you know, it's not like
Speaker 2: negotiating for even a second hand cars might be a
Speaker 2: big expense, but a property, we're talking hundreds of thousands,
Speaker 2: if not millions of dollars. So are you a good negotiator?
Speaker 2: If you've got something you'd like to pass on to
Speaker 2: us and our audience about the keys of negotiating, The
Speaker 2: key to good negotiation Debbie, what's your hot take on this?
Speaker 3: I think negotiating is not just key in the current market,
Speaker 3: it's literally everything.
Speaker 2: Wow. So it is because it's not just a matter
Speaker 2: of finding your best figure in a way you go, No.
Speaker 3: It's a buyer's market. This is literally your opportunity to
Speaker 3: have the upper hand when you're negotiating on the purchase.
Speaker 3: So if you don't know how to negotiate, you could
Speaker 3: not only be leaving tens of thousands of dollars on
Speaker 3: the table, you could be leaving hundreds of thousands of dollars.
Speaker 2: Okay, So what is the biggest mist what's the easiest first,
Speaker 2: biggest mistake that people can I know I've recategorized those,
Speaker 2: but there'll be an obvious one. What's what's the big
Speaker 2: no no that so many people would do?
Speaker 3: Getting emotional?
Speaker 2: Okay, So that means you mean giving all teary during
Speaker 2: the negotiation, like just wanting too much.
Speaker 3: When someone falls in love with the house, all logic
Speaker 3: goes out the window. They're like, I've got to have it.
Speaker 3: And I'm guilty of this myself. You know, I quite
Speaker 3: often tell our clients about how, you know, when we
Speaker 3: negotiate for investment, properties, we negotiate like the thunder because
Speaker 3: it's all about the numbers. But when we found the
Speaker 3: house that we're in now out Forever Home, I walked
Speaker 3: in through the front door and I said.
Speaker 1: Sold, and.
Speaker 3: It's literally like Paul, my husband, he was horrified. He
Speaker 3: was like, maybe you should go and have a look
Speaker 3: at the rest of the house before you tell the
Speaker 3: real estate agent how excited you are. And I was like, no,
Speaker 3: this is it, this is the one. So yeah, Well,
Speaker 3: getting emotional about it takes your power away in the negotiation.
Speaker 3: So whenever you're negotiating, you need to be the person
Speaker 3: in the position of power. And in a buyer's market,
Speaker 3: the buyers have got the upper hand.
Speaker 2: I guess the thing is that if you that's the thing.
Speaker 2: I mean, we're talking about the house you want you're
Speaker 2: going to live in. Probably the big even bigger than
Speaker 2: that is Okay, allow yourself to be emotional because it's
Speaker 2: probably inevitable, isn't it that don't tell the real estate
Speaker 2: agent you love it. Yeah, because they I mean all
Speaker 2: good real estate agents they're like they're like your best mate,
Speaker 2: you know, and people on people, they have people, you know,
Speaker 2: they will make you feel welcome and answer your questions
Speaker 2: and smile on. But it's easy to forget that they're
Speaker 2: acting for the seller. And I'm not demonizing me that No,
Speaker 2: just don't tell them how much you love the property.
Speaker 3: Look, I mean it helps helps with the negotiation, and
Speaker 3: I mean, you know, if you can take as much
Speaker 3: of the emotion out of that process, because at the
Speaker 3: moment when you're looking at how many listings there are
Speaker 3: on the property market, that you've got so much choice,
Speaker 3: you know, so the buyers really are in a position
Speaker 3: of power. They can pick and choose. You can let
Speaker 3: the realistic agents know that you're looking at more than
Speaker 3: one property and you're going to buy the one that
Speaker 3: suits your needs best.
Speaker 2: Actually, is it also about reminding yourself that it's a
Speaker 2: bit like love, isn't it about relationships? You know, when
Speaker 2: a teenager has their first heartbreak, the one bit of
Speaker 2: advice they do not want to hear is like, don't
Speaker 2: worries more fish in the sea, because they're like, but
Speaker 2: that was the fish for me, and they never But
Speaker 2: you do have to remind yourself that, Okay, imagine if
Speaker 2: this house wasn't for sale, there will be another that
Speaker 2: you'll fall in love with.
Speaker 3: Absolutely And if you're looking for an investment property, it's
Speaker 3: actually not about the proper itself. It's about the numbers.
Speaker 2: So shop around would be the other one, wouldn't it,
Speaker 2: Because if you're going to even if you fall in
Speaker 2: love with a property, I would suggest that maybe it's
Speaker 2: important to force yourself to go and look at a
Speaker 2: bunch of others, because then that will give you some
Speaker 2: older perspective where you are not so just like you know,
Speaker 2: focused on the one love.
Speaker 3: When you have had a look at a lot of
Speaker 3: different properties in the same area, it gives you a
Speaker 3: much stronger perspective of what actual market values are. So
Speaker 3: you'll start to see which properties have sold and how
Speaker 3: much they've sold for, and so that reduces the risk
Speaker 3: of you over paying when you're purchasing a property. But yeah,
Speaker 3: when you're buying an investment, it's all about the numbers.
Speaker 3: It's not just about paying less in market value.
Speaker 2: So of course auctions a different thing. Of course, because
Speaker 2: you've got an auction, you've just got to stick your
Speaker 2: hand up until you don't stick your hand up.
Speaker 3: Which even so, like this is the reason that auctions
Speaker 3: are so good for sellers is because people get emotional
Speaker 3: in an auction room, you know, So if you're go
Speaker 3: into an auction, you've got to know your top dollar
Speaker 3: before you put your hand up.
Speaker 2: Can you actually, how often can you successfully preempt an
Speaker 2: action by trying to negotiate? I mean, you want the house,
Speaker 2: you don't want it to go to auction, but here
Speaker 2: you are, you're a buyer. Is there a way where
Speaker 2: you can intervene and basically make an offer and put
Speaker 2: pressure on the seller to accept that without going to
Speaker 2: auction by I don't know saying look, I don't know
Speaker 2: how much interest you've got, but I have to make
Speaker 2: an offer now and we have to resolve it in
Speaker 2: the next couple of days because they've got another house
Speaker 2: I'm looking at.
Speaker 3: There's Yeah, if the vendors are willing to accept pre
Speaker 3: auction offers, then great. You know, you absolutely have got
Speaker 3: the option to put in an offer before the auction day.
Speaker 2: Actually, even if they're not prepared to accept a pre
Speaker 2: auction offer, you can still do it though, can't you.
Speaker 3: Yeah, you can try well. Advise market and real estate
Speaker 3: agents will usually if if the vendor is not willing
Speaker 3: to accept pre auction offers, that realistic agents will probably
Speaker 3: tell you that there's you know, they're not going to
Speaker 3: consider anything less than cash unconditional is the offer.
Speaker 2: Yeah, but they would still have to present, aren't they.
Speaker 2: It's still obligated to present your I'm just thinking in
Speaker 2: terms of the hard board hardball buyers that I've spoken to,
Speaker 2: it's like, doesn't matter, they're obligated to present your offer
Speaker 2: to the seller.
Speaker 3: Well, it depends. My understanding is that if the vendor
Speaker 3: doesn't want to look at pre auction offers, if they
Speaker 3: want everything to go to the auction day, then they're
Speaker 3: the ones that have the final say on that.
Speaker 2: So yeah, okay, what's so what would your list if
Speaker 2: you were looking to buy a property and you're not
Speaker 2: doing it just based on the numbers, like, well, we're
Speaker 2: prepared to pay this because this is how the number
Speaker 2: stack up as an investment. So it's your forever home
Speaker 2: or for the next however many years. What do you
Speaker 2: tell yourself before you negotiate it, or do you get
Speaker 2: to get someone else to do it for you.
Speaker 3: Well, when we bought our home, pools sold. He was
Speaker 3: so disappointed. But he looked at the real estate agent,
Speaker 3: and the agent looked at him and said, so I
Speaker 3: guess I'm negotiating with this one with you, then Paul,
Speaker 3: and he said, yep, so.
Speaker 2: He already you already given the game away because he
Speaker 2: knows that it doesn't matter. He could he could Her
Speaker 2: husband's name is Paul, like, so it didn't matter because
Speaker 2: the real estate agent would know that you want it,
Speaker 2: and so Paul could say what he wants is like,
Speaker 2: I saw your wife's reaction there, this reaction.
Speaker 3: But at the end of the day, the offer is
Speaker 3: only as good as the offer. So you know, Paul
Speaker 3: was pretty hard nosed with the negotiation, and we ended
Speaker 3: up with a good price, a lot less than I
Speaker 3: would have been prepared to pay for. The vendor accepted it.
Speaker 3: So they were happy.
Speaker 2: Oh right, how much? When we're talking about percentages, you
Speaker 2: don't need to mention dollar amounts, But when within a
Speaker 2: percentage of the purchase price that you would have been
Speaker 2: prepared to pay, how much did it save by the
Speaker 2: fact that you weren't involved.
Speaker 3: Probably ten percent? Okay, Yeah, it might have even been
Speaker 3: more than that. Actually I can't remember, to be honest,
Speaker 3: it was it was a few years ago, but yeah,
Speaker 3: I would say it was a good ten percent below. Okay,
Speaker 3: what I would have been prepared to pay.
Speaker 2: We love your stories as well about you know I've got.
Speaker 2: I'd probably have shared the story about buying our place,
Speaker 2: which was a negotiation and it wasn't in competition with
Speaker 2: anyone else. It was simply about finding a number because
Speaker 2: I bought it from our landlord. And I'm not sure
Speaker 2: if either of us was a great negotiator. I think
Speaker 2: he was probably quite generous to me, and I was lucky,
Speaker 2: I think, because we actually must will finish the story
Speaker 2: because and then we'll go to a break and then
Speaker 2: take your calls. So I tracked down my landlord because
Speaker 2: we were deciding let's buy something, and I thought, well
Speaker 2: maybe maybe, and it was a vain hope, maybe he'll
Speaker 2: sell it to us. So I did a title search
Speaker 2: behind the letting agents back. She joked with me, but
Speaker 2: she said, you did me out of a commission, and
Speaker 2: I said, damn right, I did. And I tracked him
Speaker 2: down and we agreed to meet for a coffee because
Speaker 2: I said, look, and I sat down and said, look
Speaker 2: where we are you interested in selling your house and
Speaker 2: we're not doing it because we want to invest in it.
Speaker 2: We're interested because we already live there. We know the place,
Speaker 2: we want to have a family, and we want to
Speaker 2: settle down. It's not about being clever and trying to
Speaker 2: buy something because we think it's a good deal. And
Speaker 2: I went, I think I went to the loo. When
Speaker 2: I came back and he had torn the receipt for
Speaker 2: the coffee in half, and he said, why don't you
Speaker 2: write down a number on your bit of paper and
Speaker 2: I'll write down a number on mine, and we'll exchange
Speaker 2: bits of paper. And so I wrote down a very
Speaker 2: optimistic price, and I mean it was I thought it
Speaker 2: was still a fair price, but I was aware that
Speaker 2: if he'd really wanted to play hardball, and he wrote
Speaker 2: down a number, and we basically when he handed his
Speaker 2: number over, it was what I would have paid for
Speaker 2: it at a stretch. And so I just said, how
Speaker 2: about we split the difference. And a day later he
Speaker 2: got in touch and said, after seeing a Leonard Cohen
Speaker 2: come and having an epiphany, and he said, you know
Speaker 2: what you want to have your family there, give me
Speaker 2: another five grand and it's yours. And so it is
Speaker 2: slightly We met almost in the middle. But that's all
Speaker 2: I knew about negotiation was you write down a number
Speaker 2: and I'll write down one. But I actually thought that
Speaker 2: was I think both of us were happy.
Speaker 3: So had he already listed with the real list? Oh
Speaker 3: so I see, okay, I was going to say, because
Speaker 3: if you'd seen as if you'd seen the realisted agent's advertisement,
Speaker 3: he still would have had to pay the Realisted agent
Speaker 3: the commission.
Speaker 2: Oh no, no. I tracked him down and asked if
Speaker 2: he would be prepared to sell it to me. So
Speaker 2: it wasn't on the table until he went, oh, actually, funny,
Speaker 2: I've been thinking about that. So he probably in the
Speaker 2: back of his mind was thinking, well, I'm saving myself
Speaker 2: a few percent. Yeah, therefore that works for me and bingo.
Speaker 2: But the bit of.
Speaker 3: Paper that was quite nice in old school.
Speaker 2: But that seems to me to be not. I mean,
Speaker 2: that's just a very simple way of of doing a contract.
Speaker 2: I mean I do have one other story. It's not mine,
Speaker 2: but an old flatmate of mine in university days. He
Speaker 2: wanted to buy the flat we were in, and he
Speaker 2: asked the landlord, you know, if he would be interested
Speaker 2: to sell. He wrote down a number and the landlord,
Speaker 2: I'll sell it to you for that, And he said,
Speaker 2: We'll tell you what. Let's just and he drew it
Speaker 2: on a bit of a four, saying I agree to
Speaker 2: sell you this property for this pace, and they signed it.
Speaker 2: And then later on the landlord tried to get out
Speaker 2: of it, and he's like, I've got a written contract
Speaker 2: and that was done as well. But you know, some
Speaker 2: good stories. I've got lots of stories, some of them
Speaker 2: are true.
Speaker 3: I'm really looking forward to hearing some of the stories
Speaker 3: fro about it from the listeners, because I'm sure that
Speaker 3: people have got good stories about deals that they oh,
Speaker 3: they've got a good deal on, or lessons they learned
Speaker 3: from negotiations that didn't go well. Because you know, it
Speaker 3: works both ways. You'll always learn from the mistakes that
Speaker 3: you make.
Speaker 2: And if you are a good negotiator, tell us what
Speaker 2: is the secret of a good negotiation from your point
Speaker 2: of view? And as you say Debbie's first rule, don't
Speaker 2: get emotional about the property. Added to that, if you
Speaker 2: are emotional, do not tell the real estate agent about
Speaker 2: how much you love it. Sold. Twenty two past four,
Speaker 2: eight hundred and eighty ten eighty is the number text
Speaker 2: nine two nine two. We'll be back in just a moment.
Speaker 2: Twenty two past four. I think I gave the time,
Speaker 2: didn't I back in the mine and welcome back to
Speaker 2: the Weekend Collective. But this is the Wonery Radio Show.
Speaker 2: My guest is Debbie Roberts. We're talking about the art
Speaker 2: of negotiation. By the way, I've I've been picking Debbie's
Speaker 2: brain a bit more about when she brought her her place,
Speaker 2: and if we've got time, she's gonna have to fill
Speaker 2: You're gonna have to fill us more on that story
Speaker 2: because it's as quite actually amusing about how deals get done.
Speaker 2: And there's more to the story that you heard from Debbie,
Speaker 2: but we want to hear yours as well. The art
Speaker 2: of a good negotiation. Diane, Hello, Hi, how are you
Speaker 2: going good? Thanks?
Speaker 5: Yeah, Well, my story is a couple of years ago.
Speaker 5: My husband's health wasn't fantastic. We had to leave a
Speaker 5: three devil home. Otherwise it was like death or move,
Speaker 5: no brainer. And I've found an apartment really want to
Speaker 5: move into down Bremer's Corner. Logan apartments are great. And
Speaker 5: then we engage a really young red estate agent and
Speaker 5: it came down to trust and commitment. He just told
Speaker 5: us on the level where the Michael was at. We
Speaker 5: got our house, you know, like a builder's report, and
Speaker 5: I committed to everything on the list that the builders,
Speaker 5: you know, the report said had to be fixed, which
Speaker 5: we did, which took all our background money. And he
Speaker 5: held his commitment too, and he got us within about
Speaker 5: one thousand dollars of my husband's high amount he wanted,
Speaker 5: you know, And we didn't go to auction because we
Speaker 5: had already had already committed to buy the apartment because
Speaker 5: that was it that we're moving to. Totally focused. And
Speaker 5: the guy, his name's Adam from Harcourt. God, he was
Speaker 5: just incredible that no trustworthy, just so trustworthy, you know,
Speaker 5: and you need to feel that trust from your real
Speaker 5: estate agent.
Speaker 3: Absolutely, it's you know, it's oh it is.
Speaker 5: And also it was it was about our life going
Speaker 5: forward as the sixties, plus couple my husbands in the seventies.
Speaker 5: And he was shocked that I'd give up our family
Speaker 5: home and the garden that I tended and growing treason
Speaker 5: for the last twenty five years.
Speaker 2: Oh yeah, him, lots of brain me. Yeah, there's lots
Speaker 2: of emotion in that sort of thing, in those decisions,
Speaker 2: isn't there How much did how much did you want
Speaker 2: the sellers to know? Because it's there's two sides to
Speaker 2: letting them to if you needed to sell to buy
Speaker 2: something else, that is, there's two sides to that. One.
Speaker 2: It's a hook for a buyer that they think they're
Speaker 2: going to be able to do a deal, but it's
Speaker 2: it's also giving something away, isn't it.
Speaker 5: I mean, did you let cards do you?
Speaker 6: Well?
Speaker 2: Well, that's why I was wondering if the real estate
Speaker 2: is it's because sometimes a real estate ad will say
Speaker 2: sellers have bought already, and so there's pressure to do
Speaker 2: a deal because okay, it's giving away a position, but
Speaker 2: it's also enticing people to go all and it's not always.
Speaker 3: A bad thing either. You know, if the vendor is
Speaker 3: genuinely motivated to sell because they've got a deadline looming,
Speaker 3: then I think sometimes the real estate agent is working
Speaker 3: in their best interests by letting people know, hey, this
Speaker 3: is a property that needs to get sold. Come play bored.
Speaker 5: Yeah, Well the indication was we did a deadline sales.
Speaker 2: Excellent, Yeah, you know, to make it.
Speaker 5: And he kept us totally up up to speed with
Speaker 5: what was happening. And he had two maybe three very
Speaker 5: viable people and one family in particular wants the property
Speaker 5: and so we brought it forward or the date forward.
Speaker 5: And also the people we were buying off at Logan Apartments,
Speaker 5: they allowed us to do a lower deposit because they
Speaker 5: knew we were committed, so they actually helped us as well.
Speaker 5: So it's just people having good old fashioned trust and
Speaker 5: belief and you know, you're you're good as your words
Speaker 5: and your signature.
Speaker 2: So long as your trust as well placed. That's the
Speaker 2: main thing. Hey, thanks Diane good On here. Thanks thanks
Speaker 2: for that. If I was going to put on my
Speaker 2: cynical hat though, is that I mean, it's how much
Speaker 2: how much do you tell your real estate agent, because
Speaker 2: you don't if you're a seller. I mean they get
Speaker 2: their commission when they sell if they can convince you
Speaker 2: to accept a lower price. I mean it's not always.
Speaker 3: Realisted agents have to work in the best interest of
Speaker 3: the vendor, the person that's selling the house. But yeah,
Speaker 3: you're right, it does come down to getting a sale
Speaker 3: across the line. But I think a good realistic agent
Speaker 3: is worth their weight in gold, so, you know, and
Speaker 3: a realistic agent that you've got that trust with and
Speaker 3: that you really do feel like they've got your best
Speaker 3: interests at heart, that's a relationship worth nurturing.
Speaker 2: Excellent. Right, let's take some more calls Ross Hello, his.
Speaker 6: You've got to watch some of these bloody land agents
Speaker 6: when it comes to auctions, because I've had an occasion
Speaker 6: where it said prior offers welcome or something like that,
Speaker 6: and I thought, yeah, I could do with this place.
Speaker 6: So I've called the agent. They've come and talked to
Speaker 6: me and said, I said about this prior office that
Speaker 6: it's good in loves my house then and he said no,
Speaker 6: he said, what we do is use your offer as
Speaker 6: the starting base of the auction.
Speaker 3: If your if your auction, yeah, if your offer prior
Speaker 3: to an auction gets accepted, that is the standard rule
Speaker 3: is that you know, it does go to auction and
Speaker 3: your offer that the that the vendor accepted becomes the
Speaker 3: the minimum. Like that's the starting bid, but it's also
Speaker 3: the reserve.
Speaker 6: So that means a lot of people, a lot of
Speaker 6: people don't know that. They don't get told that no exactly,
Speaker 6: And I think it's just honest to be honest, Well, it's.
Speaker 3: It's quite an open system, so you know, it's it's
Speaker 3: an action in my opinion, and I'm not a realistic agent,
Speaker 3: but an auction is the best way to get market value,
Speaker 3: you know, because it's an open market, it's an open process,
Speaker 3: and if your offer is accepted prior to the auction,
Speaker 3: there might not be any other bid is. So that's
Speaker 3: why when you're making a pre auction off you've got
Speaker 3: to make sure you're happy with that it and take
Speaker 3: your chances.
Speaker 2: On the day.
Speaker 6: The place we did buy needed it, we better work
Speaker 6: down to it nice home and they had a figure
Speaker 6: on it. Off is over, so off. I offer them
Speaker 6: less than that and said I'll take care of all
Speaker 6: the bits of work when you done excellent and they said, yep,
Speaker 6: that'll do us. It was a deceased to state.
Speaker 3: And so did you get it at the auction as well?
Speaker 6: It was your No, no, no it wasn't. It wasn't
Speaker 6: an auction.
Speaker 2: Oh I thought you thead of the action, No, that
Speaker 2: this wasn't.
Speaker 6: Going to be auction, the one I didn't go with
Speaker 6: because of the agent's rules with you. I didn't go.
Speaker 6: I didn't bloody go there. I thought, no, I can't
Speaker 6: take it.
Speaker 2: I mean that it's it's heightened stuff, isn't it. Because
Speaker 2: it's easy for us to city are chatting about property deals.
Speaker 2: But when you're in the hot seat of wanting to
Speaker 2: buy or sell your dream home or whatever, it's really
Speaker 2: high stakes. So it's so difficult to put to to
Speaker 2: rehearse that stuff in a way, isn't it, Debbie.
Speaker 3: It is because emotions get in the way, you know.
Speaker 3: And I think it's important to remember that not everyone
Speaker 3: has to sell. Some people are motivated to sell for
Speaker 3: a bunch of different reasons, but they don't necessarily have
Speaker 3: to sell. And having said that, some people who've got
Speaker 3: their houses on the market, price isn't their main priority.
Speaker 3: So for some people who've maybe owned their house for
Speaker 3: thirty years, you know, they might be mortgage free, for example,
Speaker 3: they might have other reasons for wanting to sell it,
Speaker 3: so they're not necessarily after getting the top dollar. They
Speaker 3: just want to get the deal done so they can
Speaker 3: move on.
Speaker 2: Actually, the thing is, in my landlord's case, you sold
Speaker 2: to me, I think one of the things because it
Speaker 2: wasn't like he had an epiphany or anything. But he
Speaker 2: liked the idea that we went buying it as investors,
Speaker 2: he said, And he even said to me, he said, look,
Speaker 2: you know, you guys want to have children and raise
Speaker 2: your kids. Here look, give me this and we'll call
Speaker 2: it a deal. And I think I call it a
Speaker 2: win women in a way. He was happy and we
Speaker 2: were happy. But I mean, I wonder if people are
Speaker 2: sometimes sellers motivated by thinking, oh, look, this is such
Speaker 2: a lovely family, the house that we've poured so much
Speaker 2: love into, you know, we've cultivated the gardens and things.
Speaker 2: Now it's going to be inhabited by this lovely family.
Speaker 2: We'd rather sell it to them than the person who's
Speaker 2: probably gonna, I don't know, just flick it on in
Speaker 2: six months. Is there ever that do you think there
Speaker 2: was always money, money, money, money, money.
Speaker 3: I think no, I think I think money is not
Speaker 3: the most important factor for a lot of people that
Speaker 3: are selling.
Speaker 4: You know.
Speaker 3: So yeah, for some people, absolutely, but it's not for everyone.
Speaker 3: I mean, like, you know, I can think of so
Speaker 3: many different examples of where people have accepted a lower
Speaker 3: price because you know, the settlement didn't suit.
Speaker 2: Them, or well there's the tender of it, the tenders everything.
Speaker 3: Yeah, there's so much that you can negotiate on when
Speaker 3: it comes to property. It's more than just price and
Speaker 3: settlement date.
Speaker 2: Yeah. Right, let's take another call where we're up to
Speaker 2: fill gooday.
Speaker 6: Good, how are you good?
Speaker 2: Things?
Speaker 4: Yeah, I think that might have been the case. When
Speaker 4: I bought my house, the people that sold it to
Speaker 4: me kind of sold it to me because I was
Speaker 4: first home buyer and it wasn't so much about the
Speaker 4: money for them. They just kind of thought a bit
Speaker 4: of sympathy on me. Maybe, But I haven't got much
Speaker 4: advice on negotiations. When when I first saw the place,
Speaker 4: I got the field that, yeah, I like this, this
Speaker 4: is me And the land agent was brilliant, my land
Speaker 4: agent that showed me the place. But I watch a
Speaker 4: lot of programs like location and Location and stuff like that,
Speaker 4: and I don't know, but seems to one of the
Speaker 4: things I would say is that because I only when
Speaker 4: I bought my house, I knew it was a good
Speaker 4: deal and I was getting it cheap in a good
Speaker 4: street and a good neighborhood because it's an older house
Speaker 4: book in the fifties. So they gave me the price
Speaker 4: and I put in, just to be cheeky, about a
Speaker 4: two thousand dollars year no counter off, and they said no.
Speaker 4: And then I said, right, I'm going to lose this
Speaker 4: by mark around. So I gave him the asking price.
Speaker 4: But on that location, location and programs like that, they
Speaker 4: seem to say things like always go and don't go
Speaker 4: in at your best price, which probably makes common sense,
Speaker 4: or you know what you can ultimately afford, but going
Speaker 4: a bit lower in a bit well maybe a bit cheeky,
Speaker 4: because you can always go up and you can't go down.
Speaker 2: Indeed, you can't change your mind once you put your yeah.
Speaker 3: And if you don't ask, if you don't ask, you
Speaker 3: don't get. You know, that's something that we say to
Speaker 3: our clients all the time, is what's nothing wrong with
Speaker 3: putting in a lower offer. Worst that's going to happen
Speaker 3: is that they'll say.
Speaker 2: No, hey, just before we go to the break, we've
Speaker 2: got some more callers there. But I did want you
Speaker 2: to fill in the gaps a little bit about your
Speaker 2: nego shash. It's quite funny. You had to negotiate with
Speaker 2: your husband in a way about what about trusting him
Speaker 2: to do the deal, and you had to agree your
Speaker 2: number first before he went to the off.
Speaker 3: No, I didn't agree on the number, So Paul and
Speaker 3: I both wrote down and figure that we were happy
Speaker 3: with what would be our top dollar that we'd be
Speaker 3: prepared to pay and my top dollar was considerably higher
Speaker 3: than yours. And he looked at me and than his.
Speaker 3: And he looked at me and he said, so you
Speaker 3: need to understand that if we can't, if you if
Speaker 3: I'm going to negotiate this, you need to trust me
Speaker 3: to do it. And I said, we of course I do.
Speaker 3: And he said, well, if we can't get it for
Speaker 3: the price like below my top dollar, you need to
Speaker 3: be prepared to walk away. And I said fine, and
Speaker 3: we did. We did walk away from it because the
Speaker 3: vendor didn't accept this Chris to start with, but we
Speaker 3: ended up doing a deal about three months later. The
Speaker 3: same vendor.
Speaker 2: Fine, I e. Not fine, but you better do this deal, buddy.
Speaker 2: So luckily for him it ended happily.
Speaker 3: Yeah, well eventually, yeah, because the vendors weren't able to
Speaker 3: sell it to anyone else.
Speaker 2: And so they turned you down.
Speaker 3: They tuned us down.
Speaker 2: Yeah, yeah, yeah yeah.
Speaker 3: And then a few a few months later, the realistic
Speaker 3: agent called us up and said, they want to know
Speaker 3: you're still in the market.
Speaker 2: What was your emotional journey at that point.
Speaker 3: I'm so excited.
Speaker 2: No, no, no, not that, not when you got it,
Speaker 2: but oh when we missed it failed so were you scuttered? Okay?
Speaker 2: And how was how were you with? You know, with
Speaker 2: your negotiating husband was the doctor?
Speaker 3: Luckily for her, I loved her more than the house.
Speaker 3: No contestant.
Speaker 2: It's a love story in the end, isn't it. Twenty Look,
Speaker 2: we want your stories on negotiating twenty two to five
Speaker 2: Newstalk said, b they didn't know jes. Let's welcome back
Speaker 2: to the Weekend Collective with this one Refradia show. My
Speaker 2: guest is Debbie Roberts probably apprentice she's with. You might
Speaker 2: have recognized her voice from some of the promotions she
Speaker 2: does on the station Property Apprentice, Dot Curtt and Zed.
Speaker 2: We're talking about the art of negotiation and your stories
Speaker 2: as well. What's the secret to getting the deal done?
Speaker 2: And look, I guess, as they say, if it's a
Speaker 2: win win in the end, you're happy, they're happy. Hopefully
Speaker 2: you're both right. And let's take your calls in your
Speaker 2: negotiation stories as well. Helga, Hello, good thanks, just do
Speaker 2: my phone up.
Speaker 7: Well, my situations a bit but different to other people's.
Speaker 7: I inherited an old house and land and pons be
Speaker 7: with pontsab Land is very valuable. That was in twenty
Speaker 7: and sixteen and it sold for a million, but the
Speaker 7: house was built in eighteen sixty five. That was an auction,
Speaker 7: but I wouldn't recommend auctions. We then built a brand
Speaker 7: new house in Walk Class A Golden Homes that's quite
Speaker 7: through the sun was the title again, some of the tile,
Speaker 7: everything was beautiful. And then my son got married, so
Speaker 7: we decided to say all the house again. And what
Speaker 7: I found out about auctions, if no one turns up
Speaker 7: to the auction, you've paid the agency, which I didn't
Speaker 7: think was right. So we sold by negotiation and that
Speaker 7: house with Ruth over a billion, but we went too
Speaker 7: high and the land agent suggested a bit lower and
Speaker 7: we sold it. But I wouldn't recommend auctions because you
Speaker 7: might be paying them for a fee and no one
Speaker 7: turns up.
Speaker 3: The market, doesn't it you pay the auctioneer's fee.
Speaker 7: Yeah, which it's bad enough when you're paying out all
Speaker 7: the loyal fees and everything, you know, and not everyone
Speaker 7: has a million dollar house to sell. I'm only saying
Speaker 7: that because to help other people who don't have the money,
Speaker 7: just be careful and lying the agents. Am I allowed
Speaker 7: to mention agent stable not what in.
Speaker 2: A positive way, because we don't want anyone. If you've
Speaker 2: got a shout out.
Speaker 7: Yeah that's all right, Yeah, hard thoughts and walk and
Speaker 7: hard courts and Mounttower, but excellence. I'm going to give
Speaker 7: you some other advice. And people bet them betted for
Speaker 7: a good dumb agent.
Speaker 2: Well you absolutely ask around if as well. Yeah, good
Speaker 2: good stuff. I'll go, Well, thanks for your call. Actually
Speaker 2: there was a there's a real estate agent and my
Speaker 2: neck of the words. I've mentioned her before actually, but
Speaker 2: she has a she put a book at the best marketing.
Speaker 2: She has a booklet she puts out which has the
Speaker 2: contact numbers of a range of trades people for any
Speaker 2: job you could ever possibly want on your property. Nice
Speaker 2: and in fact, I even i'd lost it and I
Speaker 2: couldn't remember where it was, and somebody told me and
Speaker 2: I went around and said can I have a few,
Speaker 2: and she and I met her and she was like absolutely,
Speaker 2: and I think she'd ranged to drop them off. But
Speaker 2: I was thinking that was such a good marketing device
Speaker 2: because every time you go I need a plumber, try
Speaker 2: this one. You go to the same booklet and there's
Speaker 2: the real estate agent there.
Speaker 3: Excellent.
Speaker 2: Now we need to just before I mean time's flying.
Speaker 2: We've barely talked about the market in that core Logic
Speaker 2: study but study not sorry, the core Logic data analysis
Speaker 2: where it says that in real terms, house prices are
Speaker 2: going to be twenty percent lower in the thirties than
Speaker 2: in twenty twenty one. And these are all the headlines
Speaker 2: that don't help it to change from being a buyer's market.
Speaker 2: We've had the CVS where nine percent drop on average,
Speaker 2: and headlines that property prices aren't going to be too
Speaker 2: flash in terms of where inflation's going, where property prices
Speaker 2: are going exactly? What's the context that we Is there
Speaker 2: any any context we're missing?
Speaker 3: Well, my thoughts on this is that anytime someone's making
Speaker 3: predictions about what might happen is literally crystal ball gazing.
Speaker 3: No one knows, no one knows what's going to happen.
Speaker 3: What we can do is make predictions based on historic events,
Speaker 3: you know. So, I mean I would be and at
Speaker 3: the end of the day, no one is expecting house
Speaker 3: prices to drop by twenty percent. But I tell you what,
Speaker 3: the number of people that are commented on social media
Speaker 3: that just read the headline and didn't read the article,
Speaker 3: it's astounding. So the more that people think house prices
Speaker 3: are going to drop by twenty percent.
Speaker 2: Not in real numbers, No, not in real numbers, but
Speaker 2: that's what.
Speaker 3: The headline looks like, and that's what people see. That's
Speaker 3: what grabs their attention. So I think the more that
Speaker 3: people are out there thinking that, and the more that
Speaker 3: people are thinking, gosh, our house has dropped in value
Speaker 3: because the cvs are a lot lower than they were
Speaker 3: last time, all of that puts uncertainty into the market,
Speaker 3: and that makes it more of a buyer's market, potentially
Speaker 3: for a little bit longer. I was talking to you
Speaker 3: in the break, I think the current market conditions for
Speaker 3: anyone who's looking at purchasing, these are the best market
Speaker 3: conditions that we've seen for over a decade. Last time
Speaker 3: we were in a really true buyers market was just
Speaker 3: after the global financial crisis.
Speaker 2: What year was that, in reminding you, two thousand and.
Speaker 3: Seven, two thousand and eight, So it's been a long time.
Speaker 3: And when we look back through previous property cycles, we
Speaker 3: tend to get the peak of the boom about every
Speaker 3: ten years. You know, the last boom was a lot
Speaker 3: longer than that. So if we go back to averages,
Speaker 3: then it could be another ten years before we see
Speaker 3: market conditions like this again. And I reckon twelve months
Speaker 3: from now, two years from now, people will be going,
Speaker 3: oh god, I wish we'd bought in twenty twenty five.
Speaker 3: And this is me who's not selling properties.
Speaker 2: Yeah. No, No, you're in the business of helping people
Speaker 2: buy them, don't you.
Speaker 3: Yeah, and it's a great time to be buying.
Speaker 2: I about this text here with respect. Your advice is
Speaker 2: putting a lot of pressure on first time buyers. If
Speaker 2: they it, If they find a house they can afford
Speaker 2: and they like, and they hold it for ten years,
Speaker 2: it won't matter if they could have paid less for it.
Speaker 2: I don't quite agree with that.
Speaker 3: No, I don't agree with that either. And the reason
Speaker 3: I don't agree with that is because capital growth is
Speaker 3: not important to first time buyers, but getting the lowest
Speaker 3: mortgage possible is really important. And if you can make
Speaker 3: your money when you buy, you've created your own capital growth,
Speaker 3: and even better, if you can buy a property that's
Speaker 3: got value add potential, you're doing even better when there's
Speaker 3: no capital growth.
Speaker 2: So yeah, that's not actually right. Yeah, because and of course,
Speaker 2: if you've got another fifty grand on your mortgage, and
Speaker 2: it takes you longer to pay that mortgage. If you've
Speaker 2: got more interesting, you've got more interest, you're paying on
Speaker 2: that other amount that you could have saved. So actually, yes,
Speaker 2: it does matter. I would say, maybe she's talking about
Speaker 2: if you buy house and then you fleck it on
Speaker 2: and buy another sort of thing, And I don't know
Speaker 2: whether there's a different context where it might not be
Speaker 2: so tragic. Is there I'm not sure. Well, in other words,
Speaker 2: if you buy a house and you live in and
Speaker 2: that set, whereas if you buy a house and you
Speaker 2: eventually trade up a few years later in another one,
Speaker 2: is there a context where maybe what you paid first
Speaker 2: time round, isn't it so relevant?
Speaker 3: I think you know, property is a long term strategy
Speaker 3: unless you're looking at flipping properties, which is a totally
Speaker 3: different ballgame. Like that's a business. You're in the business
Speaker 3: of buying and selling houses stuff. You're flipping properties, so
Speaker 3: you've got to take gest and tax on profit into
Speaker 3: account for that. Is well, But generally speaking, homeowners move
Speaker 3: on average about once every seven years. Property investors sell
Speaker 3: their rental properties on average about once every ten years.
Speaker 2: Right, you've got some tip. You had some tips because
Speaker 2: We've spent so much time bountering about great, But are
Speaker 2: there some other I mean, you said don't get emotional,
Speaker 2: and if you are emotional, don't tell the real estate
Speaker 2: your agent your emotional if you're buying. What's another one?
Speaker 3: Absolutely? I think be patient, look for value, add potential,
Speaker 3: don't be scared of making a lower offer, because negotiations
Speaker 3: the key.
Speaker 2: I think that that's a big one, because if you
Speaker 2: are a people pleaser and you've got a real estate agent,
Speaker 2: it's like, oh, you know, I don't think if you
Speaker 2: don't try and please the real estate agent, just come
Speaker 2: up with a number and saying here's my number, and
Speaker 2: just grit your teeth and look, practice the art of
Speaker 2: the dead pandemic.
Speaker 3: Yes, and look, the more you know about what's happening
Speaker 3: in that area, the stronger you're negotiation stance will be.
Speaker 3: You know, the more you know about what properties have
Speaker 3: been selling for, that's that puts you in a stronger position.
Speaker 3: So yeah, just I think buy for equity and or
Speaker 3: cash flow. If you're looking for an investment property at
Speaker 3: the moment, you're not buying for capital growth because there's
Speaker 3: so all okay, right.
Speaker 2: We'll take a moment it's ten minutes to five news talk,
Speaker 2: said b.
Speaker 1: The one roof property of the week on the Weekend Collective.
Speaker 2: Yes, the one roof property of the week is it's
Speaker 2: a beauty actually, but not in the way you might think.
Speaker 2: It's almost like your traditional beach batch. But I'll give
Speaker 2: you the address where you can find it on the
Speaker 2: one roof for website one roof dot curtain in set
Speaker 2: is one Rosa Lee R s A L I E.
Speaker 2: Bay Road, Great Barrier Island and the Hurricane Golf. Five bedrooms,
Speaker 2: two bathrooms, one one car garage four off street and
Speaker 2: it was it's it's one point three million dollars, which
Speaker 2: is actually quite quite a whack. But it's a classic
Speaker 2: family home breming with charm and comfort, featuring a generous
Speaker 2: living areas ideal for family gatherings, room to relaxing and
Speaker 2: detain fantastic views. Although when I look at it, it's
Speaker 2: apparently built quite recently, but it certainly has a certain
Speaker 2: rustic charm to it, like it's an old like it's
Speaker 2: an old sort of beach batch. In fact, what do
Speaker 2: you make of it?
Speaker 6: Do you?
Speaker 2: The photos I'm seeing of it looked quite Yeah.
Speaker 3: It's quite cute. That's the sort of place that you
Speaker 3: could potentially rent out by short term rental as well,
Speaker 3: if you have it as a holiday home and rent
Speaker 3: it out for short term when you weren't using it.
Speaker 2: Absolutely amazing views, isn't it. So you go and check
Speaker 2: that out. It's I think some of the information I've
Speaker 2: got on this might not be quite right because it
Speaker 2: says talks about how when it was recently built. In fact,
Speaker 2: we might have might have a slightly wrong description for
Speaker 2: that one there, But go and check out the photos.
Speaker 2: Of course it is quite a spectacular location and a
Speaker 2: real sort of traditional looking beach batch. But yeah, five bedrooms,
Speaker 2: two bathrooms, Yeah, there we go. So yours for one
Speaker 2: point three roughly? Would you say sold? You walk in
Speaker 2: and you go sold?
Speaker 3: Or maybe if you had an extra we've got a
Speaker 3: holiday home we love, so yeah, we're good.
Speaker 2: What sort of style of what sort of style of
Speaker 2: architecture appeals to you that you know? For instance, we've
Speaker 2: heard your story about walking and going sold?
Speaker 7: What was it?
Speaker 2: Was it? Because it was modern all sort of.
Speaker 3: Well, it had some value add potential. The biggest value
Speaker 3: add potential was the big backyard. Because I looked at
Speaker 3: that and I saw an outdoor kitchen in a swimming pool,
Speaker 3: I thought done. Yeah, I like, I like modern contemporary.
Speaker 2: So yeah, I made a mistake with the description that
Speaker 2: I should correct there by the way that there was
Speaker 2: a main dwelling which is a classic family home and
Speaker 2: that's that says Bremming with charming. Come. But there's also
Speaker 2: a second dwelling which is the designer beach pad crafted
Speaker 2: for modern laid back living. So that's why it's a
Speaker 2: bit more expensive than I thought for the initial property
Speaker 2: that I was looking at. But anyway, so people want
Speaker 2: to catch up with the work you're doing, they can
Speaker 2: go to Property Apprentice dot co dot nz and you've
Speaker 2: got regular not workshops, but yeah.
Speaker 3: We do free online events every week, so yeah, people
Speaker 3: can register for one of those on our website and
Speaker 3: come ask me as many questions as you want to
Speaker 3: excellent two hours to talk about stuff.
Speaker 2: And yeah, and learn a few lessons about negotiation and
Speaker 2: do not say sold when you walk on the door.
Speaker 2: I think, just what we've learned today. Hey, Debbi, great
Speaker 2: to catch up with you.
Speaker 3: Thanks for having so much.
Speaker 2: We'll be back with the parents quite us next. Nathan
Speaker 2: Wallace talking about dealing with teenagers anxiety and outbursts. When
Speaker 2: do you let them write it out? Or when do
Speaker 2: you take yourself off for a bit of quiet time?
Speaker 2: Will be taking your cause? Oh wait? One hundred eighty
Speaker 2: ten eighty in text on nine two nine tools.
Speaker 7: Surely all I really need is a little
Speaker 1: For more from the Weekend Collective, listen live to news
Speaker 1: Talks it Be weekends from three pm, or follow the
Speaker 1: podcast on iHeartRadio.