Here's a breakdown of a negotiation and successful purchasefor one of my clients. 

My client found the property themselves, off-market. In this service,clients find and shortlist properties themselves, then I take over and dothe rest. 

This scenario was high-stakes because it was the only propertywithin their budget and brief available at that time. When a clientis limited in options due to budget, the pressure around thatparticular property increases, because there's so much riding on it. Ifbuyers are not careful, it can also put them on the back foot innegotiation when they have no alternatives as good as that property.

So I had my work cut out for me. My role was to respect my client'sattachment to the property and their limited options, while protecting theirinterests as their independent advocate by securing the lowest possibleprice. 

The first thing I did was assess the details of the property before approachingthe agent about the negotiation. I wanted to know: 

- Are there any quirks about the property in the Title, zoning, or councilplans that we need to investigate further? 
- What are the comparable sales in the suburb? 
- What other properties are currently on the market in that suburb? 
- What is the sale history of the property?

There were some quirks to the property, as there almost always are,which I investigated further with the help of specialists whereneeded. The benefit of this is pinpointing the property's drawbacks to help meframe the negotiation. 

Next, I qualify the process with the agent, and through that, find outmore about price. I let them know that we are keen and workingthrough due diligence, and I ask what process they intend to run. Iwant to know: 
- When is the owner looking for offers? 
- How long have they been testing it off-market, and what's their plan ifthey don't sell if off-market?
- Where is the interest sitting right now for other buyers? Are there liveoffers? Previous offers?

I gathered the information I needed and was clear with the agent about theprocess my buyer needed to work through e.g. contract reviewed beforemaking an offer in this instance. I also floated the cooling off periodthey'd likely need and the settlement terms, so we could rule theproperty out early on if there are any showstoppers. 

In the meantime, I'm was discussing with my client theinformation the agent was sharing and what I recommend we do.

Once I had the key pieces of information from the agent, I recommend tothe client that I start talking price with them while we clarifiedthe due diligence items in the background. This was a balancing actbecause I wanted to know the price at which the buying opportunitysat, but I didn't want to commit to an offer before the duediligence was ironed out. 

I kick off the price conversations, and the timing is right. Itworked because there was some back and forth that needed tohappen. All the while, I kept the agent informed about the duediligence occurring in the background. This does two things: itbuilt trust, because I was being transparent; and itsignalled that the property wasn't perfect and that the buyerhad some complexity to work through, which he could relay to hisvendor to help manage price expectations. 

We continued this process over a couple of days, until both sides have donetheir part to reach a price and terms that suited. We were comfortablewith the due diligence, and the vendor had adjusted theirprice expectations over that time. 

We purchased the property within a very sensible price range, with agenerous buffer left over to account for minor repairs. The client wasover the moon that we managed to claw that buffer back intotheir budget. They were preparing to part with that money,but it's my job to protect the client from paying more thanthey need to. 

The key takeaway from this purchase was communication with the agent. Iwas transparent with him about our position, the steps we were takingin due diligence, and the timings we were working to. That way, hecould keep his vendor informed and manage their expectations. It'simportant for buyers to communicate with the sales agent. Youdon't have to give away all your cards, you just can't be afraid to beupfront with. 

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FAQ

Are buyer's agents worth the money? 

It depends what you are looking for out of the service. If you looking to get the best property for your budget, then yes. If you are looking to pay only as much as you need to for a property i.e. negotiating the best prices, then yes. If you don't have time to source and inspect properties, and are worried you're missing out on off-market properties, then yes. If you can't name 30+ due diligence items to check in a property, then yes, it's worth the money. If you've been looking for more than 3 months and every property you like sells well above your budget, then no, it's no worth your money, because no matter how good the buyer's agent is, they can't cater to unrealistic expectations.