Buying a House in New Zealand

When buying or selling a property the most difficult stage of the process is the negotiation of the sale price. The buyer wants to pay as little as possible and the seller wants the maximum price possible for their home. So a middle ground must be found between the two parities where all concerned can walk away and feel as if they have won.

Many people feel that the negotiation of a price is about luck, this is not the case. There are hundreds of books, videos and other media available to improve your negotiating skills and if you feel the need I am sure you could shave off or add on thousands of dollars by becoming an expert in the field. Do you have the time? If not then what you are looking to do is use the follow skills to reach agreement.

1. Use The Agent - New Zealand Real Estate agents are supposed to be training or have some negotiation skills. Many agents do possess these skills and many employ them effectively. However others do not possess these core skills and may not negotiate the best possible deal for both parties. Always remember the agent works for the vendor of the property. The agent also works for him/herself and is primarily concerned about getting their commission, which raises a very large conflict of interest. Use them, but be aware.
2. Fair Price not Scare Price - As you should already know, setting the selling price of a property too high will not attract too many potential buyers. Offering too low a price will make a vendor consider you a time waster. So the best place to start for both buyers and sellers is to look to the local market and evaluate the prices of similar homes and either make an offer or set a price based on your research.
3. Know Your Enemy – If negotiating is war then what better way to win than know thy enemy. Find out why they are selling or buying, have they already sold another property, making an offer on a property, have a bigger family etc. The more information you have the more informed your offer will be. For example if the vendor has already committed to the purchase of another property they may be more willing to lower the price to finalise the sale quickly, if the vendors recently went through divorce and re selling assets could mean both parties just want the house sold thus may accept any offer. Be careful here, if you appear too smug with your information or misuse it you could end up on the losing end of the deal.
4. Emotional Checks - In the perfect negotiation everyone, buyer and seller, get exactly what they want. This is not the real world. In (nearly) all negotiations both sides must compromise on the details. Each party decides on their highest priorities and will give and take of on the rest. Do not let pride or emotional attachment get in the way here. Pride in the win will probably leave you with nothing and if you are too emotional attached to the deal you will end out paying more or accepting less.
5. Stuck in the Middle with You - If both parties just cannot accept the others positions, if the negotiation is stuck on price, date or some conditions and both parties want a conclusion meet them in the middle. Offer to go halfway if they go halfway. Don’t feel this is a cop-out or a loss, this is a well used strategy in any negotiation.
6. Help!, I need somebody - Ask for help, if you cannot negotiate or do not want to, ask someone you trust to do it for you. If you want to take part in the negotiation ask for help from someone whom has done it before. Family, friends or even you solicitor can all help you in this regard.
7. Just the Fax Mam - If you worry about negotiation is the face to face, then have no fear, in New Zealand; you never have to meet the seller or buyer if you choose not to. But yourself and fax machine and instruct the agent you wish to deal only through the fax machine. This means he must present all the offers to the vendor and then fax through the counter offers to you. It is standard practice and do not feel afraid to request it. Some people find the emotional stress of facing the person you are negotiating with too much, if that is the case remove the obstacle.

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