singapore property

Questions Which Reduce the Price

If you want to reduce a price, you can start by asking an incompetent agent just four questions.

1. "Why are they asking this price?"

You don't have to say anything else. This question immediately puts the agent in the position of having to defend the price. And, if the agent is concerned about the price - as most of them are - you will often be given a reduction. The response is likely to be, " Well, it's a bit high, I know. But they will listen to offers."

You can use this question for any product. It doesn't have to be real estate. No matter what you want to buy, you can ask the reason for the price. It works in dress shops, it works in hotels, it works everywhere. All you say is, " Why are you asking this price?". And, if there is any chance of a reduction, you will get it.

Incompetent agents assume that a question about the price means the price is too high. As most agents want to lower the price to make a sale, they will admit that the price is high. They will try to get it cheaper for you. They won't realize that you may buy at the price being asked. Buyers often say the reason they didn't pay more for a home is that "the agent didn't ask for more."

So, when being asked with this question, the best agents answer this question by saying: "They are asking this price because.....[points out the positive features - location, condition and so on]." End of answer.

2. "Why are they selling?"

This is where incompetent agents reveal the sellers' confidential reason for selling especially when the reason is not in the seller favor. The answer will be something like, " Oh, they are getting divorced," or "They are in a bit of financial difficulty," or "They have bought something else and they need to sell this to pay for the other place." It most defies belief that a professional person could reveal such details. When you know that the sellers are forced to sell, who can blame you for offering a lower price?

The best agents answer this question by saying: "They are selling for personal reasons but I know they are serious." End of answer. This eliminates the dilemma the agent could be facing in upholding his fiduciary duty while at the same time being truthful without lying. Of course, if the actual situation is good for instance, like the owner is upgrading and need a bigger place, relocating to be near parents or school or migrating, then it's fine to say.

3. "How long has it been For Sale?"

The longer a home has been for sale, the more likely it is to sell for a lower price. The perception is that the owners will be getting desperate and will accept a lower offer. Often this is true. The incompetent agent will answer this question by saying something like, "Oh, it's been on the market for a while but they will listen to offers now." The seller is again vulnerable to a low offer.

The best agents will answer this question by saying, "It has been for sale for six weeks (or however long) but we don't expect it to be for sale much longer." The seller is protected.

4. "What will they take?"

This is where the incompetent agents can really cost the sellers thousands or even hundred of thousands. Their answers to this question can be incredibly negligent. Assume the home is priced at S$2,500,000/- One of the common responses goes something like this: "Oh, they did have an offer of S$2,350,000/- which they accepted, but the buyer found something else, so I know you can get it for S$2,350,000/-". If the home is what you want and you can afford S$2,500,000/- , the agent has just handed you at least S$150,000/- of the sellers' money. Incompetent agents always reveal sellers' lowest price in response to the "What will they take?" question.

The best agents will answer this question by saying: "Well, I know they will take the asking price. Did you want to buy it?"

These four questions show how incompetent agents under-sell homes.

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