Negotiating on a property isn’t just about finalising a deal – it’s about securing the best possible outcome for your clients. This training will help you understand that effective negotiation goes beyond discussing price; it’s a strategic process of ensuring you are presenting the right offer with the right price, terms and conditions that suit the seller the most.
In this module below we will cover the power of the first call to agent done right, what information the client can share with gives you strength going into a negotiation, what clauses you can use, the right questions to get to the seller’s motivation in order for you to tailor your offer for the highest chance of success.
Table of Contents
How to prepare a great offer and begin pre-negotiating
Preparation of an offer begins well before you actually submit the offer to an agent. The first call with an agent can be vital to get critical information to make sure that you tailor your offer to what is the most important thing to the seller in each negotiation. The second part is being very familiar with your client’s position and knowing what you have up your sleeve to negotiate with.
Let’s break it down, it all starts with gathering the information you need to gain the upper hand in the coming negotiations.
What information do I need from the agent on the first call?
Knowing what information you need to make a decision on a property, and matching it to the correct client is crucial. Below you will find a breakdown of the key facts and insights you want to gather, as well as some examples of scripts, questions and dialogues to assist you in preparing your offer
Due Diligence basic requirements
Finding out the information about the property to see if this passes our basic DD checks before pursuing further.
Why do I need to know this?
If a property doesn’t pass out checks, there is no point continuing down the process as we don’t want to be a sub-par asset.
Here’s some great questions to ask:
- What’s the address?
- What’s the bed, bath, car and land size for this one?
- Has there been other renovations or improvements to the property?
Seller Motivation
Why is the seller selling?
Why do I need to know this?
Determining a seller’s motivation will indicate to you if there is a chance you are wasting your time or if this person is serious and ready to move forward.
Here’s some great questions to ask:
- What happens when people are considering selling but they’re not 100% ready? ‘’Is your client ready to sell today?’’
- What’s the most important thing to your seller as part of this sale?
- Have your seller’s purchased elsewhere?
- Is the property rented or owner occupied?
Buyer Interest
What is the level of enquiry, offers, people who have or will attend the property?
Why do I need to know this?
This will help you craft your offers and negotiations to ensure you are getting the best possible price for our client.
Here’s some great questions to ask:
- Am I having the first look at this one?
- Is there anything I should be aware to position my client correctly?
- What would you say is the best features of this property?
Terms
All negotiation parts of the transactions besides price, i.e settlement, deposit, clauses.
What are the terms?
- Finance clause
- P & B clause
- Due Diligence clause
- Initial deposit amount
- Balance of deposit amount
- Cooling off period
- Settlement date
- Timeframes - what’s the seller need?
Here’s some great questions to ask:
- Are my terms the right fit for the seller?
- What would give me a better chance, what would the seller prefer, what terms would get the deal done?
- If I offered you X terms would that help us secure this today?
Negotiation Process
What is the process and timeline of how buyers will be submitting offers and the seller accepting a final offer.
Here’s some great questions to ask:
- If I agree to pay this price, is it going to be shopped around to get buyer interest or can you guarantee me a deal here and now?
- How will you run the offer process?
- Will you disclose all the offers?
- Will you make it best and final offers or play ping pong back and forth?
- When will you close the offer process, what is the hard deadline for other offers?
- When will you present offers?
- When will your client counter sign?
Buy Price
What is the price that the seller will accept and sign a contract today.
Here’s some great questions to ask:
- What buys it today?
- What’s the highest offer you’ve rejected?
Hint: Familiarise yourself with the property, recent comparable sales, and the market conditions.
Phone Script:
‘Hi [Agent’s Name], I’m calling regarding [Property Address]. I’ve reviewed similar properties like [Address 1] and [Address 2], and I’m keen to understand where this one sits.’
Final Tips
If you have a property that’s been really recently renovated, constructed or had improvements.
Why is this important?
With renovations/improvements, it is important to confirm they have been approved and/or completed to a high standard. Secondly, you want to have detaied insights into any value of the property that other people/BA’s may not, this allows you to assess the property’s fair value more accurately and make a competitive but accurate offer.
Here’s some great questions to ask:
- How long has the property been vacant for while the renovations were being completed?
- Was there someone living in the property after it was renovated?
- Could you please provide a copy of the OC (Occupancy certificate for new builds)
- Could you please provide waterproofing certificate? (for any bathroom renovation)
- Could you please provide the DA? (Development Approval)
What information do I need from the client after getting the green light?
Having the necessary information ready for negotiations is crucial for presenting your strongest offer promptly and without delays. This information is provided by the client once they give their approval during the property presentation.
Here’s some of the information you need to know from the client:
Deposit amount:
If a deposit amount is larger this can give the vendor confidence of our client’s financial position.
For example: The initial deposit could be $1,000 typically and we offer $10,000 to provide confidence to the vendor.
Finance Approved or Cash:
A lender has approved their home loan or they have cash for a purchase.
Why does this matter:
Sometimes a lender can be the reason a purchase doesn’t proceed i.e the bank values the property for less then the purchase price and the buyer pulls out. If in reverse and the situation were flipped around you wouldn’t want to do a cash offer in an area where we know valuations are coming back lower.
Max Price:
The maximum amount our client is prepared or willing to spend on the property.
Tip: Our positioning to the client is to get the permission to go to our top end of range but not over.
Pest & Building Clause:
This clause grants us the right to a building & pest inspection and the ability to withdraw, negotiate price or ask for rectification of items from the report. (Depending on the state)
Are our clients open to having no building & pest clause as part of the negotiations? We recommend to have a p & b clause in all situations but in rare cases follow clients instructions not to
Settlement period range:
A shorter settlement or longer settlement can provide an advantage o cater to the seller’s needs what day range are our client comfortable with i.e 30-90 days.
Must watch: In this Video, Arjun will walk you through the key information you gather, and how to frame it through negotiation to increase your chance of success.
Negotiation Clauses and Strategies
When explaining and recommending different strategies and clauses to our clients, it is crucial to clearly outline the pros and cons of each option, explain why we are considering them, and ensure the client feels comfortable. Ultimately, the decision should rest with them.
Here’s a breakdown from the video above:
Typical to Aggressive Clauses
Typical Clauses:
- Finance Clause: Protects buyers if finance issues arise.
- Pest and Building Inspection (P&B): Ensures structural soundness.
Removing Finance Clause:
- Pros: Stronger buyer perception; potential to win without being the highest bidder.
- Cons: Buyer assumes risk if finance is not secured.
Example: Winning a deal at $640k despite a competing $650k offer due to a clean, no-finance clause.
Removing P&B Clause:
- Process: Use the cooling-off period (e.g., 5 business days in QLD) to conduct inspections.
- Benefit: Offers flexibility while presenting a competitive offer.
Considerations by Location:
- South Australia: P&B during cooling-off period; finance clauses hold higher importance.
- Victoria: P&B clauses only cover "major defects"; ensure clear communication with inspectors.
- New South Wales: Consider shortening the 10-day cooling-off period for a competitive edge.
Client Communication and Expectation Management
Explaining Ranges
- Positioning: "The range is not an immediate sale price but reflects comparable value."
- Clarification:
- Some properties may sell below the range.
- Ranges account for market variability, not a fixed price.
Decision-Making Framework:
- Present options with pros and cons for each clause/strategy.
- Avoid assuming buyers want maximum protection; tailor the approach to their risk tolerance.
- Recap decisions in writing (e.g., via WhatsApp) for clarity and record-keeping.
Language to Build Confidence:
- Replace "Do you have questions?" with:
- "What clients typically do is..."
- "Our next steps from here usually are..."
- "What I’d suggest is..."
How to present your offer to the agent
Effectively presenting an offer involves tailoring it to the seller's priorities, showcasing strengths like clean conditions or a strong financial position, and justifying the price with market insights. A clear, professional written offer builds trust, fosters dialogue, and increases acceptance chances.
What to say when talking to agent
The below scripts can be used on a call, or if meeting with an agent in person.
On Market:
Phone Script 1 - Leverage Arjun and IKIT:
‘Hi [agent name], this is [your name] calling from InvestorKit Buyers Agency. I am calling to talk about [property address] as we have a client who is interested in this property.
I know that you have worked with Arjun and the team previously on [multiple properties] or [specific address] [delete if not relevant]
Our clients are investors, so would be looking to have some support with property management [delete if not relevant – E.g., sales agency only with no PM team]’
Other Questions to add after the introduction:
‘Are your vendors needing to rent back for any reason, I’m sure we could assist in organising this if needed [delete if not relevant – E.g., known investor vendor]’
‘When are you looking to close offers for this one? Any reason you would close offers earlier?’
‘Where in your listed range [if range advertised] is current interest? Where is current interest sitting for this one [if no range listed]’
OR
‘What price do you think would buy this one?’
OR
‘Based on the offers that have already come through, where in the XX’s do you feel our offer needs to be?’
Depending on answers above (may require):
‘Ok, since the property has already gone above asking price, do you still feel it is worth us submitting an offer for this one?’
‘Do you feel the vendor is likely to come back with a counteroffer?’ [delete if not relevant]
‘Our client is in a strong financial position, would a no finance clause help strengthen our offer?’ [Only if discussed with client prior]
‘Any settlement timeframes preferred by the vendors?’ [Adjust if our client has specific settlement timeframe requirements]
‘What is your preferred method for offer submission?’
‘Great, if you can send the offer form to XXX@investorkit.com.au’ [if applicable]
OR
‘Great, I will have a chat to my buyer, and will [text], [email] our offer submission
Look forward to hearing the outcome of our offer.’
Off Market:
‘Hi [agent name], this is [your name] calling from InvestorKit Buyers Agency. I am calling to talk about [property address] as we have a client who is interested in this property.
Thank you for the opportunity to see the property [off] or [pre] market
I know that you have worked with Arjun and the team previously on [multiple properties] or [specific address] [delete if not relevant]
Our clients are investors, so would be looking to have some support with property management [delete if not relevant – E.g., sales agency only with no PM team]’
Are your vendors needing to rent back for any reason, I’m sure we could assist in organising this if needed [delete if not relevant – E.g., known investor vendor]
When are the vendors looking at listing this one [pre-market]? [delete if not relevant]
What price point do you feel buys this one off-market?
Do you feel the vendor is likely to come back with a counteroffer? [delete if not relevant]
Any settlement timeframes preferred by the vendors? [Adjust if our client has specific settlement timeframe requirements]
What is your preferred method for offer submission?
Great, if you can send the offer form to XXX@investorkit.com.au [if applicable].
OR
Great, I will have a chat with my buyer, and will [text], [email] our offer submission.
Look forward to hearing the outcome of our offer and thank you again for the opportunity to see this one [pre] or [off] market.
What to double check before submitting your formal offer
Before you submit a formal offer you want to double check you have all the details correct as once it is on a signed contract it is extremely hard to change. Some of these details include all the correct and complete offer amount, purchaser details, the clauses and special conditions etc.
State by State Guidelines
Every state in Australia has different laws and purchase processes when purchasing real estate. The below document will assist you in understanding the different timelines and clauses within different states along with our key contacts within the states.
Link: State by State Guideline
COS - Special Conditions / Clauses
Advertising for rent
This clause allows us to advertise the property for rent once the property is unconditional and prior to settlement.
Clause Variation 1:
1.0 The Seller acknowledges that the Buyer is an investor who wishes to minimise the potential for the property being vacant for a prolonged period of time. Immediately upon the contract becoming unconditional, the Seller authorises the Buyer and/or their property manager to begin formalising lease arrangements with the existing tenants or to advertise the property for rent for the purpose of finding a suitable tenant. The Buyers property manager may also conduct rental open home inspections as long as they are conducted as days/times mutually agreeable to the seller and sales agent.
1. Images from realestate.com.au used to advertise the property can be used by the buyers to advertise for tenants with a property manager of the buyers choice. if watermarked, the sales agent is to provide versions without any watermarks
2. Prospective tenants shall be permitted to access the property, with 24 hours notice, for the purpose of entering into a general tenancy agreement with the buyer; upon the contract of sale entering into the unconditional period
Clause Variation 2:
3.1 Once the contract is unconditional, the seller will allow the buyer or the buyers letting agent to advertise the property for rent.
3.2 Once the contract is unconditional, the seller authorises the sales agent to provide the images of the property used for the purpose of marketing the property for sale to the buyers letting agent
3.3. The seller allows the managing agent to conduct a minimum of 1 open inspection per week to show prospective tenants through at mutually agreeable days/times to the sales agent (48 hours notice to be provided is owner/tenant occupied)
3.4. The seller allows the managing agent to use the professional photos from realestate.com to list the property for rent, alongside the versions without any watermarks where applicable and required.
3.5. The seller allows the managing agent to begin advertising once the contract is unconditional.
Video inspection clause
This clause allows us the right to a video walkthrough of the property within 14 days and the right to withdraw without penalty if we are not satisfied.
Clause below:
- The seller will allow the buyer (or someone on their behalf) to take videos of the property (inside and out) within 14 days from the contract date. In the event the buyer is not satisfied with the property after viewing the video, the buyer may by notice in writing, terminate the contract and any deposit paid will be returned to the buyer in full.
Satisfactory searches, approvals etc.
This clause allows us to withdraw without penalty, if we are not satisfied with the searches, information or documents we do or don’t receive.
Clause below:
1. This contract is subject to and conditional upon the buyer obtaining satisfactory information and documents on the property including but not limited to searches, copies of approvals, making enquiries with Council or any other relevant Authority within 14 days from the contract date. In the event the buyer is not satisfied with the information and/or documents received, the buyer may by notice in writing, terminate the contract and any deposit paid will be returned to the buyer in full.
Shed/carport/other structure
This clause allows us to withdraw without penalty, if we are not satisfied with the council approval documents, we do or don’t receive.
Clause below:
1. This contract is subject to and conditional upon the seller providing to the buyer Council approval and any other relevant documentation for the [INSERT] on the property within 14 days from the contract date. In the event the seller has not complied with this clause, the buyer may by notice in writing, terminate the contract and any deposit paid will be returned to the buyer in full.
Removal of swimming pool
This clause allows us to withdraw without penalty, if we are not satisfied with the pool removal and filling.
Clause below:
1. This contract is subject to and conditional upon the seller removing the swimming pool located on the property and filling in the area where the swimming pool was located with all work to be done in accordance with relevant legislation or code and any requirements of any regulatory Authority. The seller must provide evidence of same and all relevant documentation to the buyer prior to settlement.
Rent back clause
This clause is an agreement between the buyer and the seller for the seller to rent back the property to the new owner after settlement.
Clause Variation 1:
1. The buyer agrees to rent back the property to the seller upon the following terms:
(a) The weekly rental is to be $[INSERT] from the date of settlement.
(b) The bond payable by the seller is to be the equivalent of 4 weeks rent.
(c) The rental term is to be [INSERT]; and
(d) The buyer and the seller will enter into a Residential Tenancy Agreement through the buyer’s managing agent prior to settlement.
Clause Variation 2:
- The buyer agrees to rent back the property to the seller upon the following terms:
(a) The weekly rental is to be $[INSERT] from the date of settlement;
(b) The bond payable by the seller is to be the equivalent of 4 weeks rent;
(c) The rental term is to be [INSERT];
(d) The seller may give notice in writing to the buyer that it wishes to end the lease term by giving at least two weeks written notice (with no penalties to be incurred by the seller for ending the Residential Tenancy Agreement early); and
(d) The buyer and the seller will enter into a Residential Tenancy Agreement through the buyer’s managing agent prior to settlement.
Access for renovations before completion (P&B provided by seller & satisfied)
The clause below are to allow our buyer and their trades to obtain quotes and/or carry out works prior to settlement with specific conditions.
Clause below:
1. The Seller agrees to allow access for the Buyer and appropriate tradespeople at reasonable times to the property to obtain quotes to conduct renovations to the property (“the Work”).
2. On the Contract becoming unconditional, the Seller agrees to allow the Buyer access to commence the Work. The Work must be conducted in a satisfactory and workmanlike manner by appropriately qualified and/or licensed tradespeople at the Buyers cost.
3. In the event that Completion does not occur, through no fault of the Seller, the Buyer agrees to pay all the costs to ensure the Work is completed in a satisfactory and workmanlike manner and hereby indemnifies the Seller against any costs, damages or other liability caused by the Work.
4. The Buyer must take out and provide copy of appropriate insurance to the Seller’s satisfaction and ensure the tradesmen are also insured.
Formally submitting an offer
After you have had a verbal conversation of an offer with the agent, formally submit the offer in writing, some agents or states will want you to do it a certain way so make sure you ask for this. You also want to make sure you have your clauses, purchaser details and special conditions confirmed when submitting your offer. Without a template, contract of sale or offer form being provided to you, our standard one is below:
Offer Submission Template (modify special conditions accordingly)
To: Agent |
CC: Acquisitions@investorkit.com.au |
Subject: Your Name/InvestorKit - Formal Offer | Address |
Hi xxx,
Please see the below offer from our client. He/she is highly qualified and pre approved. (delete if not applicable)
Please send me a copy of the contract of sale & title so I can review with my client and expedite the signing process.
The docusign contract can also be sent to the buyer simultaneously.
Purchaser Full Name (incl middle names):
Insert Full Name (insert email)
Purchaser Address: Insert address
Phone number: (mobile number)
---------------------------------------
Property Address: Insert address
Purchase Price: $xxx
Balance Deposit: $xxx (due within xx business days of contract date)
Building and Pest Condition: xx days
Finance Condition: xx days
Settlement Date: xx days
Chattels Section
- All ceiling fans and air conditioners in working condition (including remotes where applicable), working oven, stove and range-hood in kitchen.
Special Conditions Section
• The Seller acknowledges that the Buyer is an investor who wishes to minimise the potential for the property being vacant for a prolonged period of time. Immediately upon the contract becoming unconditional, the Seller authorises the Buyer and / or their property manager to begin formalising lease arrangements with the existing tenants or to advertise the property for rent for the purpose of finding a suitable tenant. The Buyers property manager may also conduct rental open home inspections as long as they are conducted as days/times mutually agreeable to the seller and sales agent.
Solicitor details:
Insert solicitor details
---------------------------------------
Please note this is my client's preferred property, but failing this offer they will pursue their second preferred property.
I have been instructed this offer expires xxx
Any questions please let me know |
How to Negotiate
Negotiation is an art form. It’s something you generally learn as you go but lucky for us, we have one of the best negotiators in Arjun as our leader, who has shared all the tips and tricks to secure deals with the best price and the best terms. If that wasn’t enough, we also recently had Scott Aggett come and host a training session, on all things negotiation.
Check out this must see session below
Agent negotiation masterclass with Scott Aggett
Here’s the takeaways from the session below:
Step 1: Prepare for the Negotiation with Market knowledge
- Action: Familiarise yourself with the property, recent comparable sales, and the market conditions.
- Example Script:
- “Hi [Agent’s Name], I’m calling regarding [Property Address]. I’ve reviewed similar properties like [Address 1] and [Address 2], and I’m keen to understand where this one sits.”
Step 2: Build Rapport with the Agent
- Action: Build rapport with the agent by using a friendly, empathetic, and confident approach.
- Example Script:
- “Hi [Agent’s Name], I understand you’ve been super busy in this market. I appreciate your time and your work on [Property]. How’s the campaign been going so far?”
Step 3: Gather Key Information
- Action: Ask targeted questions to understand the seller’s motivations and the competition for the property.
- Key Questions:
- "What’s the seller’s preferred settlement timeline?"
- "Are there any other offers currently on the table?"
- "What price would the seller be willing to accept today?"
Step 4: Leverage Other Properties
- Action: Use an alternative property or off-market listings as leverage to guide the negotiation.
- Example Script:
- “We’re also considering [Other Property Address] which meets most of our criteria. However, this property is our preference. If we can meet your client’s needs quickly, we’d love to get this one secured.”
Step 5: Making a Strong Offer
- Action: Offer 95-97% of the target price to engage the seller and avoid unnecessary low-ball rejections.
- Example Script:
- “We’re ready to offer $[X], which is a strong, fair number considering the current market conditions and comparable sales.”
Step 6: Set Deadlines for Offers
- Action: Push for clear deadlines to ensure efficient decision-making and avoid open-ended negotiations.
- Example Script:
- “We’d like to move quickly. Can we confirm a decision by [specific time or date]? If it doesn’t align, we’ll need to focus on another opportunity.”
Step 7: Handling Counteroffers
- Action: Stay positive and reiterate your interest while pushing back strategically.
- Example Script:
- “We appreciate the counteroffer, but based on our analysis and the condition of the property, we believe our number at $[X] is the right value. Let’s work together to make this happen.”
Step 8: Agents love to SMS
- Action: Use concise SMS communication to nudge negotiations along without unnecessary back-and-forth.
- Example SMS:
- “Hi [Agent’s Name], we’re prepared to move forward at $[X]. Can you confirm with the seller and let me know by [Time]?”
Step 9: How to Address Challenges with Confidence
- Action: Handle any perceived bluffs or delays by clarifying the process and deadlines.
- Example Script:
- “I understand the seller might need more time, but we’re working with a timeline too. Could you confirm if we can wrap this up by [specific date]?”
Step 10: Close the Deal
- Action: Ensure all terms are clearly understood, and prepare to act fast to finalise the transaction.
- Example Script:
- “Thanks for working with us on this. Let’s lock in the deal at $[X] and move forward with the contracts.”
What to do once you have an outcome
Whether it’s a positive outcome or we missed out on the property, the most important thing to do is to communicate to the client as quickly as possible with the right information. Sometimes missing out on a property is the best thing that can happen as it may help you learn something you could’ve done better or maybe the client is now more informed about the process and the markets they are interested in.
After multiple back and forth of negotiations, offer is not accepted
Message the client on WhatsApp and let him know that the offer was not accepted and the reason why (as per information provided from agent)
WhatsApp Recap message template for you to use:
‘Hi [Client]
The property is under offer and went above 620k it goes to show how fast the market is!
This shows we are looking at the right markets for you.
We will be in touch as soon as the next one comes up and fits your brief.’
Offer Accepted
When calling the client to congratulate them on offer getting accepted remember to bring the energy and highlight the effort and lengths you went to, to achieve this amazing result for them.
Here’s a couple of tips to really bring the above to life:
- Bring positivity and high energy to the congratulations call
- Sales agent was pushing for more
- Stayed firm
- Arjun got involved and chatted to the agent played relationship card
- Finally got it across
- Wrap up with next steps and that both Arjun and I excited
Send recap message on WhatsApp Group after the call:
Template 1:
Hey [Client] Thanks for the chat just now!
Once again wishing you a massive congratulations, we were able to secure the property for [Price] which is a great outcome right at the [wherever within CMA range] Extremely happy for you and stoked on the outcome here especially in a very hot market 🥳🥳
The contract is currently being drawn up and will be sent through via docusign for signing. Nadia our conveyancer will review the contract and form 1 (title search) document in full throughout the cooling off period so we aren't locked in until we have satisfied cooling off. You are able to back out throughout this period at any time due to any reason. Once the contract is ready I will confirm all the details provided are correct before you sign.
The cooling off period which is two full business days will start from the later date of the contract being fully signed or receiving the form 1 (title search) document.
After we are satisfied and the cooling off period expires, the initial deposit of $20k is payable the following business day
We have a [Days] day pest & building clause in place, along with a [days] day finance clause. Settlement will also be organised for the [Date and month]
I will keep you informed once the contract has been sent through and is ready for signing.
Thank you and once again, massive congratulations!! 🎉🎉
Template 2:
Hi xxx, wishing you a massive congratulations once again on securing this property!
As mentioned, once I receive the contract I'll pass it onto the solicitor so they can review it before you sign.
I'll send out an email regarding next steps once the contract has been fully signed!
A great outcome and extremely happy for you!!
Wow, not only did you secure the property, you got the best price and terms for our client! What’s next? check out the below: link
Learning Competency Checklist
1. Understanding the Importance of Pre-Offer Preparation
- Competency: Demonstrate a thorough understanding that effective offer preparation begins well before the actual submission and involves detailed information gathering.
- Pass Criteria:
- Clearly explains the need to gather critical data early in the process to tailor the offer and gain a negotiating edge.
- Recognizes that early preparation sets the stage for successful negotiations.
- Fail Criteria:
- Fails to acknowledge the importance of early preparation.
- Overlooks essential steps required before making an offer.
2. Identifying Critical Information from the Agent
- Competency: Recognize and gather the key pieces of information needed during the initial call with an agent.
- Pass Criteria:
- Accurately lists the types of information required, such as due diligence details, seller motivation, buyer interest, and specific terms.
- Understands that this information forms the basis for a tailored offer and effective negotiation.
- Fail Criteria:
- Omits or misidentifies key information needed from the agent.
- Does not link the gathered data to the development of a competitive offer.
3. Assessing Due Diligence Requirements
- Competency: Demonstrate an understanding of the role due diligence plays in ensuring a property meets quality standards before submitting an offer.
- Pass Criteria:
- Explains why confirming property details (e.g., address, dimensions, renovations) is essential to avoid pursuing sub-par assets.
- Shows awareness that failing due diligence should halt the offer process.
- Fail Criteria:
- Fails to recognize which due diligence factors are critical.
- Proceeds with an offer without verifying essential property details.
4. Evaluating Seller Motivation and Buyer Interest
- Competency: Show the ability to assess the seller's reasons for selling and the level of buyer interest, both of which influence the offer strategy.
- Pass Criteria:
- Explains how seller motivation informs the urgency and terms of the offer.
- Understands that high buyer interest can drive a more competitive offer.
- Fail Criteria:
- Neglects to consider the seller's motivation or buyer interest in forming the offer strategy.
- Uses a one-size-fits-all approach regardless of market dynamics.
5. Understanding and Negotiating Key Terms
- Competency: Identify, understand, and explain the non-price components (terms) that are critical in structuring an offer.
- Pass Criteria:
- Lists important terms such as finance clause, P&B clause, deposit details, cooling-off period, and settlement dates.
- Describes how adjusting these terms can strengthen the offer by aligning with the seller’s priorities.
- Fail Criteria:
- Fails to include critical non-price terms in the discussion.
- Does not demonstrate how modifications to these terms can impact the negotiation outcome.
6. Determining an Appropriate Buy Price
- Competency: Use market data and property specifics to derive a competitive and realistic buy price.
- Pass Criteria:
- Explains the process of determining the buy price by referencing comparable sales, property condition, and current market trends.
- Recognises the need to adjust pricing based on the information provided by the agent and market analysis.
- Fail Criteria:
- Uses a generic price without considering market comparables or property specifics.
- Does not justify the offer price with data or analysis.
7. Collecting Client Financial Information
- Competency: Understand the importance of obtaining critical financial details from the client to support the offer.
- Pass Criteria:
- Identifies essential client information such as deposit amount, finance approval status, and maximum spending capacity.
- Explains how these financial details contribute to shaping a strong offer and negotiating leverage.
- Fail Criteria:
- Omits key financial data needed for negotiation.
- Fails to connect client financial information with the overall offer strategy.
8. Applying Negotiation Strategies and Clauses
- Competency: Demonstrate the ability to integrate various negotiation clauses and tactics into a compelling offer strategy.
- Pass Criteria:
- Outlines different negotiation options and explains how they can be used to protect the client’s interests.
- Describes how to leverage clauses (e.g., removing finance or P&B clauses) and the benefits and drawbacks of each approach.
- Fail Criteria:
- Is unable to differentiate between negotiation strategies or provide a rationale for selecting specific clauses.
- Does not address how negotiation tactics influence the strength of the offer.
9. Formally Submitting the Offer
- Competency: Understand and execute the process of formally submitting an offer in writing, ensuring all details are correct and complete.
- Pass Criteria:
- Explains the steps for compiling the offer submission, including purchaser details, offer amount, and all clauses.
- Demonstrates knowledge of how to use a standard offer template and modify special conditions as necessary.
- Fail Criteria:
- Omits essential components from the offer submission.
- Fails to use the standardized format or lacks clarity in the submission process.
10. Communicating Effectively with the Agent
- Competency: Exhibit the ability to use prepared scripts and adapt your communication style when discussing the offer with the agent.
- Pass Criteria:
- Demonstrates how to initiate a call using tailored scripts for on-market and off-market scenarios.
- Explains how to ask targeted questions that reveal seller priorities and gather additional information.
- Fail Criteria:
- Uses a generic script that does not adapt to the agent’s responses or property specifics.
- Fails to elicit necessary information during the conversation.
11. Handling Counteroffers and Setting Clear Deadlines
- Competency: Show proficiency in managing counteroffers, establishing firm deadlines, and ensuring a timely negotiation process.
- Pass Criteria:
- Explains strategies for addressing counteroffers and the importance of setting specific deadlines to drive decision-making.
- Demonstrates techniques to reaffirm the strength of the initial offer and secure a quick response.
- Fail Criteria:
- Is unable to set clear deadlines or manage counteroffers effectively, resulting in prolonged negotiations.
- Does not provide a mechanism to streamline decision-making.
12. Post-Negotiation Follow-Up and System Updates
- Competency: Understand the importance of follow-up actions after the negotiation call and updating internal systems accordingly.
- Pass Criteria:
- Outlines the process for sending a recap message to the client, updating system statuses (e.g., in Attio), and notifying strategists of the outcome.
- Recognizes the significance of documenting feedback to refine future offers.
- Fail Criteria:
- Neglects to follow up or update internal records, resulting in miscommunication or loss of valuable client feedback.
13. Integrating Negotiation Information into a Cohesive Strategy
- Competency: Demonstrate the ability to synthesize all gathered information—from agent feedback, market data, and client financials—into a cohesive and compelling offer strategy.
- Pass Criteria:
- Explains how various pieces of information are integrated to form a competitive offer that is tailored to the client’s needs and market conditions.
- Articulates a clear rationale for the final offer and how it positions the client for success.
- Fail Criteria:
- Fails to connect disparate data points into a unified strategy, resulting in an inconsistent or weak offer.
- Lacks a clear explanation of how the final offer is determined.