UNDERSTANDING THE NEGOTIATION PROCESS

Negotiating the selling price of a property is a tricky process and emotions often run high.  Vendors sometimes think that moving from their original asking price means they are “losing money”, while purchasers are afraid of “going too high” in the heat of the moment. It’s a wonder properties ever get sold, when the price a purchaser is prepared to pay is often so much less than a vendor is prepared to sell it for!

Whether you are buying or selling, it helps to remember that market value for any property can never be scientifically established or arbitrarily insisted on. A property’s price depends on purchaser demand at the time of selling; when there is little buyer interest in a property, the price tends to be lower. If there are lots of buyers competing for a property, the price tends to be higher. Neither the vendor’s “I won’t take any less than…” or the purchaser’s “This is my final offer” actuallly determine the price. The price only becomes a reality when two parties agree to it and exchange contracts at law. In the course of negotiation, the vendor’s desire to get the highest price is offset against the purchaser’s desire not to pay too much. Neither wants to miss out –  vendor on  sales,  purchasers on  properties they have set their heart on. The point or price that is neither too little nor too much depending on where you are standing is arrived at by small (usually!) adjustments until the two parties evolve to a position they find mutually satisfactory.

Many vendors and purchasers think they can deliver a price ultimatum. If this is done before the market value is arrived at, it will usually bring negotiations to an end. The New Shorter Oxford Dictionary (1993) says: “It is not a negotiation when one party says “this is what I want.” It is easy to forget that market forces dictate prices and vendors who say: “We need $x to buy what we want” and purchasers who say: “This is my one and only offer, take it or leave it” need to ask themselves whether they have based their figures on analysis of past selling prices for similar houses, and not on their own wishful thinking. Whether you’re a purchaser or a vendor, leaving a window open for negotiation usually means you won’t get the door closed on the sale.

Where the balance of power lies in negotiations depends on the market. In a sellers’ market, vendors can and do make ultimatums and hold out for dream prices, while in a buyers’ market it is the buyers who have the upper hand in any negotiations.

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‘STAND AND WAIT’ NOT GOOD MARKET STRATEGY

When media reports start talking about static or falling home prices, many homebuyers think that it’s a good idea to watch the market and wait for it to reach the bottom. They feel that if they postpone their purchase long enough, they are likely to see prices fall further and snap up a ‘real bargain’.

While bargains do exist, of course, for people who are in the right place at the right time, there are often more people who miss out by using this strategy than gain.  Most homebuyers buy their family home and live in it for, on average, seven to ten years.  And when we’re looking at averages, the property market continues, in the big picture, to rise. Based on historical property cycles, property may undergo periods of static growth and periods of galloping growth, but on average, well-located, well-selected residential property doubles in value every ten years or so. Certainly, if we could always pick the lowest time to buy and the highest time to sell we would do very well indeed, but the only buyers who need worry about the immediate state of the market are the real estate speculators who wish to buy then sell again straight away, or those who are too highly geared or who have entered into unrealistic amounts of debt. For everyone else, the chances of strong long-term capital gain are virtually assured, provided they buy well-selected property in well-selected locations.

It’s famously difficult to pick the ‘bottom’ of the market. Often buyers who wait find themselves having little to choose from as listings get scarce – and a sudden flurry of competition for the few desirable properties actually on the market for sale often causes them to sell for higher prices than expected, even in a market described as a difficult one for sellers.  Buyers end up paying more than they bargained for if they  keep on watching and waiting;  because the ‘flurries’ they waited out were signalling an upturn in the market or the end of the halcyon days for buyers.

Purchasers who wait too long for a ‘bargain’ or the ‘lowest point of the market’ often only realise that the lowest point has already been reached once they can look back on it with the 20/20 vision of hindsight.

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Summer is quickly approaching - Pool Safety Tips

As the months warm up the need to cool off becomes ever greater, and the swimming pool is an attractive remedy to beat the heat.


However, with drowning danger apparent, it is important that everyone takes pool safety seriously. Following are some tips to ensure that your pool is safe during summer, which could save someone’s life:


• Ensure there is a CPR sign clearly displayed near your pool.

• Make sure that everyone at your home knows the CPR process. You can attend courses through the local Ambulance service.

• Ensure that you have rescue equipment by the pool in case of an emergency.

• Don’t leave climbable objects near the pool fence.

• Don’t leave equipment or toys in the pool as it can encourage small children to want to get in the pool.

• Always have an adult present when small children are swimming in the pool.

• Take your phone outside when supervising small children so you don’t have to leave… even for a minute.

• Never leave the pool gate propped open. This not only poses a danger to small children, but weakens the hinge on the pool gates, often causing it not to close properly.

• If you have a pool cover, always ensure that it is secured to the pool so small children cannot climb under.

If you are concerned about the safety of your pool it is recommended that you contact your local pool safety expert for professional advice