For the latest episode of this bonus series of the property investing journey, Mike is joined by Melinda Jennison, Brisbane Property Specialist and Property Investment Advisor, to talk about how changing your negotiation strategy to meet the prevailing market conditions can give you the advantage in your next property purchase.
Mike and Melinda set out by discussing the difference between a buyer’s and a seller’s market, and the indicators that show which type of market you might be operating in. Melinda shares how the selling agent’s actions might give an insight into how they’re feeling about the prospects of the sale, and how you can use that to your advantage in your negotiations.
Melinda goes on to reference the psychology of a buyer’s mindset and how being prepared to go against the herd mentality and buy when everyone else is fearful, can often lead to a successful purchase.
Mike delves into the type of market that we’re in right now in Australia, and particularly in Melinda’s home town of Brisbane, and queries how the current market conditions might impact the way buyers and sellers engage. Melinda shares some of the specifics driving the market and why it’s important to understand both the seller’s mindset and the composition of what is actually selling and why.
If you’re wondering about the current market, or you’ve noticed changes in how open homes and auctions appear to be tracking, then this podcast will answer those questions and equip you with the knowledge you need to tackle your next negotiation. It’s a compelling conversation and clearly demonstrates the expertise that a Buyer’s Agent such as Melinda brings to the table.
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Mike is joined by Melinda Jennison, Brisbane Property Specialist and Property Investment Advisor, to talk about how changing your negotiation strategy to meet the prevailing market conditions can give you the advantage in your next property purchase. Melinda goes on to reference the psychology of a buyer’s mindset and how being prepared to go against the herd mentality and buy when everyone else is fearful, can often lead to a successful purchase.
What we cover in this episode
- Assessing the current market conditions
- Paying attention to market indicators
- The psychology of a buyer’s mindset
- The three types of markets
- Purchasing in a buyer’s market
- Understanding a seller’s motivation
- Why the highest offer doesn’t always win
“If the agent’s putting less urgency on you as a buyer then generally you know that it’s more likely to be a buyers’ market, you generally have more time to make big purchasing decisions when buyers are in control” Melinda 3:35
“When we’re in a bull market, a really hot market, that’s when we’re busiest because buyers like to ensure that they’re not going to miss out so there’s a lot more FOMO in a market that is growing in value very quickly” Melinda 5:04
“The psychology of a buyers mindset can really have an influence on what they do in different market conditions and how likely it is that they’re going to buy well versus overpaying” Melinda 5:52
“Understand the motivation of the seller but also understand what is the demand from buyers for that particular property because it’s only at that point that you can devise a plan” Melinda 11:00
“As a buyer you have to be prepared to either wait or walk away because I think a lot of buyers, especially over the last 18 months, became very familiar with FOMO and having to move very quickly. We don’t have to do that anymore so it’s pulling the handbrake on when there is an opportunity to do so” Melinda 14:55
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