Selling or buying a property represents one of the biggest financial transactions a person will undertake, and achieving the right price can be one of the hardest and most stressful things to do. 

Copas Newnham Principal, Doug Trenham said one of the most effective negotiation tools is the services of an experienced and reputable real estate agent who has strong local industry knowledge.

"The selected agent needs to be capable, have strong negotiation skills, but importantly be someone you are comfortable with," Doug Trenham says.

Negotiation Tips for Buyers

• Make sure you do your homework in advance of any offer
• Establish why the owners are selling to determine their priorities.
• Make offers as realistic as possible - there is not always a lot of room for movement on price, so unrealistic offers may only discredit your intentions.
• When offering less than the asking price, make contract conditions attractive to the seller (eg. agree to the seller's settlement time, have finance approval in place if possible, consider releasing the deposit)
• Be prepared to pay a little bit more for a good property in a good area.
• Put offers in writing so the seller can see your serious intent.
• Be clear on any timeframes around your offer, eg. Set a timeline for the owner to provide an answer, if they are indecisive.
• A good deposit can help tip the scales in your favour.

Negotiation Tips for Sellers:

• Be realistic - set your price based on fact, rather than emotion.
• Request a written offer to see how serious the buyer is.
• Don't waste time acting on the offer - a bird in the hand is worth two in the bush - don't run the risk of losing the buyer, it may take a while to find another one.
• Be willing to compromise, particularly on small matters and consider ways to give them a sense of value which may lead to a better sale price for you.
• Look at all the conditions of the buyer's offer, not just the price.
• Seek advice from those qualified to give it, rather than from family and friends.
• Employ the services of an experienced real estate agent who is capable of negotiating a good deal for you.