Direct Negotiations Case Studies

INTRODUCTION
Mr and Mrs Ohner live in Tennyson two streets back from the beach with their teenage Son 13 and daughter 15, in a character bungalow, situated a 850 m2 block of land. Both children show a natural talent for tennis and spend the majority of evenings on the public courts nearly 3 km from home.

The Ohners are happy that both children have found something they enjoy and are good at, so they have been ferrying the kids backwards and forwards for classes and practice sessions for years.

Across the road (1 street from the beach) the rundown block of yellow brick flats has become completely vacant, is unkempt and two hand painted signs have been placed on the front wall which read “for sale call 8855 7373”.

The Ohners have been watching the deterioration of this property for years. Over the last 7 years or so, The Ohners have discussed how perfect it would be to redevelop the site as a tennis court so that they could watch the kids play tennis safely in the evenings from their veranda.


METHOD#1
The Ohners call the phone number on the sign and explain their situation. The owner of the flats listens to The Ohners’ story and quickly senses that this is a golden situation, he states a price well above his previous expectations and digs his heels in hard.

Unfamiliar with this sort of negotiation style The Ohners hang up the phone disappointed.


RESULT#1
No Sale. The owner is an experienced property investor and always knew it is an excellent location. What he hadn’t expected was that anybody would be interested in the site for anything other than commercial business reasons.

The neighbours wanted the land to fulfill a dream and so in his mind, The Ohners would be prepared to pay any price that he nominated.

The figure quoted by the owner of the flats had been pulled out of thin air on the spot, with no regard to current pricing in the local area, essential demolition and removal costs or costs that he would bear in bringing in a selling agent.


METHOD#2
The Ohners call Direct Negotiations who immediately get to work creating a report of comparative sales, taking into account associated changeover costs, duties and planning fees. A fair and reasonable price for the property is calculated.

Then the Direct Negotiations team hold a strategic planning meeting to establish the best way to approach the owner of the flats. The Direct Negotiations team decide to wait for a short period of time before he contacts the owner, so as to let the owner of the flats cool down.

The following fortnight, the property next door to the flats is listed by a local selling agent for auction. The auction proceeds and the property is passed in at a reserve similar to the price that was pulled from thin air two weeks earlier.

The Direct Negotiations buyers advocate has updated his reports and has studied the latest sales in the area.

Armed with the facts and years of negotiation and auction experience Direct Negotiations approach the selling agent after the auction and start to implement their strategy.


RESULT#2
Sold! The Direct Negotiations buyers' advocate successfully purchased the block of flats at a very reasonable price which took into account associated changeover costs, duties and planning fees.

The Ohners were then able to clear the site and build their dream tennis courts all for less than the actual value of the block of flats next door.


SUMMARY
Direct Negotiations approach a selling agent fully informed about the local property market. Your Direct Negotiations buyers advocate only works with the facts not what the selling agent claims, hearsay or what the neighbour dreams about getting for their property.

You can take advantage of years of real estate and property experience and get the best purchase price possible.


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