The Golden Rule When Buying Real Estate


The key to negotiation is to allow someone to do it on your behalf.

You'll notice that the one thing a real estate sales agent will never, ever do, is allow you (the buyer) access to their vendor.  

The vendor has the single piece of information buyers can benefit from – the reserve price.

For example, the more information a buyer knows about the vendor’s circumstances and expectations, the easier it is to manipulate the deal to their own advantage.

Instead the agent will be evasive about their vendor’s preferences – with comments such as “we’ve not yet set a reserve.”

In reality, the agent knows the vendor’s ‘wish price’ from the onset.

This is why the most important key to successful negotiation is to place a buffer between you (the decision maker) and the real estate agent.

In the many articles and seminars we have witnessed on negotiation tactics, rarely – if ever - is this one golden rule mentioned.

Why the buffer?

If you show any emotional or physical reaction to a question or statement from the sales agent, you give away valuable information the agent will use to their benefit when brokering a deal.

It can be as subtle as a glance to your partner, a raise of the eyebrows or the tone of your voice.

This is one reason as buyer advocates, we gain a significant advantage when vendors attempt to sell their own property.  

Negotiating directly with a vendor enables us to unearth far more information than a well-seasoned sales agent would ever permit.

When we negotiate on behalf of buyers however, the sales agent is granted no such advantage.  

For example if a property is quoted at $800,000+, the question we may want to know is what amount of money will buy the property "today?"

If the agent grows attentive when we ask if the vendor will accept a certain amount – say, for example $850,000 or $860,000  - it gives us a better assessment of the vendor’s likely reserve - and it does so without compromising or disclosing our client’s position.  

If for example the agent asks if we can put $850,000/$860,000 in writing - we always have to refer back to our client.

We are not the decision maker.

Any information we provide the agent can be manipulated to our advantage when brokering deal on our client's behalf.

All the questions we ask are designed to unearth information you would never be able to do alone - at least not without disclosing vital information regarding your own circumstances. Information that would benefit the vendor.

There are numerous ways to negotiate.

It is about more than price alone.

Negotiating settlement dates, conditions on the contract, the deposit amount and so forth, are all useful tools to employ.

However getting someone to negotiate on your behalf is the most powerful.  

As the saying goes – “a man who is his own lawyer has a fool as a client.”

Don’t be that fool. 

Please contact us for more information.

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What our Clients are Saying

Catherine worked tirelessly in finding me a great property at a good price. She did things that I wouldn't have done (hours and hours of legwork) and more importantly, couldn't have done (organising the purchase before anyone else had even put in an offer). When I was ready to give up, Catherine kept working. I'm certain that I never would have been able to buy the same property within 10k of what we eventually settled at.... David
The expertise you bring are excellent and helped us understand the process and what to do and what not to do. You discussed at the beginning that by using you it will save us money and in our instance and the current environment of Melbourne’s market I believe you saved us $100,000 or enabled us to get into a suburb which going to auction would have gone way over our limit. You worked tirelessly to help us purchase a home.... Karen
“You impressed us from the start, especially compared with the other buyers agencies we approached…” - Raj

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Why use Cashmore & Co?

Our advocates and researchers are international experts on market and real estate cycles. 

With decades of experience working in the Australian real estate market Catherine Cashmore and her associates have lectured widely on the real estate cycle and the economics of investment.

Cashmore & Co use their expertise to assist investors, home buyers and developers.  They simplify the buying process saving buyers thousands in negotiation, as well as preventing costly mistakes.

Cashmore & Co's services and expertise will not only assist you to increase your wealth, but also educate you to become a better investor.

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About Catherine

Catherine Cashmore

Owner - CEO

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Catherine Cashmore has been working in the Australian real estate market for over 14 years.

She has assisted hundreds of home buyers and investors to secure real estate in the best possible location, for the best possible price.

A regular and highly respected commentator across local and international media, Catherine speaks about all aspects of real estate and the economy.

A sought after public speaker and President of Australia's oldest economics organisation, Prosper Australia, Catherine is called upon regularity to interact with policy makers and housing organisations to discuss real estate policy reform. As such she has an in depth knowledge about the Australian real estate market, few can rival.

Working with Philip J Anderson, an international leader on market cycles, Catherine is an expert on the real estate/land cycle and its effects on regional markets around the world.

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