Transcript

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[Music]
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when buying a property sometimes it can
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pay to keep a little something up your
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sleeve telling the real-estate agent too
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much information can cause you to pay a
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higher price for a property and put you
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in a situation where you don’t have the
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maximum negotiating power that you could
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have today I’m going to look at seven
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things not to tell a real estate agent
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so you can make sure that you’re in the
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best position when it comes time to
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negotiate so what are the things that we
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don’t want to tell our real estate agent
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and that we want to keep up our sleeves
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or keep hidden away when it comes time
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to buying a property or negotiating for
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a property well the first thing not to
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tell a real estate agent is that you’re
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in a rush so maybe you’ve just sold your
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property and you’ve got a certain amount
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of time where you need to get into
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another property otherwise you’re going
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to be in dire straits or in an awkward
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situation you don’t want to let your
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real estate agent know that you’re in a
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rush because they could use that against
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you they could hold out offers against
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you so that when it comes time you
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you’ve got such a short timeframe to buy
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and to settle that you’re willing to pay
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more money just to get it within that
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time frame so you don’t want to let them
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know that you’re in such a rush to do it
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because they can use that against you
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think number two not to tell your real
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estate agent is how much you are willing
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to pay don’t give them your top figure
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again keep that up your sleeve keep it
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hidden because what they’re going to do
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is they’re going to firstly they’ll try
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and get you higher but secondly they’re
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probably going to take your top figure
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and use it as negotiating power with
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other potential buyers and say well this
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person is willing to pay X amount and
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you know what are you willing to offer
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for the property and they can try and
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force you into a bidding war now
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obviously if you’re in a bidding war
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you’re probably going to have to offer
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your top amount in order to secure the
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property but if things are a bit slow
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and you’re making an offer
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don’t make an offer of 560,000 and say
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look here’s my offer five hundred sixty
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thousand but the maximum I’m willing to
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go to is five hundred and eighty
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thousand because the real estate agent
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is going to say awesome this person is
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willing to pay five hundred eighty
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thousand let’s see how close we can
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stretch them to that they’re not going
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to say okay five sixty well let’s let’s
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run with that number three not to tell
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your real estate agent is that you just
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missed out on another property and
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you’re really upset about it if you just
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miss out on a property and you feel like
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you didn’t do enough to get it chances
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are that you’re in a highly emotional
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state and you may go ahead and purchase
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a rebound property and so but don’t keep
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your emotions within don’t get too
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excited don’t don’t get too upset with
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the real estate agent don’t tell them
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that you’re so desperate to buy because
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you just missed out on a property number
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four is that you have to have it you
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don’t want to let your real estate agent
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know that you are willing to buy this
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property at any price that you have
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looked at a hundred properties and
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you’re willing to pay over and above
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what this property’s worth because it’s
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absolutely perfect for you and your
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family if they hear that from you if
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they know that then they’re going to
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continually push you to try and get the
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highest amount or they’re going to get
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you in a bidding war against someone
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else so by even if you do have to have
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it by staying calm cool and collected
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and not letting that out you can
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negotiate more effectively it’s hard
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thing to do but if you can do it it’s
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going to help you number five not to
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tell your real estate agent is that you
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really have no idea about the market no
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idea what a property is worth because
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they can then advise you on what a
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property is worth and what the market is
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doing by taking you know specific
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examples that back up their argument
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even though the property market might be
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going downhill fast even though the area
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might not be that great an area if you
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let them know that you have absolutely
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no idea what the property market is
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doing or they might lead you to think
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that the property market is blue
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or that you’re gonna miss out even
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though the property market is actually
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in decline and it’s a buyers market
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so don’t let them know that you have no
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idea but preferably get educated do some
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research and find out exactly what the
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area is doing number six is letting them
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know that you’re an outside investor now
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I don’t think it’s a bad idea to let a
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real estate agent know that you’re
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outside the area and you don’t
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necessarily know the area in full but
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letting them know that you’re an outside
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investor and you just want to buy some
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property in the area well again they can
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use that to their advantage and they can
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spin things to you to make it sound like
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as an outside investor this is going to
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be a great area to invest in blah blah
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blah blah blah and then get you trapped
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into buying a property in an area that’s
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not necessarily going to grow so you can
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say you’re from outside the area you
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might want to let them know that you’re
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thinking of moving to the area or you
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know you’re purchasing it to move in the
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future where are the good spots and so
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forth don’t let them know you’re an
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outside investor who has no idea about
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the area who has to buy a property in a
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rush you know you’re just gonna not put
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yourself in the best position and number
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seven is that you’re don’t tell the real
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estate agent your future plans to
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increase the value of the property so
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maybe you’ve got future plans to split
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the property in two and turn it into a
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dual occupancy maybe you’ve got future
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plans to do an extension or you go to
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creative way to turn the garage into a
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granny flat and it’s only going to cost
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you ten thousand dollars and it’s going
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to generate you a massive amount of
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income each year because by telling them
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your future plans two things could
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happen they could take your future plans
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and use that to sell to other potential
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buyers to say you know you could do this
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you could convert this into a granny
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flat you could add this extension you
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could just put a wall here and it’ll
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basically split into two different
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properties you don’t want to give away
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all your cards because they will use
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that to sell to other buyers and the
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other thing that they might do is
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actually use that to up the value of the
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property they can see a property valued
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a certain amount of money but if you put
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$10,000 into it it’s going to be worth
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$40,000 more well they might want to tap
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into some of that profit that you’re
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gonna get and say well look if you pay
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twenty thousand dollars more you’re
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still going to put in ten grand but
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instead of getting 40 back you’re gonna
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get ten back what’s hitting still pretty
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good and I’ll just take 20 for myself
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and my pen door so as you can see
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basically all I’m saying is try not to
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give too much away and try not to put
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yourself in a position where the vendor
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and the real-estate agent have all the
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negotiating power against you
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and you have no negotiating power
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against them so I should really do an
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episode about how to negotiate and how
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to get the price down or at least you
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know make it feel like a negotiation
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even if you are always willing to pay a
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certain amount because at the end of the
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day is that back and forth and if you
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just offer a certain amount then people
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are going to be scared to just accept
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that because they’re always a little bit
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greedy want to get a little bit more so
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by actually being an effective
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negotiator you can actually make the
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vendor feel like they got a great deal
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even though you were probably willing
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just to pay that money anyway I hope
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that makes sense if you want more videos
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head over to onproperty.com.au/session
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one-to-five because this is episode 125
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so until tomorrow remember that your
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long-term success is only achieved one
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day at a time
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[Music]

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