Negotiation in Real Estate

You might have heard the expression, “everything in real estate is negotiable,” and it is true! Nearly every part of the purchasing phase of a real estate transaction is negotiable. Understanding more about the negotiation process creates additional options, and confidence increases the chance of getting the outcomes you desire.

Negotiating is the process by which two or more parties with different needs and/or goals work to find a mutually acceptable solution. Because negotiating is a process, each negotiating situation is different and influenced by the process and what compromises are available.  We often look at negotiating as unpleasant because it implies conflict, but negotiating need not be characterized by bad feelings or angry behavior. 

If you do not think you are good at bargaining, just reflect on how much we all negotiate in our daily personal and professional lives.  Everything from when a project is due to when a meeting is scheduled is negotiated. 

Sometimes it is easy to negotiate; however, if there is a great deal at stake or we are anxious about getting a particular property, then it seems more daunting and even difficult. 

Here are several tips to improve your effectiveness in negotiating:

Timing Matters

There are good times to negotiate and times that limit a deal. In real estate, the longer the home has been on the market, the better! If someone has just listed a home, then they are far less likely to negotiate.  Additional considerations include: Does the listing say it must sell fast? Is the home already vacant? Gathering additional data and choosing when to make an offer is critical to your ability to time the offer.

Evaluate the Data 

Negotiation includes doing research and, ultimately, both parties are trying to find a solution acceptable to close a deal. Ideally, one needs to understand the other person’s needs and wants, with respect to the listing. How much did they previously pay for the home? What is the condition of the property? What data do you have about the listing? Is the home vacant?

Remaining Neutral 

It is normal to become emotional during the negotiation process.  However, if one gets more emotional, they are less able to channel their negotiating behavior in a constructive way.  It is important to maintain control and not let pure emotions control the deal. There are also times that the purchaser gets to emotionally attached to a property.

Explore Options

Before entering into a deal, prepare some options that you can suggest if your preferred solution or price is not accepted.  Anticipate why the other person may resist your offer, and be prepared to counter with an alternative.

No Need to Argue  

Negotiating is about finding solutions and arguing is about trying to prove the other person wrong.  When negotiating shifts into an effort to prove the other one wrong, no progress is gained. Do not waste time arguing. If you disagree with something, state your disagreement in a gentle but assertive manner, emphasizing what you want to achieve.

Conclusion    

Negotiating is a complex process; however, it can be mastered. If you focus on what you want to have happen, practice these suggestions and utilize the professionals on your power-team, you will be a strong negotiator and win over the deals you desire.

Leave a comment

inc5000_medallion

"Inc. 500 is a registered trademark of Mansueto Ventures LLC."


Copyright © Response Marketing Group, LLC. All rights reserved. 360 S Technology Ct. Lindon, UT

DISCLAIMER: We provide education and training. We do not sell a business opportunity. We make no earnings or return on investment claims. Additionally, we do not offer any tax, accounting, financial, or legal advice. Further, we cannot, and do not, advise anyone regarding retirement accounts. Anyone seeking advice regarding retirement accounts should consult their own professional advisors to evaluate the risks, consequences, and suitability of that transaction. Acquiring additional lines of credit involves risk. Prior to acquiring additional lines of credit, the borrower should carefully consider whether a particular line of credit is appropriate for them, based upon their objectives, financial resources, and other relevant circumstances. Further, the borrower should closely evaluate the terms of the line of credit applying for; e.g., fees, interest rates, terms, obligations, etc. The borrower should consult their own accounting, legal, and tax advisors to evaluate the risks, consequences, and suitability of obtaining credit.

These survey results were compiled over a 12 month period, from the Company or an affiliated partner, and audited by a third party. Some students attend the training for education purposes only but were included in the satisfaction survey results. Some students attend the training and do not make money. Marketing services for Response Marketing Group, LLC, provided by EvTech Media. We provide educational products and training. We do not sell a business opportunity. Additionally, we do not offer any tax, accounting, financial or legal advice. Individual results will be determined by individual effort, experience, time spent and the ability to apply what has been learned. All surveys and student success audit results are updated quarterly.