Wednesday, June 17, 2015

Real Estate Negotiation

A win-win negotiation is a deal that satisfies both sides. It is the best way to approach negotiating a real estate transaction.

Some Do's in Negotiating:

· Determine goals. Decide on your objectives. Know your bottom line.

· Anticipate the desires of your opponent. Think collegial – envision the person as your partner in the deal.

· Analyze the assets. What do both of you bring to the table?

· Evaluate options. That means for both of you.

· Assess the power you bring into the discussion, and that of the other person.

· Anticipate the obvious consequences.

· Pay attention to detail. Try to put the other person’s needs first. In that way, the person feels as though you’re listening. Show empathy to the other person’s concerns and problems.

· Stay calm, no matter what. You’ll keep the emotional advantage. Focus on issues, not personalities.

Some Don'ts in Negotiating

· Don’t signal the person that you’re done negotiating by using the phrase, “I think we’re close.” You’ll be giving away your power – the person will believe you’re exhausted and that you put a higher priority on getting an agreement instead of achieving your actual goals.

- Don’t get into a bidding war. Brand yourself so that you’re the only party the person should deal with.

- Don’t negotiate against yourself. If you make an offer, wait for the response. Be careful in using the phrase, “Why don’t you throw out a number?” Usually, the first amount mentioned by a seller is the amount that’s ultimately agreed upon.

· Don’t establish at the beginning that you’re the final decision-maker. If you need time to think you'll get more wiggle room if you indicate there’s another person with whom you must speak. Always defer to a higher power.

· Don’t be afraid to ask for what you want – be specific about what you want and don’t want.

Use these techniques, and get the best possible outcome for both buyer and seller!

Happy investing!

Thanks to Bernita McKinnion for her help in compiling this blog post.

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