Monday, September 14, 2015

Real Estate Negotiation

A successful negotiation is considered to be a win-win for all involved. A win-win negotiation is a deal that satisfies both sides. In order to achieve a win-win, the following guidelines are helpful:

Some Do's in Negotiating:

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

·         Anticipate the desires of your opponent. Think collegially – 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, the corollaries.

·         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 what you want – be specific about what you want and don’t want.

Happy Investing!

Today's blog courtesy of Bernita McKinnion.

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