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.

Just Wire the Money

Most of my clients like to have their funds wired to them upon the closing of their real estate transaction. They presume that this is the fastest and safest way to access these funds. Well, isn't it?

Wiring funds is easy right?  Sometimes it is and sometimes it is not.  Encouraging your clients to get the answer to that question early in the transaction may make the difference between closing on time or having to extend. 

When wiring, the process is entirely up to the financial institution where the funds are sent.  Some of the differences, just to name a few are:

   -  Some allow on-line wire initiation.

   -  Some require the request be in person in the branch.  This can be a big obstacle if the lending institution is in another state.

    -  Some require original notarized documents to request a wire.

    -  Some wire the same day the request is received.

    -  Some have a 48 hour delay from receipt of the request to when the funds are sent.

    -  International wire transfers can take 7-10 business days to post.

Each institution has their own requirements so it is prudent to confirm the wiring requirements of their individual financial institution early in the transaction so everyone can be prepared.

Happy investing!

Today's guest blog is courtesy of Sandy Andersen of Chicago Title Insurance Company of Washington.