Here’s what you need to know about real estate negotiations.
I’m excited to discuss a subject that separates the good real estate agents from the bad. No matter what type of transaction you’re involved in, it will likely head to negotiation.
When you think of negotiation, you might think of haggling with a used car salesman over price, but that’s not what it’s like in real estate. My definition is this: Negotiation is using all information available to you to get as close as possible to what you want.
There are two main mindsets when negotiating. There’s something called win-lose negotiation, where one side has to completely lose for you to feel like you won. Then there are win-win negotiations. This usually takes the form of a compromise. In this scenario, you may not get everything you want, but your most important items will be taken care of. I always recommend heading into a negotiation with a win-win mindset.
I’d like to briefly go over some tips on how you can be the best negotiator possible:
1. Surround yourself with experts. Hire the best real estate agent you can. When you hit a snag (and you will), having experts ready to help will make negotiating smoother.
2. Gather all the facts. Information is power in negotiations. If you present the other side with facts that help your case, you can position yourself to get a better deal.
3. Be patient. Negotiation can get emotional, but it’s important you don’t fly off the handle. Usually, patience is a good way to get what you want.
4. Be prepared to walk away. If you can’t get items that are crucial to your wants, don’t be afraid to leave the table. This has the added benefit of pressuring the other side to concede on key points.
5. Make logical decisions. This one is tied to number three. Making negotiation decisions based on emotions is a good way to ruin a deal. Make sure you think things through before you act.
These are my main tips for negotiating in real estate. Of course, hiring a great agent is the most important thing you can do. If you are looking to buy or sell a home, or if you want to talk about today’s topic, please reach out to me via phone or email. I am always willing to talk.