Negotiating Real Estate Go Slow

Negotiating Real Estate Go Slow



Negotiating Real Estate - Go Slow
Why should you sometimes go slow when negotiating real estate deals? It's all about the​ power of​ time investment .​
Let me explain with a​ story.
One of​ my less-pleasant experiences selling real estate was when I​ sold a​ home for​ a​ real decent guy, and​ the​ buyer was a​ lawyer .​
I​ was new to​ real estate, and​ this lawyer knew all the​ angles .​
Without getting into all the​ dirty tricks he used, I'll just say that the​ buyer had everyone involved angry, frustrated and​ worn down .​
As a​ final blow, he arbitrarily decided that he wanted the​ price lowered by another $5,000 .​
Now that's hardball negotiating .​
The seller was almost ready to​ throw away the​ whole deal, but he had been trying to​ sell the​ home for​ two years, and​ we had been working with this buyer for​ months .​
None of​ the​ agents or​ brokers involved wanted to​ see all their effort go for​ nothing .​
There were three agents under two brokers involved in​ the​ sale .​
We all agreed that suing the​ buyer wasn't worth it .​
Instead, we gave in .​
The seller had enough of​ the​ buyers tricks, so each of​ the​ other five parties to​ the​ sale (3 agents, 2 brokers) agreed to​ each forfeit a​ $1,000 of​ the​ commission, just to​ make the​ deal close.
This is​ an​ extreme example of​ using time investment to​ your advantage .​
After investing so much time, none of​ us wanted to​ lose everything .​
The lawyer knew that, and​ used it .​
In this case, there was nothing in​ the​ contract that allowed him to​ renegotiate the​ price, making it​ unethical in​ my mind .​
Still, it​ was effective.
Negotiating Real Estate Deals - Ethically
In other cases, it​ is​ just good negotiating .​
If you want to​ get the​ best price on a​ car, do you think you'll get it​ after spending two minutes with a​ salesman? Let him invest two hours showing you cars, and​ he'll be begging the​ manager to​ let the​ car go for​ your low offer .​
The same is​ true with real estate negotiation.
Remind the​ seller about time, to​ let him remember the​ time he has already invested .​
To do this politely, say something like Look, neither of​ us wants to​ lose the​ time we've spent on this and​ start all over, so why don't I.. .​
Then offer some small concession.
He is​ subtly warned that he could lose his whole time investment with nothing to​ show for​ it .​
The words start all over may even scare him .​
You set the​ scene, and​ then you offer a​ way out .​
This is​ non-offensive too, if​ done right .​
You say Neither of​ us.. .​
to​ let them know you're both in​ the​ same situation, and​ it's not just you threatening them.
This is, of​ course just one technique of​ many for​ negotiating real estate deals .​
Take the​ time to​ learn several, at​ least.




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