Real Estate Negotiating 4 Steps To Success

Real Estate Negotiating 4 Steps To Success

Real Estate Negotiating - 4 Steps to​ Success
Let us never negotiate out of​ fear .​
But let us never fear to​ negotiate .​
(American 35th US President (1961-63), 1917-1963) Even the​ most famous recognize the​ need for​ the​ art of​ negotiation .​
To be able to​ make a​ good real estate deal, you must develop the​ art of​ good negotiation or​ find someone who can do the​ negotiating for​ you .​

The real secret of​ being a​ successful negotiator is​ to​ help both parties obtain their goals .​
To do this you must present your case in​ a​ businesslike way and​ close the​ transaction .​
This can be accomplished in​ 4 steps .​
1 .​
the​ first step in​ any negotiation is​ to​ know your goal .​
if​ you have someone else negotiating on your behalf, make sure they understand what your ultimate goal is​ .​
if​ your goal is​ to​ get the​ property at​ the​ lowest price, make sure you understand exactly what is​ involved to​ achieve that success.
Don't be afraid to​ reevaluate your goals .​
if​ during the​ negotiation process new details come to​ light that may allow you to​ obtain your goal by a​ different means, allow yourself the​ ability to​ explore the​ new details, don't get stuck in​ your negotiations by being to​ rigid .​

Once you are comfortable with your goals, and​ understand how far you are willing to​ go to​ obtain the​ property, you are ready to​ move to​ the​ next step .​
However, even when you are comfortable with your goals, you must be flexible .​
Remember there are two parties involved and​ the​ other party may present an​ option that could get you to​ your goal faster .​
In real estate there are several ways to​ achieve the​ same desire.
2 .​
There are two types of​ negotiations: Blind and​ Open.
In a​ blind negotiation you don't know anything about the​ other party .​
You do all the​ negotiation via an​ agent or​ third party and​ don't meet the​ sellers .​
Keep in​ mind you may be dealing only with the​ other parties agent and​ they have their clients interest at​ heart .​

In this type of​ negotiation your homework is​ very important .​
Know the​ property, know the​ market, and​ know values so you are able to​ negotiate the​ deal that is​ best for​ you, or​ be able to​ walk away .​
Blind negotiations can be handled, but they are a​ bit more time consuming.
Open negotiations are a​ bit easier, but require you do be good at​ your homework .​
In an​ open negotiation you may be working with the​ for​ sale by owner .​
In this way you have access to​ a​ bit more information .​

If during your negotiations you begin having problems on a​ particular point, such as​ price, do your homework .​
Find out why the​ other party is​ buying or​ selling .​
Knowing the​ other parties motivation can give you the​ upper hand .​
for​ instance, if​ you know the​ seller or​ buyer needs to​ move quickly, you will then have a​ bit more leverage to​ work with .​

What homework will help you in​ your negotiations?
a​ .​
Why does the​ other person want to​ buy or​ sell?
b .​
Who is​ the​ other person trying to​ impress?
c .​
Know the​ timing aspect of​ the​ transaction.
d .​
Verify the​ facts.
3 .​
In the​ art of​ negotiating, it​ is​ critical to​ get started on the​ right foot .​
Do not try to​ antagonize the​ other parties to​ the​ transaction .​
Be very neutral about the​ entire deal.
a​ .​
Don't praise or​ criticize the​ property.
b .​
Don't try too hard to​ buy or​ sell the​ property.
c .​
Don't criticize the​ other parties to​ the​ transaction, including any agents involved.
d .​
Explain motivation without disclosing too much information.
e .​
Meet all deadlines or​ better yet be ahead of​ the​ deadlines.
f .​
Do not lie, rather say nothing.
4 .​
Communication is​ the​ key to​ negotiation .​
However, too much talking can kill your negotiations .​
Make your offers in​ a​ written contract and​ let the​ other party do the​ same .​
Remember lose lips sink ships .​

When you begin talking to​ the​ other party you will give away too much of​ your motivation .​
You may think you can better obtain information from the​ other party about their motivation, but keep in​ mind it​ works both ways .​

Now that you've learned the​ 4 basic steps to​ negotiating you are ready to​ go out and​ get the​ property you desire .​
You must also keep in​ mind that not all negotiations turn into real estate deals .​
Don't be afraid to​ walk away from a​ deal that is​ not to​ your liking .​
Otherwise you may well find yourself making very bad deals and​ wasting your negotiation skills .​
Good luck and​ good negotiating.

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