Real estate transactions are full of negotiations. You’ll negotiate a price and the terms of the deal. You’ll negotiate what you’re willing to do to the Danville property before the sale closes and you’ll negotiate fees and costs with the professionals who help you manage your real estate acquisitions and sales.
When you’re negotiating, be prepared and strategic. We love this part of the process, and today we’re sharing five of our favorite negotiation strategies when it comes to getting the best real estate deal.
Do Your Research before you Meet
Information is absolutely crucial when you’re negotiating a real estate deal. Make sure you know everything you possibly can about the situation, the property, and the history of the person or the people you’re meeting with. When you know more about them than they know about you – the better outcome will almost certainly land on your side of the negotiating table.
Information and knowledge will help you solve a problem for the other side. When you’re able to do that, you can get what you want with a lot more ease. Perhaps you’re negotiating with a buyer who is about to close the sale on their own home and will have to move into temporary housing if they can’t close quickly on the purchase of your property. When you an offer an immediate closing date, you might get them to offer you a little more. You’ll have to know this ahead of time to really maximize your position, however, so do your research.
Stop Talking and Listen
It’s a good idea to let the other party talk first. You’ll be armed with a lot of extra information about what they need and want – and why. Also, you never know what you’re going to hear. You might expect the other party to completely lowball an offer, but then you’ll be surprised to hear something different. Always let the other side open the negotiation. And, give them plenty of time to talk. Don’t interrupt and don’t try to make any of your own points. Listen, and then wait for a little while before you respond. This will tip the balance of power onto your side without you having to do anything at all.
Ask for What you Want
Inexperienced negotiators will wait for the other side to magically offer what they want. This rarely works. Don’t be afraid to clearly and expressly state what you’re looking for in this deal. If they push back, you can argue your case and try to find a middle ground. But, you have to be willing to put it out there; otherwise you’ll end up disappointed.
Leave Your Emotions at Home
Negotiating should never be seen as something that can be won or lost. You’re trying to get the best possible deal for yourself, and that’s what the other side is doing as well. Don’t feel emotionally attached to the outcome; otherwise you’re unlikely to feel satisfied with how it goes. You will want some concessions, so you’ll need to be willing to give some. If you arrive with your emotional self instead of your business self, you’re going to make some bad choices, say the wrong things, and potentially find yourself upset. Leave your emotions – and your ego – at home.
Walk Away if You Need To
You are rarely obligated to accept terms and prices that don’t work for you. If you aren’t getting anywhere and you’re running up against another party that’s rude, stubborn, and trying to bully their way into transforming the deal into something one-sided, you can go ahead and call it quits. Either they’ll come back with more favorable options or you can start over. Don’t waste time. Measure the situation and the other party quickly and don’t put yourself through a meeting that’s less of a negotiation and more a list of demands.
These are the five tips we always use when negotiating real estate deals for ourselves and our clients. If you’d like to hear more, please contact us at Stowers Real Estate. We look forward to hearing from you.