- Real Estate
Some Tips for Real Estate Negotiations
Imagine that you are in your living room as potential buyers walk through your house. Suddenly you overhear one of them say how horrible your bedroom is decorated. You probably won't like it. But if you are selling your house, just let it slide off your back. Buying or selling a house is business.
Tip number one is don't let your emotions get wrapped up in the deal. Don't let the person across the negotiating table bother you emotionally and do your best not to do the same to them.
Tip number two is get a great, no nonsense agent. Find an agent who is going to work for you. Your agent should be determined and hard nosed. Likewise, your agent should never offend or be easily offended. Ask how they will market your house or find a house for you. Hire them only if they give you the right answers.
It pays to be skeptical. The only person you can trust to have your interests at heart is yourself. Agents and the other party will have their own interests first, just as you should. You all should try to make your interests coincide, but that will not always happen. An agent may want to make the quickest sale and work the least doing so.. You may want the best prices for your house even if it means waiting. Take everything someone tells you with a grain of salt. Tip three then is be skeptical.
Tip four is build trust. You should build trust in your negotiations. Your negotiating should be ethically above board and beyond criticism. Do not do anything underhanded. You can use psychological means and methods, and your opponent may do so too. You can easily counter a psychological attack by drawing attention to it. The strength of the attack will vanish and you have done so in a way that is sound and ethical. Maintain the high ground.
Sometimes you can be a little wacko or appear so. Do something to break the rhythm of the negotiations, and you may gain an advantage. Your opposite may just accept an offer that is a little crazy. So tip five is do something a little strange but not dishonest.
Tip six is be innocent. If you can convince your opposite that you are a babe in the woods, you may gain a deal point or two. Beware that you opponent may do the same. Don't be lulled into complacency by such behavior.
You will always benefit if you know why your opponent is doing something. So, how do you find out? Just ask. You may make assumptions about why somebody is doing something and they are not doing it for that reason at tall. There may be an easily resolved issue but you have to know what it is. You can also benefit sometimes by telling your opposite why you are doing something or want something. So, tip seven is always ask why if you do not know.
Tip eight is question authority. Have you ever noticed how kids almost automatically question authority? They almost always want to know how come. It is also a good idea to do so when negotiating real estate. When someone tells you they cannot do something, ask them why not. Rules are in fact made to be broken. Nothing is permanent, and do not let your opponent tell you it is.
These are just a few negotiating tips to get your started. It will pay you to study more and to read a book or two. It may mean thousands of dollars on a new home deal or a better deal on your next investment property.