One of the key aspects of the real estate transaction that is often overlooked is the negotiating process. Whether you are buying or selling your approach to the negotiating process has a tremendous effect on the end result.
The art of negotiating is won and lost before you sit down to the bargaining table.
1. Know the market
It is very important to do your homework and know what is going on in the market you are trying to buy or sell. Since real estate prices are so specific to various blocks and neighborhoods successfully negotiating a good deal starts with thorough research and being prepared.
2. Set Limits
Before you start negotiating, define your limits. Know what you are willing to give up in order to get what you want. Setting limits means establishing the point at which you are willing to walk away from the negotiation process to pursue an alternative course.
3. Emotions
It is hard to separate your emotions of ‘wanting your dream home' or ‘selling the home with all you lasting memories', but the person who can separate their emotions as much as possible will have a better result when it comes time to negotiate. Taking some time to think and reflect about offers and counteroffers can be very beneficial to keeping your eye on the prize while keeping your emotions at a distance.
4. Listening
Good listening skills is a crucial characteristics of negotiating that is often overlooked. Before you begin to negotiate, try to find out the motivation of the other party. Sometimes a flexible closing date can be more important then money. Having this information can help you formulate a stronger offer going in. Also, while the negotiations are ongoing, it is important to continue to listen to what the other party is telling you.
5. Focus on win-win instead of winner take all
Entering the negotiating process with a friendly demeanor sets the right tone from the beginning. A friendly demeanor does not mean to agree, rather it is about building mutual respect, building a sense of fairness. Your ultimate goal should be to create a win-win situation for all parties. A win or take all approach often doesn't end well.
I am a licensed REALTOR working in the Chicagoland area. I have a tremendous appreciation for real estate that goes beyond just helping my clients buy and sell.
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