Tips To A Successful Real-Estate Negotiation

Negotiations in real-estate deals is all about compromising and agreeing in order to close a transaction.  When negotiating, the negotiator should always know the needs of the client.  Legal knowledge is important, since the negotiator needs to be able to identify the legal processes that most likely will have to be navigated to achieve optimum results for the client.  Negotiators are usually real-estate lawyers, although real-estate agents can also negotiate for their clients.

To obtain successful negotiation results, it’s important to be informed, prepared and set realistic goals or objectives.  If you are a buyer and you have come across a house you are willing to buy, then you would have to be properly informed on how much the property would cost.  You could ask your agent to compare it similar properties which are already sold.  This is called Comparable Market Analyses or CMA.   In a CMA report, the condition, size, number of rooms of all houses deemed pertinent would be compared.

After gathering the relative information, you can make preparations to begin negotiations.  You could start by setting a realistic amount of money you are willing to spend on the property.  When making decisions about buying or selling a home, never let your emotions get ahead of you.  Follow and execute the plan.

There are several different real-estate negotiation tips or tactics that will make both the buyer and seller satisfied.  This is called a win-win situation and one you should strive for. Both parties could start with the points that they both agree on and deal with the differences later.  Sharing a common ground makes it easier for both parties to come up with win-win solutions.

• You start with a price offer that you know that they would not be able to refuse and not a quote that would make them angry or rolling in laughter.  When presenting the offer, make sure that you or the negotiator would state what and how both parties would benefit from the deal.  This makes it harder for them to say no to some of your lesser but important to you demands.

• It is normal that the opposite party would ask questions and state their expectations, be confident when answering.  Be cool and calm, even if the arguments are pushing you to your wit’s end.  Present the answers in a way that would help them see that they have a way of getting out of the deal.

• You should never say or show how desperate you are to purchase the property.  If you would like to convince the other party to give-in, don’t overreact when an offer is presented, rather keep a cool head and an even temperament. Also, bluffing is not a tactic you want to engage in.  Be straightforward with your win-win solution and be prepared to counter their arguments.  Look for loopholes and weaknesses which would help turn the table around.

• Be realistic.  Set your goals and objectives up front and don’t change them because the negotiations are going well. Be happy you bought or sold for “your price” and don’t try to wring every last dollar out of the negotiation. Remember win/win.

• When starting the negotiations, it is better to correspond with written documents.  Oral commitments cannot stand or are not duly recognized as a binding agreement by some states.

• When negotiating, do not fret over small details.  Many times negotiations are called off because of small issues that could easily be dealt with, if they had waited until the end.  If the negotiation does not work out, then major points should be credited with the failure.

In real estate negotiations, it is compromise and understanding that ultimately work and enable both parties to close the deal, satisfied.  Both parties have to feel they won for it to be a successful negotiation.

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