Most people look forward to a negotiation like they look forward to a root canal. Of course, there’s also that rare breed that relishes trading in their car just so they can spend a few hours beating up on the dealer. No matter which category you fall into, on thing is for sure: negotiations are a part of almost every real estate transaction. And how they’re handled goes a long way toward determining the success of a deal.
Here are five keys I followed in completing many successful negotiations:
1. Before a negotiation begins, try to find out the motivation of each party. It’s not always price. A flexible closing date could be just as important. This will help you formulate a strong offer going in.
2. Keep the negotiations away from an “us” versus “them” mentality. The goal is truly to create a win-win.
3. Keep negotiations alive even if “offers” and “counteroffers” drag on over a long time. Many deals come back from the brink.
4. Don’t forget the intangibles of a successful negotiation. For example, if buyers find themselves in a multiple offer situation, humanize it by writing a letter to the seller about how much you love their home.
5. People often say “Don’t get emotional”. That’s nonsense. How can the average person can not get emotional when negotiating a transaction as important as a home? Fortunately, the most emotional client can look like a cool customer behind the right agent. Share your feelings with your agent so you can refocus on the task at hand. In the end, you usually wind up with what’s important to you.
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