Among the most difficult steps in any real estate process is the negotiation for a property’s final price. You need to be armed with the skills, the tact, and some research to be fully prepared for the task. Learn how to best present yourself at the negotiation table with these tips we have prepared for you.
Practice your delivery
The most fundamental aspect of negotiation is to practice your negotiation delivery. Make sure everything you want to say is written down, then practice it. Do this by yourself, as well as with friends, co-workers, and even strangers. You’ll get useful feedback for improvement, often for things that never crossed your mind. You’ll also learn to see other people’s points of view.
Stick to your bottom line
Sticking to your bottom line regarding what you will and will not accept in a deal is extremely important. Don’t cut a deal, particularly in an emotional moment. Sacrificing a lot of money just to make the deal also isn’t a good idea. You need to know when to leave a deal on the table. Making a bad deal can be far worse than just leaving one behind.
Do your research
You must know the essential features of the property being negotiated, as well as similar features of comparable properties in the area. You’ll need to effectively compare and contrast those features and present that information in a report that can be shared with the other party. You can also try “humanizing” the property with a narrative describing its most attractive features.
Understand the law
A good negotiator must be very aware of all outlawed discriminatory classes, including race, gender, sexual orientation, religion, and age. You do not want to be the focus of a discrimination lawsuit, even for just discussing one of the outlawed classes. Don’t discriminate and don’t discuss discrimination.
Listen to the other party
Assure the person you are negotiating with that you are genuinely listening to them. A simple way to affirm that is to restate what they have told you, including why they want the asking price. This is a good way to get cooperation from the person you are negotiating with instead of resistance or an attack.
Why does the other party want to negotiate the property in question? Do you know the whole story? Perhaps the most important reason has never been stated. Often, these are personal reasons like financial hardship, moving to take a new job, or getting married.
Offer quality “extras”
Use small “extras” or enticements to get the person you are negotiating with to move toward a deal. Offering something as simple as repainting all the rooms in a small apartment building or putting new blacktop on the tenant’s parking lot can bring a buyer faster toward the end goal of closing the deal. Just don’t offer too much for too little in return.
It takes a lot of practice in honing your skills to make your negotiating stance a solid one. If you feel that you will need some backup for this particular endeavor, then a real estate agent with the skills, smarts, and experience can be your best bet.
And if you’re either eyeing a property in Arizona or planning to sell one, let us be your partner in your real estate journey. We are Aeris House Properties, and we’ll make sure you can get the best deal out of your real estate transaction. Give us a call at 602-466-9771 or email us at Info@AerisHouse.com[/ai_phone]. We’d love to hear from you.