If you are involved with real estate investing at all, or are considering Real Estate Listings Florida, you’ll have to become skilled at how to negotiate. On a basic front negotiation is when you talk or banter between parties until common ground is attained. Hardly ever in sojurn is there a situation that is perfect for all parties, thus negotiation is the process that allows two parties, who are separated on their agendas, to come together and attain an agreement. There are people not familiar with negotiation and there areexperienced negotiators who have years of know-how in their back pocket; here are some thoughts regarding the art of negotiation when buying or selling real estate.
The first point to consider on is the following, what is the primary thing you consider a deal breaker in your negotiations?
A seasoned negotiator is someone who understands the parties involved and what they are trying to achieve. They are able to look at the problem and understand what both parties are aiming to accomplish; they should learn to be very tuned in on the point of the common ground, but realize there are personalities mixed in the journey. When involved with real estate, you need to be very deliberate in making your point about expectations, and to do so without getting emotional.
The point you want to reach is pretty clear, you want to buy your new home, you want to be able to buy the property at the bottom dollar, and you need all this to occur within a fixed period of time.
Obviously, you need to look at the prospective home with a veteran eye and make certain you are getting exactly what you are paying for and negotiating for, meaning is the property in good shape, or will money have to be spent?
Are there any title or survey issues with the home you’re considering? This is something vitally important and you’ll must do your planning far in advance of any initial appointment with the seller. All these items need to be accomplished with professionalism, without heated words or emotions distorting the the facts; be friendly but stand your ground. Your objective is to have a good, proper and legal closing, then move forward without having more problems to work through.
Of course one person has a certain way that works for them, but overtime we’ve discovered a spirit of mutual cooperation, of striving to solve a difficulty works much better than carrying a big stick or attempting to appear domineering (you catch more flies with honey). The plan is to work in the direction of the goal, or getting rid of difficulties as they come up, so both the buyer and seller feel good with the results.
You may realize (and it’s sound advice) to make sure that your terms are transcribed, say it in ink so everyone involved know precisely their obligations and what the end objectives are.
The above is definetely what is wanted, howevernot all people works or does a deal in the way we’ve discussed and sometimes parties are very hard to deal or complete a deal with. This type of individual, who can be a man or woman, can appear against the contract in general, be emotional to the point of wanting to squash the plan. This is where being a top flite negotiator (or obtaining the services of a good negotiator) may definetely pay off; since most people’s reaction is to respond in kind and quite frankly, that does not close the deal. If you act emotionally, you are simply giving them the upper hand, do not let emotions to play into your thought process or negotiating style.
Listen to true intent of what they are talking about, even if they are responding in a difficult or emotional manner, make certain you do not answer in the same way. If you have a firm price you are aiming toward, stand your ground while still being understanding and be ready to explain that the money you’re asking for the property was not pulled out of thin air, but is based on other homes in the area. Be certain to have a hard copy at the completion of your discussions, whether successful or not, so everyone have an understanding of what terms were reached and those which weren’t.
Buying or selling a home can be an emotional journey as those selling the property may possess intense memories and emotions associated with the house that the future buyer does not realize or understand. Try to discover what can be changed and what is written in stone, and then work on the points that can be changed, leaving the others till near the end, or perhaps out of the negotiations completely.
Learn more about real estate negotiation and investing from Ron Rogers at Real Estate Listings Florida
- Ron Rogers
This entry was posted on Sunday, January 31st, 2010 at 5:34 pm and is filed under Finance, Real Estate. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.
