Negotiations in real-estate deals are all about compromising and agreeing in order to close a transaction. When negotiating, the negotiator should know the needs of the client. Legal knowledge is important since the negotiator should be able to identify the legal processes that could be done to achieve the client’s needs. Negotiators are usually real-estate lawyers, although real-estate agents would also negotiate for their clients.
To get successful negotiation results, it is 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 of 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 CMA, the condition, size, number of rooms of both houses would be compared.
After being informed, then you would have to prepare for the negotiation. 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 different real-estate negotiation tips that would make both the buyer and seller satisfied.
In real estate negotiations, it is a compromise that would work and enable both parties to close the deal. 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.
Bill Manassero is the founder/top dog at “The Old Dawg’s REI Network,” a blog, newsletter, and podcast for seniors and retirees, that teaches the art of real estate investing. His personal real estate investing goal, which will be chronicled at olddawgsreinetwork.com, is to own/control 1,000 units/doors in the next 6 years. Prior to that, Bill and his family lived in Haiti for 11 years as missionaries serving orphaned, abandoned and at-risk children.