How to Master Negotiations in Real Estate

Posted by Tom Crimmins Realty, Ltd. on Sunday, October 18th, 2015 at 2:14pm.

In typical real estate transactions, the terms of purchase and other factors may be negotiated at different times throughout the process. For example, the contract may be negotiated at the time the original offer is made, but revisions to the contract may be negotiated after the property inspection has been completed.

Research All Factors

Researching includes everything from market conditions and how long the property has been on the market to how competitively priced the real estate is, how many other buyers there are and more. A successful negotiation may be about achieving specific, desired goals, but in most cases, there will be a bit of give and take on both parties' parts in order to find success. 

Understand All Motives And Influences

There typically are personal motives and influences that must be considered. For example, a seller may be motivated to sell quickly due to a job offer in another city, or a buyer may be motivated because the property is the only one of its kind. Real estate agents can often provide information about motives and influences that may impact the negotiations and that may reveal who has the upper hand in negotiations.

Consider Alternative Creative Solutions

After all factors have been researched and itemized, it may appear that one side has a clear upper hand in negotiations and the other does not. However, in order to be successful in negotiations, typically both parties will need to feel as though they are getting what they want. After all parties' motivations have been identified, it may be possible to think of creative, outside-the-box alternatives that may be agreeable to both parties.

When a buyer or a seller is preparing to negotiate, it is important that they fully understand all of the factors that may be at play in determining the outcome of negotiations. When buyers and sellers focus on these points before making an offer or counteroffer, they may find their negotiation efforts more successful.

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