1) Don’t try the Arab trader approach. Many investors view negotiation for an expensive piece of real estate much as they would view buying an old lamp at the flea market. You make a ridiculous offer first, and your counterpart makes an even more ridiculous counter offer. Then, eventually, you meet in the middle at a fair price. Real Estate negotiations do not work like that. You should start off with a fair offer. The area for compromise is restricted to the range of fairness right from the beginning if both parties start there.2) Try on the other guy’s shoes. You should try to understand the priorities of the other guy. If you can find out what is most important to him, you know where to make concessions in order to get even better concessions in return. If your counterpart’s major concern is the move in date, giving up some ground in that area will encourage him to make major concessions in areas more important to you. You might view this as knowing your opponent, and that is not the wrong way to look at it.
3) Compromise is the key. The idea of win-win does not mean that each side is going to get everything they want. You have to give up something to get something. If you do not approach the negotiation with that concept firmly in your mindset, you are not going to have much success.
4) Meet under that old oak tree. A recent country and western song spoke of a couple who would meet in the middle between their two homes under an old oak tree. That is the key to successful compromise and eliminating little hitches in the negotiations. You should always be willing to just split the difference on the little things. When you pay half and he pays half, it is fair and things can proceed.
5) Don’t sweat the small stuff. Many negotiations get bogged down in minor details before the major issues are even broached. This is foolish. It is the major issues that are going to decide the success or failure of the negotiation. You can just leave the little details until last, and tackle the big ones. Once the big issues are settled, the little ones seem less urgent and are quickly settled.
Real Estate Negotiation is a fine art. It does not matter how good your investment strategy is or how profitable the Utah real estate market is for others. It does not matter if you are investing in a hot market like Provo real estate.
