A successful negotiation concerning a real estate transaction entails knowing the basic negotiation techniques, the motives of the other party and adapting to their
The key to a good negotiation is being able to communicate your message clearly and effectively to the buyer. Developing a professional attitude without being too emotional about selling your property is as important. If you don't agree to the buyer's purchase price, engage him or her in negotiations. Ask for an explanation about his offered buying price if it's less than your selling price. Did he or his agent checked the prices of comparable homes or did they find any defect in your property?
After considering the buyer's position, you can then decide to lower a little your selling price. Be able to explain how you came up with your price as well. Make sure your calculations and figures are correct so that by the time you negotiate, you are in a strong position. Consulting with a financial advisor is a good step.
Learn about your home's true market value. You can do this by hiring a professional appraiser with the proper license and experience to assess your home and give you a real market value. Another option is to ask real estate agents about listing your home for sale. They usually provide a comparative market analysis showing you the selling prices of similar homes in your neighborhood that recently sold.
Also, be open in discussing property defects. Do allow a home inspection if the buyer so desires. If the inspection reveals defects other than what you know, you can lower your price by a portion of the repair cost. But of course, you can always avoid this by maintaining the good condition of your home so potential buyers will not have any reason to offer a low purchase price. Repair obvious defects in your home before putting it on the market. Repaint walls, ceilings, doors if needed, thoroughly clean your home and remove all clutter and organize your appliances and accessories to create more space.
Be prepared to offer a good deal so that prospective buyers won't need to ask for some major changes in the purchase agreement. You may only have to negotiate on some minor issues like the amount of deposit, the date for your moving out and the buyer's moving in as well as the personal items included in the sale. Make the buyer feel that he is not spending so much for the house. Once you achieve this, the transaction will most likely have its closing on time.
Finally, negotiate only with potential buyers who have been pre-qualified for a mortgage loan. Don't waste your time entertaining buyers who are not serious with their offer. You can ask prospective buyers over the phone if they are pre-qualified. Don't be afraid to ask those who are visiting your house too. There's never any harm in asking.
Useful skills for negotiation are strategies and techniques to overcome your nerves, perhaps through public speaking classes or a professional club such as the Toastmasters. Along with overcoming your nerves the reader will find useful information on how to develop presentation skills, how builds a positive impression, and suggestions on how best to practices these skills. Listening in order to be able to meet the needs of the other person is also covered; strategies on how to hold another person's attentions; how to avoid giving a false impression; how to ask questions so the other person will answer and continue with negotiations; the importance and how to make a positive connection with the other person; the role of humor; the role and importance of body language; how impact cultural background and upbringing play on negotiations; how to check your own body's signals; how to develop empathy, patience, and persistence are also covered in the first chapter.
The next chapter looks at how to use pauses and silence in the process of negotiation. The author details the strategies which will the reader can practice and implement in order to be successful in using pauses and silence the negotiation process. This chapter also discusses ways to say "no" without damaging the process.
Chapter three addresses strategies on how to guard and protect your reputation as a negotiator; how other may perceive your negotiation style; way to treat the other person with respect; the importance of telling stories and how they can backfire; suggested tactics; how to avoid the blame game; the importance of knowing the value of each point to each party involved in the negotiation process; what are the important elements of a successful negotiation; how to reassure the other person; and the importance of keeping records of the negotiation agreements.
The following chapter is dedicated to how to deal with aggression; how to avoid their attitude affecting your response; the possible reasons for a forceful approach; how to identify their real motivation and what to do; how to handle the offer of "splitting the difference" to benefit you; how to ensure a win-win agreement; and the importance of focusing on the benefits and features above the price; how to handle indecisiveness; the importance of painting a picture for the other party; what are the elements of a standard practice in negotiations; what it means and how to handle "subject to outside approval; and the importance of timing.
The next section focuses on the tactic of "good cop and bad cop" and how this can be beneficial in the negotiation process; how to handle last minute additions to the agreement; and a list of other tactics.
The following section provides detailed steps on: what to do before the negotiations begin; steps for proper preparation and it importance. The author provides a list of things you need to know before hand: your figures, your options, your desired outcomes and as much as possible about the other party. The author points out common errors and how they impact the negotiation process; the importance of knowing who has authority to make the deal. There is a list of things you need to find out about the other party such as how important is the deal to them; are they under pressure to get results; is the pressure do to time and/or financial constrains; and are there other strong prospects. There are steps for preparation: plan exactly how you will present your offer; how to identify possible responses for the other party; how to identify other points which you don't want the other party to bring up and how to handle it if they do; make a list of possible concessions or bonuses; and make a list of all the things you need to get from the deal.
The next chapter looks at how to deal and identify your prime objective and fallback options. There is a discussion on the importance of having the option to say no to the deal/negotiation process; how your physical health will impact the negotiation process; tips on handling stress and traveling; and how to gauge the value of an item. There are six points to determining the value of an item: what was paid for it; what it cost to make; the value of its components; the replacement costs; the benefit to the buyers; and the value after one year.
