Many people that aren’t familiar with real estate are intimidated and are strung along the buying and selling process without taking the time to really hammer out the details to leverage a win win situation among all parties involved. If you understand everyone’s goals you can tailor your negotiating to create opportunities and benefits. Not only does this demonstrate business knowledge but it also makes it a point that you mean business, and that you aren’t another customer being strung through the basic purchasing process.
Planning is Paramout!
Your knowledge alone give you more buying and selling power. Go into the deal with a plan, and focus the attention on that goal to reach your desired outcome. When dealing with a middle man you must effectively communicate your goal to that individual so everyone is on the same page moving in the same direction with little distraction. If you aren’t clear on your goal, it can cause a rift, and trust may be lost making it difficult to get the support you need.
Don’t Shoot Yourself in the Foot!
Some people have goals that may be unrealistic, creating sticker shock. This is bad, you don’t want people to have their guard up, and you won’t be able to reach your goal, so be sure you can reevaluate your goals. You may have to sacrifice a little for all to benefit. Flexibility is key to reaching your goal as well. A little risk may be involved to move forward to the next step of buying or selling, so be ready to have an open mind and adopt the vision of others so you can all achieve a successful transaction.
Negotiation Methods
The two most common negotiation methods are blind and open. Blind negotiations involve parties not being aware of each other’s position. There is not a third party available so blind negotiations require you to do all the research and background of the owners, and the property itself. Be sure to have the other parties best interested placed ahead of your so you can gauge how you will need to reconsider your original goal.
Open negotiations are more favorable but you still need to identify the history of the owner and property. Normally, you would interface with the owner and you will have an easier time accessing the information you need.
A common problem with negotiating always boils down to the price. There is a magic number that all parties can agree on but understanding their reasons for the price can be revealed if you stay away from the blame game. Again, the more information you acquire the better armed you are to negotiate.
Do Your Homework
If you aren’t fully aware of the history and background they will walk all over you and you might end up with buyer’s remorse. The key piece to this tangled transaction is becoming familiar with the property and doing your homework. Without this knowledge you might even get a high five from the real estate agent because you just made their job easy, when you could have saved thousands of dollars. Be open minded and understanding when you are fully aware of their goals. Make sure your goals are realistic and you show expertise by doing your homework and the negotiations will be successful and you WILL sell your house.