Control Your Every Deal:Succeed in Your Real Estate Negotiating with these 7 Sure-Fire Tips

In real estate, negotiation is more like art than science. Some might also consider it to be like a dance because both parties go back and forth with each other... with hopes of bringing both of them to something better, with each person achieving win-win results.

Then there are those who view negotiation as more of a battle with an opponent. But, in my experience this viewpoint really doesn’t set you up for successful negotiating. So, how about, instead of viewing your negotiating as a battle, always look at it as a process that can be beneficial to both sides. Think of it like this: when you take advantage of someone, you may have won the battle but you will most likely lose the war.

Negotiating can definitely be an opportunity to win... for both parties. Follow these sure-fire negotiating tips and you will successfully control your real estate (or other business) deals every time.

Have a firm price & stick to it
Make sure you enter into every single negotiation with a firm price set in your mind. Then, work the negotiation so the person you are negotiating with is the one who first speaks about price. And, be sure you remember... your maximum allowable offer is your "strike price" and you should always start at 10% less than that.

Think: what’s in it for the other person
If you go into your negotiation with the mindset of... what does the other person need from this transaction, you can exceed their expectations and do well for yourself. Take for example, a student who was dealing with an elderly owner of a small multi-unit property where the owner also lived. The student asked if the seller might consider staying on in a transitional period to help him manage things. The seller needed this and therefore was happy to sell to him for less money.

Listen 70%, talk 30% of the time
You really can't learn too much while you are talking. So, be sure to listen carefully. Check out this negotiation example where the buyer listened to the seller when he said he wanted to stay in the apartment he had owned for 20 years. The buyer said he could stay AND he would pay him to help him manage the property. End result... $100,000 in instant equity, low seller financing and a P&S done in 2 days. The listen/talk tip paid off for both parties!

Always ask questions
You must ask probing and prying types of questions. This helps you gather a lot of information, which gets you prepared for any and everything that might come your way in the negotiation. As a matter of fact, it is imperative that you never enter into a negotiation unprepared. Another good reason to ask questions is so you can get the other person to really start talking to you. You obviously benefit, but the other person also becomes more comfortable with you. That is a win-win right there.

Have options open and available
It is beneficial to you to always have some open and available options in your pocket. For example, if you think it's possible that seller financing could be a tax advantage to the seller, ask. That could be the way to get you successfully into this particular deal.

Seek to Educate not confront
No matter what the issue is that you are dealing with during the negotiation, try not to appear confrontational. Rather, seek a more educational approach to discussing the issue. For example, if you are working with a bank for funding and your debt coverage ratio is off and the bank won’t fund the project, rather than arguing the point to try to convince the banker, try putting together some better numbers that bank would favorably consider, or better yet try talking through different numbers directly with the banker.

Trade Concessions, don’t give them away
If the other party in your negotiation asks for something that you can accommodate, provide it. But at the same time, ask for something from them. This will train the other party that every concession has a concession.

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