The following are 5 real estate negotiation tips to help you think more laterally in your negotiations and achieve better outcomes.
Have you ever negotiated like this?
– Car salesman: “The price is K10,000”
– You: “I’m willing to pay K5,000”
– Car salesman “I can give you a small discount, how about K8,500”
– You: “What about K6,500”
– Car salesman “Ok, I spoke to my manager K7,500 is our final offer”
– You: “Done. I’ll take it”
In the above example the you and the car salesman start with a K5,000 gap and eventually ‘meet in the middle’. This is the most common form of negotiation and is known as ‘positional bargaining’.
Unfortunately positional bargaining generally results in poor outcomes for both parties because everyone gives up the same amount, so neither party gets what they really want. Thankfully there are other ways to negotiate!
The following are 5 real estate negotiation tips to help you think more laterally in your negotiations and achieve better outcomes. After all, why meet in the middle if both parties can achieve their goals?
1. Consider the objectives of all of the parties
As a property buyer, the most important person in the transaction is the seller and you should focus on their desires first. Do some research with the agent and find out what is really motivating them to sell. Especially focus on non-monetary considerations. You would be surprised how often the sale of a home or other property turns on something other than money.
– The seller needs to move from Port Moresby back to another country urgently notice: Perhaps offer shortened settlement terms, for example 30 days. Or offer to pay a 50% deposit immediately and the balance in a longer period.
– The seller is building a new home to move into: Offer to rent the seller the property after the purchase on a month-to-month basis until their new home is complete.
– The wife of the seller is reluctant to sell the family home: Offer to have a professional photographer to come in and take portraits of the family in the home before they move out. This will give the wife some comfort as she then has a permanent memento of the home
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