How to Become a Better Real Estate Negotiator (3)

Part 3 of 3

Real estate successful negotiations
This is the third and last article in a series of blog posts on how to improve your real estate negotiations skills. The previously two articles covered the four basic negotiator personality types and the most important steps to take for a successful negotiation process. In this final post we will present the most important real estate negotiation tactics.

It is every negotiator's dream to be able to place themselves in a position of power during negotiations and it is no different in real estate negotiations. But it would be a great mistake to try to do that through manipulation or deception. The best path toward successful negotiations is based on sincerity and trust.

Make sure that you are able to recognize a bad deal and know when it is time to walk out of it. Allow yourself an easy exit at all times but make sure you leave in good terms. This way you can still make a move later on if circumstances change.

Share information - people tend to follow reciprocity, responding in kind to how we treat them. If we want to be trusted, we must first offer it. Revealing some information, even when it’s unrelated to the negotiation, increases the outcome. Don’t have to put all of your cards on the table, of course, just put something of yourself out there like your hobbies, interesting stories, etc and set a positive tone that’s conducive to gaining agreement.

Make the first offer - this might defy conventional wisdom but it is best to extract as much as possible from the other person before tipping our own hand. We are usually reluctant to go first because we are afraid may be way off and disengage the other party, but research showed that most people make first offers that aren't aggressive enough. In real estate, a high-priced home makes us look at all the desirable qualities, while a below-market offering brings up a bad location or needed repairs.

Counter-offer but don't do it too low - people are most satisfied on both fronts if there was some back and forth. Don't take the first offer, even if it meets your needs. Go back and ask for concessions so you can ensure that you got the best deal. Many people go too low, too quickly on their counter-offer, especially if they didn't make the first offer. Let the other person know that their offer is way off by saying something like "you may be trying to test my thinking with that first offer, but here’s more of what I had in mind."

You can get closer to finalizing a successful real estate negotiation by taking small steps. Help your counterpart say yes on smaller aspects and that will help you pave the path toward the final agreement. How do you accomplish that? Adapt your strategies and tactics to each negotiation effort and make sure you ask questions that can easily generate a small "yes." But always look for the signs showing the negotiation is over. Make the close right there, don't keep going on or you risk of jeopardizing the whole effort.

If you want to read and learn more about real estate negotiations, check out these useful resources:

How to Negotiate: 7 Real Estate Negotiation Tips
Master The Art Of Negotiation
7 biggest home price negotiation blunders

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