How to Negotiate the Best Price for Your Home
If you're involved with real estate investing at all, or particularly if you are buying property in Florida, you'll need to gain knowledge of negotiation. On an initial level negotiation is when you converse or banter back and forth until familiar ground is attained. Rarely in this journey called life is there a circumstance that is perfect for all the people involved, thus conciliation is the way allowing the various parties, who are opposed on their agendas, to reach common ground and pull off an agreement. There are people new to negotiation and there areseasoned negotiators who have a wealth of know-how behind them; here are a few ideas concerning the art of negotiation when buying or selling real estate.
The initial thing to consider on is this, what is the most important thing you consider a deal breaker in your talks?
A seasoned negotiator is person who sees people and what they are attempting to achieve. They are able to look at the various points and know what the people involved are aiming to achieve; they'll want to be very focused on the facts of negotiation, but take to heart there are dreams and goals involved in the journey. When you are working with someone's home, you need to be very deliberate when explaining your position about what is expected, and to do so without getting emotional.
The point you want to reach is fairly obvious, you want to occupy your new home, you want to be able to close the home at the bottom dollar, and you want this to close within a fixed time frame.
Of course, you desire to study the prospective home with a veteran mentality and make certain you are getting exactly what you are expecting, meaning is the home in good condition, or are repairs needed?
Are there any legal or land issues with the home you're considering? This is something vitally important and you'll want to do your homework well before the first meeting with the seller. All these things need to be accomplished in a professional manner, without angry words or emotions distorting the issue; be friendly but firm. Your objective is to have a good, proper and legal deal, then move forward without having further issues to work through.
Of course everyone has a certain way that works for them, but after multiple deals we've found a a feeling of cooperation, of working to work through a problem works better than weilding a big stick or trying to seem domineering (you catch more flies with honey). The method is to walk forward toward the goal, taking care of or getting rid of difficulties as they arise, so both the buyer and seller feel good with the arrangement.
You may have heard (and it's good advice) to make certain that your understanding is written down, say it in ink so all parties involved know precisely what is expected and what the end objectives are.
What we are taking about is of course what is wanted, howevernot all people works or does a deal in that manner and often people are rather hard to deal or complete a deal with. This type of person, who can be of either sex, can seem against the contract in everyway, be emotional to the point of seeming to squash the plan. This is where striving to be a good negotiator (or obtaining the services of a good negotiator) may definetely work in your favor; since most people's reaction is to return emotions in kind and experience proves, that doesn't close the deal. If you act with emotions, you are simply playing into their hands, do not let your feelings to play into your thought process or negotiating style.
Listen to the words and meaning of what they have to say, even if they are talking in a difficult or emotional manner, make certain you do not answer in kind. If you have a firm price price you are aiming at, stand your ground while still being compassionate and be prepared to discuss that the money you're asking for the property was not pulled out of thin air, but was based on comparables. Remember to have a hard copy at the end of your discussions, whether successful or not, so all the people involved have an understanding of what particularpoints were reached and the ones which were not.
Decideing to sell a home can be an emotional journey as the seller might possess intense memories and feelings associated with the home that the new buyer does not understand or realize. Try to find out what can be changed and what is inscribed in granite, and then work on the points that might be worked on, and leave the more difficult ones till almost complete, or perhaps out of the negotiations completely.
Learn more about real estate negotiation and investing from Ron Rogers at http://www.realestatelistingsflorida.com/
Published August 6th, 2007
Filed in Business, Communication, Finance, Real Estate