17 Essential Tips for Successful Real Estate Negotiating


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17 Essential Tips for Successful Real Estate Negotiating By Tim Burrell

Getting Started 1. The market dictates the balance of negotiating power. Recognize your position and adjust your negotiating style to match the strength or weakness of it.

2. Determine if the negotiations are going to be collaborative (win-win) or competitive (win-lose) and use the proper negotiating style.

3. Make sure you understand the personality types of the other agent and their clients. This will help you decide how to best communicate with them effectively.

4. Identify areas where you think you will be able to come to agreement. Begin by aiming where you are going to end up. 5. Start negotiations at a level that will get a response, but leave room for future give and take. Your first position is important and will affect the final results.

6. Adapt your negotiation strategy in a multiple-offer situation. If representing the seller, get an auction going and choose the buyer most likely to close. If the buyer is your client, determine which items are most important to the seller and aim to give them everything they truly want. You will need to adjust your style based on the number of offers.

During the Negotiation 7. Keep hostile emotions in check. Be a shock absorber. Use positive emotions to support your proposal. 8. Do not accept the first offer unless there is an overwhelming reason. If you accept the first offer, they will feel they could have done better. Also, the first offer is rarely the final offer.

9. Develop a game plan. Identify issues likely to come up and a plan for solving them. Save something unimportant to your client that you can give away as a concession later.

10. When you receive a low offer, you need to determine the most effective way to respond. Will you be more likely to get a favorable response with a rejection or a courtesy counter-offer in the given situation?

11. Don’t give up easily. Try again and, if it isn’t working, walk away slowly. Don’t burn bridges in negotiation. Things change, sometimes unpredictably.

12. When it comes to negotiation on repairs, the market and your alternatives should guide you in how to proceed on the spectrum from “as is” to “fully repaired.”

Finishing Strong 13. Just before closing, nibble for one last victory. Your client will appreciate the extra effort. 14. Don’t give the other side what they want before getting what you want. Confirm all concessions ASAP. 15. Anticipate last minute issues that could arise just before closing. Preparation is essential. 16. Close gracefully. Rise above unimportant emotional disagreements. Don’t send that nasty email. 17. Congratulate everyone on the success of the transaction. People remember the last thing that happened in a negotiation. Tim Burrell is a North Carolina real estate broker and the author of Create a Great Deal: The Art of Real Estate Negotiation. If you need help developing your negotiation skills, or getting through a particularly challenging negotiation, visit www.NegotiatingConsultant.com to schedule a consultation with Tim.

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