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5 Real Estate Negotiation Tips

5 Real Estate Negotiation Tips Photo


Whether you’re selling fishes in the wet market or a furniture in a showroom, negotiation cannot be erased. This is a vital part of every business – big or small. For some, it can be as easy as basic origami but for others, negotiation sucks. Either way, there are certain do’s and dont’s that every business person should know.

When pertaining to real estate, these Do’s and Don’ts are at its highest level. Why? Simply because big money is at stake here and negotiation serves as the basis of the client’s final words. To ensure that you’ll succeed in this, here are a couple of tips to follow.

Tip #1: Don’t do the first talk

Just like in any negotiation process, you as a seller should not do the first talking. Let your client state his insights about your product. Let him state his budget frame. Through this, you can define the midpoint and can determine if you and your client’s budget can jive. You can also make an increase your rate if your client has a big budget without making him suspect anything.

Tip #2: Listen well

Aside from considering your client’s budget, you should also know all the sub-factors he is considering. Real estate has many points to consider and you should be aware of it. This is another tip to let everything be on your side without gaining suspicious thoughts from the other party. Listening to them can easily determine if he is talking about real business or is just fuzzin’ around.

Tip #3: Gain as much information as possible

The main idea of negotiation is not simply fixing the crumpled parts. Most people think that it’s all about money, budget and the like. In every negotiation process, the agenda should not be about finances only. You should also discuss all the underlying factors to ensure that there’s no hidden agenda. Ask all the essential questions needed and vise versa. This will help you know the main motive of the other party allowing you to adjust and succeed on your real estate issue.

Tip #4: Last concession is very important

Concession is something that the the other party gives. This can be about the terms and conditions, rate or any other similar issues. This can be obtained through the negotiation process. It is every important to get the last concession from the other party. It is somewhat like training him to do what you want without even making him feel it.

Tip #5: Create friction

Most people want to have a smooth flowing negotiation process. Reality-based, it should always have friction. After a smooth negotiation, a quick deal will come into the picture. What people would often feel after this successful deal is that they did a great job and the other party would technically feel the same. However because there’s less friction, both parties may want to back out of the deal. Both may think everything happened so fast and that they didn’t get the share they should.