Negotiating Real
Estate Deals - Aggressive vs. Assertive
Many
times I get asked by potential clients how aggressive I am in negotiating for
their interests in real estate transactions. I always have the same
answer, I try NOT to be aggressive, but rather assertive.
The
Difference between Assertive and AggressiveMy definition of
aggressive negotiation is
always 'winning' at
any cost. It's not really negotiation as such, it's more
using every tactic, avenue, and technique to get your way and burning any bridge
you need to at the time without consideration of the future.
Assertive negotiation may not always win every
point of contention or issue, but when the issue is resolved, it is something
that
both parties can live with.
The advantage of
assertive over aggressive techniques is that it is
not
the 'hard sell'. For example, let's say you have a
minor
inspection issue that you agressively negotiate for the buyers to the
point where, as the buyer's agent, you
make the seller bleed
every last dollar. Not only are the sellers going to be upset that they
got pushed so hard, but they will be looking for every opportunity to
repay the favor. An opportunity may easily arise
at the closing table, let's say a delay in funding from the lender thru no fault
of the buyer. The seller could technically declare a default and take the
earnest money as the seller may have no incentive left to keep the contract or
sell the house at the terms that were
aggressively
pursued by the buyer's agent.
Should this scenario happen,
the buyers didn't win, even though they got the last $10 from the sellers over
some minor inspection issue.
Keeping the ultimate negotiating
goal in mind
It is always important that the agent and client
keep their ultimate goal in mind when entering into any negotiations.
Winning at negotiation involves keeping the ultimate goal in mind, not trying to
win every point just for the sake of winning.