In real estate transactions, there are many terms and conditions that can be negotiated. From the purchase price, closing date, inspection periods, escrow amounts and more, everyone wants to prevail with the terms they want. Both buyer and seller want to feel like they have the upper hand and get something from the other party, a win-lose mentality. In these negotiations, many times both parties walk away from the negotiations frustrated and feeling less than satisfied. Here are three ways you can keep it professional and wrap up negotiations with a win-win for both parties.
Know Your Facts
In the 1960’s television series “Dragnet,” Joe Friday was big on facts and you should be too. The success of any negotiation involves some give and take for both parties and knowing your facts will help you to get what you want out of the deal while making sure the other party is happy to. It is important to know facts like how long the property has been on the market for, what are the most recent comps, how fast are the comps selling, and if there have been any failed offers previously. Arming yourself with the facts will help to make sure you conclude negotiations on a win-win.
Knowing the Why
After arming yourself with the analytical facts of the deal you are negotiating, it is important to clearly understand "why” for everyone involved. Why is the buyer moving and what is it about this home that they simply love? Why is the seller selling the home? Is it an estate sale, are they moving, upsizing or downsizing, etc. These factors can help you know which points of the negotiations can be hot buttons and which one have some flexibility. You don’t want to find out the “why” once you have started negotiations as this leaves you at a disadvantage and sets you up for the dreaded win-lose or worse yet, the lose-lose.
Think Outside the Box
We’ve taken care of the facts and the why yet one party may feel like they are at a disadvantage still. It is imperative that every negotiation conclude with a win-win. This isn’t politics and both parties to a negotiation need to work together so each person feels good about the transaction. As real estate professionals, it is our job to think outside the box and remove the emotion from the negotiations so that everyone can win.
We have to be masters at getting creative and working out an impasse in negotiations so that the transaction can move forward and both parties get what they want. This isn’t always easy but when you go into the negotiation knowing the facts and everyone’s “why,” the chances of you coming out as the hero when things get tough is really good.
What Negotiations techniques have you used or what tips do you have to have a win-win when negotiating a deal? Join the conversation by posting your comments below!
If you are looking to buy or sell a home in the Orlando area, I would love the opportunity to earn your business. You can contact my office at 321-250-5222 or connect with me via the web at www.ConnectWithKevin.com.