Negotiation Tip- Be A “Don’t-Wanter” of the Deal

By
Services for Real Estate Pros with Property Solutions, LLC

I’ve been involved in a lot of negotiations, and read a lot of books on the subject.  There is a basic principal of negotiation that is fundamental- that is- below the level of tactics and techniques.  In fact, it doesn’t apply to negotiations alone, but to almost every type of human interaction.  Here it is:

              Other things being equal, when you push or move towards someone, they will have an automatic (and many times unconscious) tendency to pull away.

This can easily be demonstrated with the concept of personal space.  The next time you’re speaking with someone, casually and slowly move closer to them.  100% of the time, they will move backwards.

When negotiating price or terms on real estate, if you are over-eager and pushing very hard to get the deal under contract, the Seller will sense this psychologically and begin thinking, either consciously or unconsciously, “I must be giving away the farm!  This person seems way to eager.”

Think about this from your own perspective- have you ever sold something, even a smaller personal item, had it immediately sell for 100% of your asking price, and found yourself questioning whether you let it go far too cheaply?

As strange as it sounds, if you make the Seller work for the agreed upon purchase price, even if it is his or her original asking price, they will be more psychologically satisfied with the transaction, and less likely to “shop your contract”, or back out later.  Many times, they will even be ultimately happier if you get them down on price a little, because they will then feel more certain that they have done a proper job of negotiating (especially us men, testosterone demands that we exit this arena victorious).

When you make the Seller “work” for the purchase price, you have given him or her a chance to “push”.

An attitude of courteous disinterest while inspecting the property will work wonders on the negotiations later to come.  Be polite, be pleasant, and do not beat up the house or talk it down.  That is a tactic used by the unskilled negotiator, and it often has the exact opposite of its intended effect. “Wow, this is awful!  You really used to live here?”

If you’re only looking at one deal, disinterest will not come easily.  When you’re working on several at a time, you know that this house will not make or break your short-term success in real estate.  The Seller can sense this objectivity, and your closing rate will increase along with your discount percentages.

 

Lou Gimbutis, owner of Property Solutions, LLC, www.SoldCarolina.com and www.123EscapeForeclosure.com, has been buying and selling houses full-time since 2004, first in Michigan, then after moving to NC in 2007.  He serves as Director of Education for the Metrolina Real Estate Investor’s Association.

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Rainer
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Rose Mary Justice
Synergy Realty Pros - Dandridge, TN
Synergy Realty Pros

You have made some valid points here.   

Oct 16, 2019 07:02 AM #1
Rainmaker
14,249
Lou Gimbutis
Property Solutions, LLC - Statesville, NC
Buying & Selling Houses Since 2004.

Thanks Rose Mary!

Oct 16, 2019 07:03 AM #2
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Mimi Foster
Falcon Property Solutions - Colorado Springs, CO
Voted Colorado Springs Best Realtor

I have said on numerous occasions that we should have to have a four year degree in psychology to be really good at this job. So much of what we do is know when to hold 'em, know when to fold 'em. Good post!

Oct 16, 2019 07:29 AM #3
Rainmaker
14,249
Lou Gimbutis
Property Solutions, LLC - Statesville, NC
Buying & Selling Houses Since 2004.

Thanks Mimi!  It's shocking how many times we talk ourselves out of deals (or yourselves out of listings) simply by not knowing when to stop talking!

Oct 16, 2019 07:31 AM #4
Rainmaker
3,393,697
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Hello Lou - a valuable lesson I learned a long time ago that is certainly applicable in real estate.  You can't want a "deal" more than the buyer or the seller.  If you do, you lose. 

Oct 16, 2019 08:53 AM #5
Rainmaker
797,028
Nick Vandekar, 610-203-4543
Long & Foster Real Estate Inc 610-225-7400 - Devon, PA
Tredyffrin Easttown Realtor, Philly Main Line

Good reminder for all of us involved in negotiations to remember, make the seller work to get their price. 

Oct 16, 2019 10:01 AM #8
Ambassador
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Alan May
Jameson Sotheby's International Realty - Evanston, IL
Helping you find your way home.

Lou - be very careful.  Getty Images is a strong protector of their copyrights, and they will find the image you've used, and send you a "payment demand" letter to avoid a lawsuit.

Their payment demand will be hundreds (if not thousands) of dollars for your use of their image, and they've got lots and lots of lawyers.

Be very careful.  If I were you, I'd delete that image post-haste.

Oct 16, 2019 10:27 AM #9
Rainmaker
14,249
Lou Gimbutis
Property Solutions, LLC - Statesville, NC
Buying & Selling Houses Since 2004.

Thanks Alan, will do. 

 

Oct 16, 2019 10:28 AM #10
Rainmaker
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Lou Gimbutis
Property Solutions, LLC - Statesville, NC
Buying & Selling Houses Since 2004.

You removed the wrong image!  I had already taken down the copywritten one and put up a different one.

Oct 18, 2019 06:07 AM #33
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Rainmaker
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Lou Gimbutis

Buying & Selling Houses Since 2004.
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