Our ability to negotiate effectively on behalf of our client is the most valuable skill we bring to every real estate transaction.
Here is a simple perspective on real estate negotiations.
In a real estate transaction, the buyer wants to buy the property and the seller wants to sell it. The agents want to satisfy their clients’ objectives. All the parties have these shared objectives.
Each of the buyer and seller has their individual objectives as well. These are things like price, dates, chattels, conditions, etc. Naturally, these individual objectives will often differ from side to side. Understanding and reconciling these differing objectives is our job as professional negotiators. It’s not a fight or an argument but a process of communicating, understanding and problem-solving. It is our job to take the conflict out of this process and focus on finding solutions.
Here are some words of wisdom that I have collected from some top agents in the business:
- Understand that the other side has their own objectives.
- Know your objectives – what is most important to you and what is most important to the other side
- What are the deal breakers for you and for the other side?
- Transparency, collaboration and frequent open communication are critically important
- Stay in the Macro View – What is each party seeking?
- Negotiation doesn’t happen in front of a computer
- Negotiation is people skills
- We share common and opposing interest simultaneously. We must remain non-combative to resolve these interests.
- Understand that questions will be asked that shouldn’t be answered. Don’t be emotional about that.