Real Estate Negotiation: What Should Be Your Strategy?

When it comes to clinching the best deal in real estate, your real estate negotiation skills play a very crucial role. Real estate investment is all about making more profit by investing less. This is where your real estate negotiation can work wonders for you. However, you must work on a proper strategy in order to negotiate the deal with the seller. After all, real estate negotiation is a skill that you can acquire with serious efforts and experience. Let me explain to you a few basic techniques that will certainly give you an edge over the seller when it comes to negotiating the deal. 

Offer Less Than You Are Willing To Pay
Offering less than you are willing to pay is a tried and tested technique of real estate negotiation. It brightens your chances of getting the deal in your favor from the very beginning. However, before you use this technique make sure that you have done your research well and your estimation of the value of the property is precise. If you estimate the value of the property more than it deserves and then offer a lesser amount, it is certainly going to ruin all your efforts. Therefore, you must be smart enough to evaluate the value of the property right, and only then, depending upon that evaluation, you should make your offer. 

Offer an Odd Amount
In most cases, it works. When you offer an odd amount, say $91,673, it gives the seller an impression that you have evaluated the property well, and you know the real value of the property better. Such an impression will discourage them in further negotiating the deal with you, and eventually this will give an edge to your real estate negotiation effort. You will find it easy to persuade them to accept your offer.

Show As If You Have Limited Authority 
What I mean by limited authority is that when the seller asks your consent or opinion regarding their offer, just show that you do not have the complete authority to take the decision all alone. Rather you should say them that you will get back after consulting with your family or partner. This way, when you reject their offer, the seller wont feel that bad because they have the impression that the rejection has come from your family and not from you. Your real estate negotiation skills lie in your ability to persuade the seller what you want them to persuade. 

Present Your Offer As Their Idea
It might sound strange, but you can easily do this by using your real estate negotiation skills. Here, let me clarify one thing that negotiation skill comes with your expertise in communication skill. What I mean by this is that you have to communicate your idea in such a way that the seller should get an impression that you are making your offer depending upon the facts and figures presented by them. Let me give you an example. You can say, "Okay, so you mean you are looking for a later closing so that you could get more money. Hmm, that's a good idea. Well, let's do it your way. Then I just need¡­" You can go ahead with something that will present your offer in the seller's words. It sounds interesting, doesn't it? Well, it works as well. 

Does Flattery Work?
Well, in most cases, it does. This can be a good part of your real estate negotiation skill. After all, it is a proven fact if the seller likes you, it will be easy for you to persuade him for your offer. Therefore, communicate in such a way that the seller should get an impression that their ideas are being honored and praised. This will make them happy, and they wont easily say 'NO' to you. 

Hit when the Iron is Hot
Real estate negotiation skills are all about hitting the iron when it is red hot. Let me explain this to you in brief. It is always prudent to agree on every agreeable point first. Once, the seller gets an impression that they have won the deal, just pass on one or two conditions. At such a point, it will very difficult for the seller to say "NO" to you. No seller would ever like to lose the deal at such point over an issue or two that goes in your favor. 

Overall, real estate negotiation skill comes with your communication skill and a pre-planned strategy. Therefore, next time, when you are going to deal with the seller, do not hesitate to use these techniques. Do not forget, using these techniques can won you the deal in your favor.

 

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