3 Powerful Real Estate Negotiating Tips
Q: Gerald, I’m looking at buying a home and because I’ve never seemed to have much luck negotiating when I bought a car, I’m nervous about the negotiation side of purchasing a property. Do you have any tips you can give me? – Larry, Sparta NJ
A: That’s a great question, Larry and by the way it’s normal to be nervous about negotiating especially if you don’t have a lot of experience doing it-this applies to most people. There’s a myth about effective negotiating that a lot of people hold which is that being a good negotiator is about one person dominating and getting his or her way over the other person-that couldn’t be further from the truth. Effective negotiation requires finding common ground and maximum satisfaction for all parties involved. That said, I’m going to give you 3 Tips to effective negotiation: 1. Set your goals and financial boundaries before you start making offers to purchase—preparation will reduce your anxiety and setting boundaries will protect you from giving in or paying too much in the heat of the moment. 2.Find out what the other person or party wants and then do your best to construct a win-win solution that works for everyone involved 3) Know when to walk away, negotiations aren’t always going to work in your favor and the fact that you’re willing to say no and walk away gives you leverage in a negotiation. When you walk away, a lot of times the other party will come back to you later on-and if and when they do, you’ll have an even stronger negotiating position to work from. Thanks for your question, Larry. Good luck. For more real estate tips and for information on my real estate coaching program, visit performanceproperty.com. I’m Gerald Lucas and I’ll see you again soon.