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Negotiating For Real Estate Or Homes

Insider tips for the Negotiating of deal making in real estate.

Tip 1 - Keep alert, watch for signs from the other side that reveal their strengths and weaknesses.

Tip 2 - Use “silence”. Known more as “the silent treatment”, this strategy is one designed to make people uncomfortable. It is usually employed after making a strong point in the conversation or dialog. Just sit and wait, the loss of comfort on the other side may just trigger a concession or reveal a weakness. This may be very hard or even awkward, but many times “the first one to speak loses.” The longer you go without speaking, the more uncomfortable everyone gets. With this lack of comfort someone will finally say something just to break the silence, and that is when they may say some unguarded and revealing. Many times this information will lead you to another strategy.

Tip 3 - Use the “flinch”. The flinch is a small sound or facial expression that shows some displeasure or surprise to the other party. Many times the “flinch” is overstated by you just to get a reaction or interrupt the other side. It is designed to plant serious doubts in the other person’s mind. Even the most experienced negotiators can be thrown off by the timely “flinch”, especially when they have just mentioned a monetary figure. It is very successful at throwing the other party off their plan.

Tip 4 - Use the “deadline”. In negotiating it is very important to set deadlines. At the start of a session you should set a time limit or deadline when you have to depart. Deadlines keep the situations under control and help to get results. Face to face meetings or even phone calls need to have the time limits established right at the beginning. Also set a time and a date when any offer or concession will expire, this forces decision making and action.

Tip 5 - Use the “competition”. Competition is a very well understood activity. When you can use a reference to some competing events or parties, it can be an alarming situation for the other side. They start to feel less secure and may open up to new or additional ideas. Buyers can remind the listing parties that here are a lot of other properties to choose from, many of which could work well for the buyer. On the other hand, listing parties can mention that other offers may be forthcoming. It is important not to lie, but you should present options that available to your side.

Tip 6 - Use the “perk”. There are always non-monetary perks that can be negotiated in the contract. Time is a good concession or perk - closing the deal early or later can be a real stress reliever for the other party. Many times flexibility is the key. Building commitment is another perk - offering to add more money to earnest money deposit shows serious commitment while not increasing the total cost of entry (it reduces the remainder of down payment due at close). Sellers are more secure as your deposit increases. Free home warranty policies are many times used as the “closer” at the end of a negotiation.

Tip 7 - Use “walk away”. Preparing to leave the negotiation is a dramatic and effective ploy to force the other parties to alter there position. If the other parties is being non-committal or refusing to discuss or make counter offers, the walk away can be used to shock them into a change. But be prepared to actually walk - if that happens then you may have to re-employ the “silent treatment” for some time thereafter. Prepare for this situation ahead of time with your clients to demonstrate conviction and avoid a backfire. The walk away is effective but can be a risky maneuver.

About the Author: Bob Foust is the chief executive for the FOUST Team at C21 Discovery; one of the top-selling real estate teams in Southern California. He specializes in Orange and Los Angeles Counties and operates one of the area⬔s most informative real estate websites.

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