Real Estate Negotiation is always a tricky subject…
Actually, I really don’t think it is but the reason I say that is because EVERYONE claims to be great at real estate negotiation. Just like home staging and marketing a home, all real estate agents say the same thing, however if it were true then every buyer and seller would get the same result…. and that’s far from the case!
If you don’t know me, then I’m not going to sit here and expect you to believe that I’m a great negotiator (although I am) but instead I’ll break down what negotiation is, and hopefully it will give you an idea of my thoughts on the subject.
To me, Real Estate Negotiating is all about LEVERAGE.
Leverage is about knowing when you have the upper hand and how to (ethically) exploit it, and knowing when you don’t. For example in a hot sellers market where homes are selling in a few days and the home is listed for $50,000 below market value, as a buyer you really don’t have much of a leg to stand on. The same goes for a seller who’s house has been sitting on the market for months- there’s no use holding firm to your price when you finally get an offer if you have to sell because the market has told you that your asking price is too high.
Now I know that’s a simple explanation, but that is really a big part of it. Doing your research ahead of time and hiring a knowledgable realtor will go a long way to helping you take best advantage of the situation you’re in. So now for my tip on negotiating:
Regardless of your situation, it always helps if you try to understand the other side’s point of view. Not that you have to agree with them but it will give you abetter idea of their thought process, and in turn allow you to come up with the best strategy to get the result you want.
Comments or questions? I’d love to hear them!
