Good negotiation is an art form, and you’ll often hear it said that the best deals allow both people to walk away feeling as if they’ve gotten what they want, or at least part of it.
While it can take time and practice to hone your negotiation skills, whether you’re on the buying or selling end, keep the following tips in mind.
Always Be Prepared to Walk Away
It sounds cliché, but if you watch skilled negotiators, you will see there is a point where the people involved are always prepared and willing to walk away. Know what your point is before you ever start negotiations so that you can stay firm and committed.
Sometimes you can feel emotional about a property, whether you’re buying or selling it, to the extent that it interferes with your ability to walk away but if you go into it knowing what your point is for that, it’ll be easier.
Be Friendly & Non-Confrontational
It pays to be considerate and respectful when submitting a low offer. Remember, this is personal…it’s someone’s home! Assuming you are buying always express gratitude towards the seller, thank them for considering your offer. Let them know what you like about the house but come armed with facts to support your offer and hold the line. A few good comparables and a willingness to walk away can work wonders. If you make an offer and it is rejected, sit back and wait. If the home is still on the market in 30-45 days touch base again, remind the seller that you are still interested in the home.
Understand Your Position
You should be clear on both the pros and cons of what you’re coming to the table with. It’s important that you are realistic with yourself so that you can handle negotiations accordingly. If you think you have more to offer than you do, or you believe you’re in a seller’s market and that’s not the reality, you could lose the deal altogether.
In general, you should do your homework and be prepared before negotiating anything because in nearly all cases the person who is the most educated and the most knowledgeable is going to fare better. The more you can learn about the property and the seller if you’re a potential buyer, the better. It’s okay to ask tough questions, as long as they’re informed questions.
Focus On Ways All Involved Can Come Out With a Win
A successful negotiation isn’t about one person winning and one losing. It’s about both people feeling that they’ve won at least in some areas.
If you’re buying you want a good deal, but you getting a good deal doesn’t mean the seller entirely loses out and vice versa. Be willing to compromise and work toward a deal where both people walk away feeling positive.
Listen Before You Speak
The person who speaks first isn’t necessarily going to come out best in a negotiation, and in fact, the opposite might be true. There are some reasons it’s better to sit back and listen before you speak in negotiations. One reason is that it lets you learn more about what the other person wants, so you might be able to split the difference in your approach.
There’s also often the chance that someone who speaks first is going to offer something more favorable than you were even going to ask for.
If you listen first, it can help you drill down to the real motivations of the other party so that you can frame your negotiations from that standpoint.
When you are prepared to listen before you speak or react, it can also help keep tempers calm and you can remain cool in your approach rather than jumping to a conclusion or reaction before you’ve heard what the other person is saying.
If you want an experienced negotiator on your team, use EffectiveAgents® to connect with a top-selling realtor today.