Are you getting the best deal?Posted by on Wednesday, May 9th, 2012 at 9:37am.
In any real estate transaction both sides are trying to get the best deal to meet their objectives. Often time we think it is only about price when entering a negotiation. Price is just the beginning, and though important, may not be the key to a successful negotiation.
The first step in any successful negotiation is to define the objective. Every negotiation is different so defining the objective will set the stage for future success. The objective for the buyer and seller of real estate can be very different so it is critical to learn what is driving the other side.
It is essential not to get hung up on the other party’s stand or position. A skilled agent will ask questions to identify the right area of concern or issue or interest to determine the right motivator or emotional driver(s) to persuade the other party. The stand/position of the other party is just one way to satisfy or make an excuse for their area of concern. Once the area of concern is identified, other possible solutions to satisfy the area of concern/issue can be evaluated or discussed.
There are several keys to building power in a negotiation. Power refers to your ability to influence or persuade the other side to accept your offer or counter offer. Sources of power include:
- Be prepared to walk away; consider your backup options if negotiations fail. Frequently, buyers and sellers get caught up in the emotions of a real estate transaction. It is important to stay grounded during any negotiation and be willing to walk away.
- Knowledge or expertise
- Sound logic, including fairness
I take my role as a negotiator seriously. I am a competitor and at the end of the day I want to be confident I negotiated you the best possible deal to meet your objectives. I look forward to earning your trust and confidence.
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