4 Keys to Remarkable Real Estate Negotiations
Moving into a new home is exciting. However, negotiating the pricing and terms of the contract is downright frustrating. Especially, in a market like Nashville with more active buyers than there are homes for sale.
In many areas, homes are sold as soon as they hit the market. Or worse, have multiple offers which lead to a bidding war.
You would think that today’s sellers have all of the leverage, but you’re wrong because most home owners and their agents are not master negotiators.
They might be great marketers, but many lack the full set of tools needed to bring all parties to an agreement while getting the best possible deal for their client.
With your victory in mind…
Here’s the 4 Keys to Remarkable Real Estate Negotiations
1. Sticking to the Facts
Gather as many facts about the property and the situation as possible, with special attention placed on the price. Facts are like ammunition for a soldier. You cannot go to battle and win without the right kind and amount of ammo.
Many times the negotiations hinge on the value placed on the home. It is easy for the seller to get personally wrapped up in the value placed on their home. By keeping the focus on the facts, the negotiations are less likely to be taken personally.
We use proprietary systems to price properties for our clients. These systems were developed while performing thousands of market analysis reports for our bank clients. While time consuming, these systems provide you the edge in price negotiations and prevent you from paying too much.
2. Having Alternates (and Being Willing to Use Them)
Even if this is the one house that you have been dreaming about since childhood, have an alternate.
A Backup Plan.
A Plan “B”.
If a seller senses that this is your only option, they will be like a shark that smells blood in the water. You will lose and it will be ugly. Appropriately, let the other party know that you have options and that you are willing to use them.
You have to think like you have another place to go, even though you might not have found it yet. Because another option is likely out there or will be soon.
Many times I have watched clients make the right decision to go to plan B, and find a better home at a better price a few weeks later.
What are a few more weeks of time, if you get the home of your dreams on the best terms and at the right price?
This is the attitude of a winner.
3. Stripping Emotions
Never let the other parties know how much you really want or need the deal. This is not about feeling indifferent, but revealing it instead. By showing your hand, you are giving the seller a decided advantage over you in the negotiation process.
To help control the emotions on the other side of the table, frame your positions around mutual interests and the end result. Presenting a win-win will help the other side feels better about your proposal.
Experience has shown our respectful negotiation style leads the other side to be more agreeable.
4. Finding Motivation
Listening is crucial in negotiations. By listening carefully you will find what the other side wants. This is an important first step.
Most critical is discovering the motivation behind the seller’s desires.
Not on the surface, but a deep understanding of the seller’s “Why.”
To get there, we dig as deep as we can by asking the right questions at the appropriate time. In addition to listening, we pay careful attention to both verbal clues and visual body language to fill in the gaps and truly understand what is driving their decisions.
Why do we go to so much trouble to truly understand the seller?
We know that uncovering the seller’s motivation is the best vantage point from which we can negotiate.
Why do we go to so much trouble?
We put much emphasis on negotiations because we know it saves your valuable time(and ours too!), and helps you realize your dreams faster.
Feeling smarter already?
If you are ready to take the next step, then call Steve Jolly now at 615-519-0983
Otherwise, keep searching for your dream home here!
P.S. My best advice: Don’t be like those who find their dream home, only to lose it in the negotiation.