Tips for Real Estate Negotiation
Involve all concerned parties
Gather information first
BATNA: Best Alternative to a Negotiated Agreement
- Know your options
- Can you walk away?
- What are the pros and cons of each option?
- What other choices do you have?
"I want to understand your view." Use gestures and sounds to show listening.
Repeat the words or ideas you thought the other person was expressing. "It's too late?" "Too late?"
Use open ended questions:
Who, What , When, Where, How?
Keep others talking.
You may think an interview you were involved in was the "best interview I ever had".not if you did all the talking!
Repeating back a question for clarity is always good practice:
- Am I right in saying you really like the neighborhood?
- I get the feeling you are wanting to offer more for the property?"
- Tell me if I understand, do you want to use the option paragraph but you don't want to lose the opportunity to buy the house?"
Indirect communication is less confrontational than direct.
"This contract is written very poorly and doesn't comply with contract law". -- Direct
"Do you mean you think this offer needs reworked?" -- Indirect
Silence is a negotiating tool.
Only break silence if you truly believe that "what you have to add actually enhances the value of this silence".
- Negotiate an Action Plan
- Put the plan in writing
- Elicit Suggestions
- Check with all parties
- Institute the plan!
"This looks like a good plan. You deserve a lot of credit."
Even if it were all your plan!"
Champions School of Real Estate® is owned by Rita Santamaria and has been providing the highest quality education for Texas real estate agents since 1983 with online courses and campuses in Austin/Round Rock, Dallas, Forth Worth, Houston, San Antonio and satellite campuses across the state. Champions also provides Loan Originator, Home Inspector and Appraiser Licensing and Continuing Education courses.