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?

Active Listening:

Communicate interest:
"I want to understand your view." Use gestures and sounds to show listening.

Repeat Technique:
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?
Avoid: Why?
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:

  1. Am I right in saying you really like the neighborhood?
  2. I get the feeling you are wanting to offer more for the property?"
  3. 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.
For example:
"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".

  1. Negotiate an Action Plan
  2. Put the plan in writing
  3. Elicit Suggestions
  4. Check with all parties
  5. Institute the plan!

"This looks like a good plan. You deserve a lot of credit."
Even if it were all your plan!"

Register for your Real Estate Continuing Education Courses