5 Real Estate Negotiation Tips You Need to Know
In many real estate transactions, there is a fair amount of real estate negotiation – offers and counteroffers – before both parties are satisfied.
Whether there’s only one offer on the table or you’re navigating a multiple offer scenario as a buyer or navigating a multiple offer scenario as a seller, negotiation skills are critically important in today’s real estate market.
Following are five things to keep in mind if you find yourself in the midst of negotiations.
- Keep the circumstances surrounding your move between you and your broker. The more the other side knows about your situation, the more leverage they have in negotiations.
- Fight facts with facts. Support your offer or counteroffer with as much evidence as you can – especially recent comps – to make a compelling case.
- Do not negotiate directly with your counterpart. Negotiations can be a highly-charged and emotional process, and you don’t want those emotions to get in the way of accomplishing your goals. As an objective voice, a broker can help you work the best deal possible.
- Require a pre-approval letter with all offers if you’re a seller, or present one if you’re a buyer. This saves time and ensures that negotiations only occur between qualified parties.
- Save face. You never know when a party may return to the negotiating table, so it’s best to always leave the door open.
Negotiating is an aspect of the real estate transaction in which a broker is truly invaluable. Not only can a broker draw upon his or her experience and market knowledge to offer sound advice during a negotiation, but he or she can also serve as a buffer between the buyer and the seller/seller’s broker.