Negotiating is a part of nearly every real estate investment deal you’ll be involved with. Whether you’re working with a buyer or seller, an agent, or a contractor for repairs, you will find yourself in a discussion where you both want something, and you’ll have to compromise to get it. How much compromising you have to do, however, is up to you, and much of it comes down to how well you negotiate.
If you really want to hone your negotiation skills for future real estate deals, here are 3 of the most important actions you can take.
- Do your research in advance. You know what they say: knowledge is power. The more you know going into a negotiation, the better off you’ll be when it comes down to ironing out details and getting what you want. In a real estate negotiation, this means having a solid understanding the market you’re in, the property in question, as well as the person you’re negotiating with. What is their role in the process? What do you know about them? How can you use this information to your advantage? The bottom line is to do your homework on every facet of the deal before you enter into any negotiations. https://www.inc.com/samuel-edwards/5-exercises-to-improve-your-negotiation-skills.html
- Be a better listener. I’m a talker. It’s just who I am, and it’s something that works really well for me most of the time. However, I’ve also learned that being a great listener is just as important – if not more so – than being adept at expressing myself. People want to feel like they’re being heard, and this becomes even more true during real estate negotiations. When you really listen to people, it helps you build a rapport with the other person, which is important in sealing the deal. Don’t just listen to what they’re saying verbally, either. You also need to pay attention to their body language. These types of nonverbal cues can give you added insight into how a negotiation is going and what you may need to do to turn the conversation in a new direction.
- Understand that negotiations are about give and take. Every negotiation involves give and take from both sides; it’s the only way a compromise can be reached. You have to make some concessions during this process, and here’s why: it will build trust with the other party; it adds value to your offer; and it will ultimately help move the deal forward. By the same token, the other party must be offering up some concessions of their own. If they’re not, there’s nothing wrong with you suggesting a few that will work in your favor. If they’re unwilling to do this, then you may be negotiating a deal that’s not worth your time or energy. https://papersourceuniversity.com/5-tips-to-improve-your-negotiation-skills/
But wait, there’s more! Here are a couple of bonus negotiation tips for you:
- Let the other party make the first offer. Doing this lets you know right away where they stand and gives you a starting point for negotiating. Plus, you eliminate the risk for upsetting them with a potentially insulting, lowball offer.
- Don’t demand an answer right then and there. Instead, allow them time to think and consider, but be sure to attach a deadline to it. Don’t leave it open-ended on when they can get back to you. If the deadline comes and you haven’t heard from them, make sure you follow up to get your answer.
Negotiating is truly an art form, and it’s something that you can develop and improve upon. Take these tips to heart, and in time, you will find yourself becoming more comfortable with the process and able to secure deals you can be proud of.