How to Negotiate Terms in Real Estate Industry?

According to the Alister Toma– real estate developer, whether you buy a home or car, to grab the best deal, negotiation is the key. However, you need to consider many things to make a successful negotiation. So, let’s explore how to negotiate terms to make a win-win game.

1. Limit Your Enthusiasm

If you see a property you want and shout that it’s perfect and that you’ve been looking for a long time, there is little encouragement for the other party to negotiate. Always remain calm and don’t display any excitement in the property. When asked, control your enthusiasm while comparing it to other options. Then suggest that you can consider this option, but for the right price.

The strength of your negotiating position depends on your actual alternatives to this offer. As a buyer, you should never focus on a single product; always explore around and keep your alternatives open. As a seller, you should always be prepared to look for increasingly potential buyers.

2. Never Make the First Offer and Don’t Negotiate with Yourself

Whether you are selling or buying, you should never make the first offer. Why? Because you never know the other party may offer you a price that is a much better deal than what you first had in mind. In case you are buying, consider the beginning point as the list price, however, clarify that the cost is excessively high. From that point, inquire the seller if there is any possibility of flexibility and try to convince the seller to offer you a lower price. It is just by then you should make your first offer.

However, after making an offer, except if and until the point that the other party has reacted with a counteroffer. And while negotiating do not forget to remain confident.

3. Keep It Graceful

You should never let negotiations become too tense. Always keep smiling and add some humor to the conversation. Lightening up the mood can help in making a comfort level with your opponent while also carrying your negotiating strength. If you do not look to be taking the negotiation very seriously, another party may conclude that you are ready to move on if you don’t get the price you want.

4. Choose Written Communication If Possible

In the industry, many leaders prefer negotiating in writing on notepad using just numbers. It helps in avoiding language barriers while creating a record of the negotiations. Also, it makes communication a lot easier between parties when negotiating back and forth. Non-verbal communication strips away all of the signs that one’s facial expression and manner of speaking can give away – which is the reason most real estate deals are made through real estate professionals and in writing.

Final Words

So, these are few tips from Alister Toma – real estate developer to make your negotiation game strong. Don’t think much and bite the bullet!