Real Estate negotiations are a lot like playing poker. The more chips you have the more power you have in the game. You can bluff and you can go all in whenever you want.
The Same thing applies to negotiating in anything, but in particular in Real Estate. When you are selling property you want to be a bully. The reason is that you need to make as much money as possible. Once you stop becoming the bully, you become the victim of someone bullying you!
Its sounds very cut throat and it is. Agents are trained killers and the media fuels the fire to sellers to get the most for their house and how to. Agents are trained to use anything to get the most for their clients and not care about what they are leaving behind. Since the moment I joined the real estate profession, I have been bombarded with courses and knowledge on how to win at negotiations, how to get the most for my client (legally) and how essentially kill the other people coming in the door with a smile!
When selling a house there are a few techniques to use to be a bully that should be used in all negotiations.
1. Pricing: Make sure you are not over priced. If you are overpriced you cannot bully anything. Your house is just over priced stale wood. If you price it under the market a bit you can actually spur a bidding war and that gets into whole new series of bullying that I will cover another time.
2. Once you have the correct price, you have to stick to your guns. So in order to do this you have to be willing to say to a buyer “NO”. If you have the correct price and the agent is doing his job you will be able to say no because you can just take the next offer coming in. If pricing is off and no marketing has been done and it has no movement, you will have to succumb to what the buyer is trying to do to you in negotiations.
3. Do not commit. If you are selling a house, do not go buy another house. If you have and your need is to sell the house ASAP you will need to get the best offer you can and will have to lower your price.
4. Do Not FALL IN LOVE with the house: If you are buying a house, do no fall in love with it. Look at it as a piece of Real Estate, wood and brick. Chances are that there are a number of houses that are very similar on the market. A builder usually builds the same model in a sub division. Truthfully there are a lot of stages that need to pass before a deal becomes official and deals can always not close at closing. Also take pictures and if it doesn’t work out, you can renovate a house to look similar.
5. Walking Away: On both ends of the transaction, you don’t want to not negotiate a little bit but be able to walk away at a moments notice you don’t like something that is going in a sour direction. Be reasonable, transactions do not typically go smoothly but watch out if the other party is over stepping their boundary.