Negotiation is the amalgamation of science, skill, and art. When you are stepping into the field of real estate, you need to negotiate to get the best deal. If you are weak in the negotiating game, then it will be used by the counterpart to exploit the deal.
When you are making any deal related to real estate like selling a property, then it is one of the most significant transactions. Negotiation is a skill that you need to learn and practice to make it perfect overtime.
According to Huffpost.com, top negotiators know how to set the bottom line and walk away from the deal if it is not worth it without letting the emotions to manipulate the rationality.
Jonah Engler Negotiation Tips on Sealing a Real Estate Deal
1.Narration: An eye-grabbing narrative will consist of good storytelling and solid math. You will have to justify the position by using the substance. Use analysis related to real estate to show how the comparable houses in the market have done business all these years as your negotiation subject.
Differentiate the comparables with that of the subject property. Use written reports to talk about compliance in addition to that, zoning rights, the remaining lifespan of the system, and finishing. When you are negotiating, it is more about the numbers which make sense and helps to seal the deal.
2.Don't Be Overenthusiastic: Irrespective of how important the deal is you must always hide the emotions. Do not share unnecessary details that might put you in trouble. Try to listen more instead of talking.
While making any real estate deal every silence counts as the other person will get intimidated and will fear that they might lose the potential deal.
3.Control What The Other Party Is Thinking: Most people would hate to be forced into doing anything. Every smart negotiator will always try to subtly encourage and make the other person think that they are in control of the whole deal.
You can do this by offering them the quick out. You can use some affirmative languages for example; "You might refuse this deal, but…" this type of sentences will help in increasing the compliance.
4.Create A Win-Win Situation: Do not make every real estate deal look like a battle. It will hurt the client's interest and other agents so you won't get the opportunity to work with them ever.
Try to focus on taking issues and finding solutions to it. Refrain from making everything look like the adversarial crisis. Once you do it, you will find that the fellow agents and clients are thanking you.
5.Allow The Other Party To Speak First: Place all the cards strategically on the table. Never put all your strong points at the beginning of the conversation. Try to stay quiet and analyze what the other person wants by letting them speak first.
After learning about everything, then express the figures that you have in your mind. In this way, you will be able to manipulate the budget according to the statement made by the party. It will help you create a middle ground that will look like a potential deal to both the party.
6.Dynamics of Real Estate: Understand the climate of the current real estate market. At times you will find that the market rates have hiked. It is essential to be aware of all the facts before you are approaching the real estate's negotiation table.
To get reliable data, you cannot just depend on one or two real estate transactions. You must also be aware of the factors that contribute to the deflation or elevation of property prices. Like if the house has a new roof, then it will add more value to the property, and if the roof is old, then it will deflate the price.
Your negotiation will be enhanced if you have the basic knowledge of the real estate market. You can also hire someone professional who will research for you if you want to save your money and time.
7.Persuasion Technique: Create a list of all the persuasive endeavor of yours. Try to practice it every day and analyze what works and what does not. See what you want to tell and what you are saying instead during the deal.
Practice will help you to come up with some successful techniques. Over time you will be able to analyze what works best for you by staying honest and consistent.
8.Befriend the Words No and Friction: One of the powerful tips related to the negotiation technique of real estate is to befriend the words No and Friction. If you fail to say no, then it will work as a disadvantage. When you are using the power of friction, use it sensibly as it can help you in the game of negotiation.
While using friction to negotiate, do not look overexcited or look like someone challenging to work with. If you are using the word no at the peak time of the deal, then it will become very persuasive to the other person. They will get intimated and will think that they have failed to create the win-win situation.
According to Jonah Engler, even when you are bluffing do not think twice to put an act of walking away.
9.The Goal of the Other Party: If you rush towards sealing the deal with negotiation without familiarizing yourself with the needs of the other party, then it will act as a disadvantage.
It is essential to consider the other party's goal to make the deal look like a Win-Win situation or for leveraging using friction. Try to give a subtle but powerful hint that it is going to lead them towards their next optimal goal.
10.Earn the trust: Negotiation and trust work in synchronization in the field of real estate. Always be truthful and display trustworthy actions if you want the negotiations to work correctly.
If you lie for making a deal work, then you will have to face the repercussions when it is discovered.
Conclusion
These are the top 10 most effective ways to negotiate while dealing in real estate. Even if you are a newbie, these negotiation skills will showcase your potential. If you don't want to face loss, then you need negotiation skills to monitor the deal according to your interest. Your prime focus must be on what works best for your client if you want the client to rely on you.
