| Negotiating can be tough. It is more an art of | | | | the best for both parties and can be negotiated |
| applying techniques to each unique transaction rather | | | | rather than concentrating only on sales price. One |
| than cut and dry responses. With home sales, each | | | | new home buyer offered her home to be on a |
| home has a person behind it with emotions that can | | | | property tour once a month in exchange for $5000 in |
| be triggered either positively or negatively. Whether I | | | | closing costs paid by the seller. Basically, understand |
| am the agent for the buying or selling end, I try to | | | | the other party's situation so that you can try to |
| advise my clients with facts rather than emotions. I | | | | come up with something that might benefit them as |
| have run into other agents who get quite emotional | | | | well as who you are representing. That way, you can |
| and defensive about a transaction, and I can | | | | hopefully turn the negotiations into a win-win |
| understand that inclination because some deals can | | | | situation. |
| just become so frustrating, but as the agent, it is | | | | 3. Offering packages. |
| best to take a step back and provide professional | | | | As a buyer, don't negotiate one thing at a time. |
| consultation instead of escalating your client's | | | | When you present items to be resolved, for example |
| emotions. These are some negotiating techniques to | | | | repairs, always do this as a list.h That way, you can |
| keep in mind as options rather than letting a | | | | trade-off one thing for another. For one, negotiating |
| negotiation go sour. | | | | one thing at a time is a waste of time when |
| 1. Don't sweat the small stuff. | | | | everything can be discussed at once. Everyone is |
| It is common that people will haggle or get attached | | | | busy with their lives, and no one wants to be |
| to small things like refrigerators. I try to put these | | | | pestered multiple times about one more repair item. |
| things in perspective for my clients. Would you rather | | | | This just makes the seller progressively more irritated |
| convey a $1000 used fridge to these buyers who | | | | and less agreeable to the next thing you ask for. |
| are ready to move forward with just this one | | | | Also, the list format forces the issues to be |
| concession, or do you want to put it back on the | | | | prioritized, and you can set your boundary of what |
| market and pay more mortgage payments until the | | | | can be left out and what absolutely must get |
| next buyer is interested? A lot of times, if you look | | | | resolved. |
| at the overall picture of how much it will cost to put | | | | 4. Dealing with threats. |
| something back on the market, including mortgage, | | | | This does not happen often, but some people will |
| taxes, and insurance, there will be a breaking point at | | | | threaten termination as a bargaining technique. I |
| which the seller understands it is not worth the | | | | would not advise using this technique, but it is good |
| money. From the buying perspective, if we take the | | | | to know how to deal with it because the typical |
| fridge example again, is it really worth the fridge to | | | | natural reaction is to tell them to buzz off. One |
| spend more time looking and spend money on | | | | solution is to ignore it and just talk about the strong |
| another inspection? Sometimes your client will say | | | | points of your property or client. You can also |
| that it is worth ending the deal, and in that case, you | | | | re-frame threats to show that it is not in their best |
| will represent them as they want, but most people | | | | interest. |
| become rational after they get past the initial | | | | 5. Knowing when bargaining zones do not overlap. |
| emotions of "wanting" something. And some clients | | | | Sometimes the negotiations are just not going to |
| will even thank you for helping them through the | | | | happen. A buyer and seller are at opposite ends. In |
| small things. | | | | this case, rather than continue to make ridiculous |
| 2. Negotiating other issues. | | | | demands (or at least seen as ridiculous by the other |
| Think creatively. Sales price is not the only issue in a | | | | side) and creating a volatile situation, it is time to end |
| transaction. Closing a couple weeks earlier may be | | | | the transaction and move on. |