How To Negotiate
In Real Estate
How to negotiate in real estate is where many For Sale By Owner (FSBO) home sellers really have problems. The wrong attitude or a slip of the tongue could cost you thousands. Here are a few pointers to keep you on the right path:
1. Show interest in selling the house. In an effort project a sense of strength many people either take an aggressive "take it or leave it" attitude, or they appear to be overly relaxed, almost disinterested. It
is better to have an open mind, stay calm, be helpful.
Carefully investigate and analyze the facts. Make an intelligent response to the buyer. Being helpful makes it easier for the buyer to relax and be more willing to see your point of view.
2. Listen carefully to what the buyer has to say. Try to learn about the buyer's needs, wants, desires, fears, frustrations and problems that need solving. This will give you the information you need to work
with the buyer and close the deal.
3. Don't let your personal feelings get in the way of accepting a good offer. Don't get thrown off by the little eccentricities of people. You may not like the buyer, but that doesn't matter. A little patience on
your part could make you thousands of dollars. After the sale of the house, you never have to see him again. Keep emotions and finances separate.
4. Use time to your advantage. If at all possible, try not to be squeezed for time. Find out if the buyer has to move in by a certain deadline. The closer the deadline, the more they will be willing to pay a little
higher for a quick close.
5. Close using the mortgage payments rather than the price of the house. You would be surprised how little the monthly mortgage payment changes when the asking price changes by several thousand dollars. You can
work out mortgage payments here.
If you can find out income related information from the buyer, it will be easier to use this technique.
6. Stack the benefits in your favour. Try to include several factors that can be negotiated instead of just the price. For example, you can include blinds, furniture, tools or other items to enrich your offer.
Try to trade-off some of the bonus items instead of reducing the price.
7. Create a win-win situation. If the buyer feels like they are getting the short end of the stick it will be difficult to close the deal. They have to feel like they are winning. Here's how Roger Dawson put it
in his book, "The secrets of power negotiating": "When you get the gold out of their teeth, that's not negotiating. That's stealing. When you get the gold out of their teeth and they thank you for it, that's
If you follow these points you will certainly be on the right path to selling your house for a higher price. However, there are many tactics and strategies you can use or have the buyer use them on you. A
little time spent on preparation can literally save you thousands.
You can learn more about how to negotiate for a higher price by handling the offer properly and other
Going through this information will take you a couple of hours, but it is most profitable time you will ever spend.
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