Negotiations happen all the time in the daily lives of many. In Real Estate, this is especially true. In the Real Estate industry, negotiations are expected the beginning, middle and end of the quest to find or sell property. In this negotiating quest it is also expected to run into some obstacles that can, and will be overcome by a realtor or investor. Those who negotiate well earn high returns in the long run.
A negotiator is a person who persuades or entices someone or something to work in theirs, or the person they are working for's behalf. In general, they are the middle man that appeases both sides to reach a conclusion. Negotiation techniques are essential to working in the real estate industry. Some real world cases are outlined below.
A simple, yet important negotiation tactic in real estate is making an offer on a property. It is known that the seller typically prices the property higher than what they are willing to accept on it. As the seller is concerned, they want to get top dollar for their property. As far as the buyer is concerned, they want to get a good deal.
The part of negotiation comes in when you try to figure out how much lower the seller is willing to go in order to accept the offer. If this is a property t hat has been sitting on the market for a while, then it is a safe guess that a fair offer will yield a positive result.
On the flip side of the coin, if the property has not been on the market that long, you will want to be a bit more conservative when making an offer. Also, you never know who else is making an offer on the home. Needless to say, the highest bid gets the property.
After you put in the bid, you will wait for a response back. This is typically done within twenty four hours. In this answer, you will get an accepted offer, or you will get a counter offer. If you get a counter offer, someone has begun to negotiate with you. You can accept this offer on their terms, negotiate other terms, or reject the counter offer. More often times than not, once a counter offer is placed, the decision rests in a simple yes or no. Usually it goes no further than that in a simple transaction.
After the dust clears and an amount has been set. The terms can then be negotiated. Such terms can be points, closing costs, seller contribution and more.
As you can see, just in a very simple instance, negotiation happened roughly three times. Think how many negotiating transactions actually pan out in the Real Estate industry daily for each realtor. If you do not have the power of negotiating tactics as a realtor, you will fall far behind the pack and never get the top dollar for your clients either selling or buying a home or investment property.