Have you finally found the home of your dreams, only to discover that the price tag is just outside of your price range? Some people might discouraged because of the high cost of the home, but there are a few things that you should consider before walking away from the deal. Real estate negotiation can be a great way to bring the price down just enough so that you can afford to buy the home that you want. In this article we will discuss How to Negotiate in a Real Estate Transaction. These negotiation tips can also be useful if you are selling your home.
#1: Don’t Speak First
One temptation during a negotiation is to jump right into the conversation by stating exactly what you want in the deal. But, it can be advantageous to hold back and let the other party speak first, because it will allow you to get a feel for the situation so that you know where they are coming from. When the other person speaks up first, you have the opportunity to define the mid-point of the negotiation, making it easier to cater the final agreement closer to what you actually want.
#2: Listen More, Talk Less
In any type of negotiation, whether it is real estate negotiation or another type of transaction, you should make a concerted effort to listen more and talk less. Keeping your mouth shut is actually one of the strongest maneuvers that you can use during the negotiation process, but many people also find that it is the most difficult as well. Silence makes other people uncomfortable, which means that someone might make a concession in order to break the silence.
#3: Friction Can Be Beneficial
It might be assumed that a negotiation which ends smoothly and quickly is a good negotiation, but the truth is that minimal back-and-forth means that you might have pushed a little harder to leverage the transaction in your favor. If the negotiation ends too quickly, then it means that you probably didn’t get the best deal possible since the other party didn’t put up much resistance. Minimal resistance means that they were happy with the deal, so you might have received the short end of the stick.
#4: Do Your Homework
Doing your research before the negotiation puts you in a place of power, because you will know the facts and understand where you can push and where you should concede. For example, when you are buying a home, you need to do the research to understand comparable home sales in the area, potential damage on the home, and a little bit of history about the seller and the property. All of this information can allow you better negotiation strategies.
One of the most effective ways to negotiate a real estate deal is by working with an experienced real estate agent. At Duffy Realty of Atlanta, we are experienced with all types of real estate negotiation, and we can help you with the negotiation process. Contact our team for more information: (678) 318-1700. We hope you enjoyed this article on How to Negotiate in a Real Estate Transaction.