Real Estate Negotiations – How Negotiating Skills Make You More Money

Real Estate Negotiations can be one of the most intricate social or business interactions any of us will ever be involved in. Your real estate negotiating skills can make or break a deal. When it comes to real estate negotiations, you’ve got some stiff competition out there, especially when you’re sitting across the table from a savvy investor who has his eye on getting more than he gives. Use these tips to hone your negotiation skills and be ready the next time you’re in the game.

121. Always have an out in case your due diligence is wrong. Subject to Buyer’s Arranging Suitable Financing. Subject to Inspection. Subject to Buyer’s Partner’s Approval. Subject to Independent Analysis of Seller’s Property’s Financial Statement, etc.

122. Here’s one from the famous Ron Legrand: “…if you’re a beginner and worried about the seller finding out you don’t exactly know what you’re doing, don’t sweat it. You don’t have to appear to be an expert. You can try to fake it but, if you’re confronting an intelligent seller, many times they’ll see through you and try to ask you embarrassing questions. So if you’re asked if you’ve ever done this before, use these words: “Well actually, no. This is my first deal after graduating from some rather intense training. I was hoping you’d help me do it right, OK?” Thanks Ron! As far as you, if you’ve read this message on real estate negotiations and read the books recommended, you will definitely be qualified to say this last part about intense training… I give you permission.

123. WRITE A BUSINESS PLAN BEFORE YOU BUY

124. Always know your exit strategy before you go in to a real estate negotiations session. This determines what you need and what you want but don’t need.

125. Never blink first. (This is a metaphor, don’t do the staring game)

126. If there is a “deal breaker” you must get agreement on there’s probably not a great deal, but push for it- you might get it. Real estate negotiations should be fluid and not so rigid that either party MUST get something.

127. Use “they said….” when justifying a reason. THEY who? Who cares…all that matters is that you didn’t say it. THEY did. So you can’t be alone in what you say…it was THEM that said it too. Maybe The Fed Chairman, or the Wall Street Journal or the local news anchor said it.

128. Perception is reality. Control the perception and you control what really IS in negotiations. This is an out-of-the-box negotiation skill but a very powerful one.

129. The optimal temperature for negotiations is 68 degrees. People are most suggestible, open to debate, and flexible in this environment. Don’t ask me how I know that. Sorry, I’ve been sworn to secrecy.

130. Use curiosity to gain attention. People will go to untold lengths to scratch that itch. I could tell you about the government study proving how 77.6% of all people are curious about blank but “Sorry, that’s classified”. That’s one of the sneaky real estate negotiating skills, but not unethical…curiosity has amazing power.

131. Pull the “I’m sorry I can’t get approval for that” routine. Place blame on someone else that you just can’t do that. Then offer to ask “them” again if the person you are negotiating with will do X.

132. Give respect to get respect. Real negotiators know you can’t dictate and you can’t act the fool and expect to reach a mutually beneficial negotiation. Disrespect the other party and they’re more likely to walk away even when you KNOW they need the deal. So be respectful at all times- it is the right thing to do and plus your pocketbook will thank you.

133. If you win a shouting match, chances are you lost the deal. Shouting is NOT a negotiating skill. VERY few times is it advisable to show your anger in a business negotiation (although sometimes this is the very thing that will SEAL the deal, crazily enough).

134. Give people what they want, easier, better, and faster. Why do they need to negotiate with anyone else? The best negotiation tactic sometimes is if you can give them exactly what they want when and how they want it and still come out good…do it and there’s little need for fancy real estate negotiating skills.

135. Let other people know you’re willing (or actively already ARE doing so) to negotiate with another party(ies)…”they offered me X…but…what can YOU do?”

136. There is no room for “EGO” in “nEGOtiations”. Let me spell it out for you: you can be “right” or you can make money…sometimes you have to choose which you want most.

137. Always treat everyone with respect. Even in the midst of a negotiation, take the time to be courteous to all the ancillary players in the game and any bystanders. There is no man from whom you can learn nothing…wow, was that deep or was that deep?