Do “nice guys always finish last”? A nice guy is perceived as weak and not aggressive. The nice guy gives up too soon. But is that true at the real estate negotiating table?
When we think of winning the bid in a very competitive seller’s market, many of us think our agent should be like a pit bull or a siberian husky showing it’s fangs to protect our interests. However, in the real world of negotiations, the opposite is usually true.
Real estate buyer or seller agents are the ones who will represent us at the negotiating table. If your agent has the reputationfor being a person who will be nasty and bite and claw for their client’s preferred price and terms, the other side of the table may actually become more resistant.
People like to do business with people they like, and negotiations is no different. Of the eight techniques mentioned in the article below, the most important in my experience is to have an agent who is sharp but who has an engaging and friendly manner.
Negotiating a deal can be one of the most intimidating skills to learn as a newbie investor. Use these easy techniques to fake your way to becoming a pro!
In business, your goal is to create a win-win relationship with the other side. The key is to listen to the other party and discover how you can solve their “problem.” If you can solve a problem and add value to the other side, you will reap the benefits. On our first deal, we knew that the sellers were mom-and-pop owners who were burned out and ready to retire. Armed with this information, we were able to negotiate a lower price and obtain seller financing. The owners were simply going to deposit the proceeds in the bank, and we convinced them that seller financing would provide a higher rate of return, while deferring some of their capital gains. Win-win for both sides: We needed less money out of pocket for the deal, and the sellers sold the property and received mailbox money!
Let me list a few other keys and techniques when negotiating.
8 Negotiation Techniques to Help Every Newbie Land a Better Deal
Put your offer in writing.
We will send over our underwriting template to the seller to show them why we need to buy at a certain price. There is power in the written word. Do not underestimate this power.
Try to be non-confrontational.
People like to do business with people they like and respect. I would rather sell my property to someone I like than some jerk.
Try to find things in common with the other party. As referenced above, people like to do business with others who have things in common. Jake loves to talk about the Buffalo Bills (I don’t know why). It’s amazing how Bills fans will email us and mention they are also fans.