When you’re buying or selling a property, negotiation is often just part of the process. Both parties want to get the best deal and walk away happy, and that often involves arriving at a happy medium when it comes to compromising on certain aspects to benefit in other ways.
However, if you’re not well acquainted with the art of negotiating, it can be a challenging part of the buying or selling process. The good news is that negotiation strategies are learnable skills that you can develop before going through the process of buying or selling a home.
Learn as Much as Possible
Before you’re able to negotiate for what you want fairly, you’re going to have to learn everything there is to know about the market, comparable properties, recent sales in the area, and anything else that may affect the value of a property. The research step is especially crucial to negotiations.
For example, if you list a home for double the price of other comparable properties in your area because you aren’t aware of what the market looks like, not only will you get less interest, but you will also have less sway when it comes to negotiations because buyers may know what homes in the area are worth and aren’t willing to pay over value.
Knowing where you fit into the current market will allow you to make decisions that put you at an advantage when negotiating.
Discern Between Wants and Needs
If you’re buying a new home, you’re going to want to figure out the things that you want and the things that you need. By setting specific goals based on necessities versus desires, you’ll be better positioned to give a little or stand firm during the negotiation process.
Sellers should determine their desired timeline beforehand, as well as the minimum amount of money they’ll take and any other specific selling terms. That way, both parties can communicate clearly and be prepared to compromise during the negotiation process and, if all goes well, walk away happy.
Communicate Effectively
When negotiating, you’ll want to communicate concisely so there are no misunderstandings. This also means actively listening to the other parties’ views and motivations to reach a deal where both the buyer and seller are satisfied.
A great way to do this is to stay calm, respectful, and objective in dealings with the other party. You should leave personal feelings at the door and allow logic to dictate your decisions based on your research and established non-negotiables.
Work with a Real Estate Agent
Negotiations are always easier when you have a professional on your team working for you. Skilled agents will put your best interest at heart but are also knowledgeable enough to know when you’re asking for too much or getting too little. If things get tricky, a real estate agent will know exactly what to do.
Buying or selling a home is often challenging and stressful. That said, when you master the art of negotiating, you can ensure that both parties are happy with the deal they made and the property they’ve acquired or let go of.