Focus on what`s reasonable. Clearly understand what the other side wants and articulate what you want. This will most likely lead to a win-win solution if sensible people are involved. And most importantly, remember, real estate negotiations aren`t about egos — they just tend to find solutions on their way. It is a question of finding the best alternative for all parties involved. There will be times when we will not reach an agreement, but most of the time we will. In the simplest, a real estate negotiation is a discussion that usually takes place between two parties with a problem to be solved. Both parties try to use influence and/or leverage to achieve their respective objectives, which are often not the same. The nature of these discussions may take a win-win or win-win approach. After Saul Alinsky, “there is an art that one takes and how one gives. Regardless of your political views, I think we all agree, Mr.
Alinsky`s idea seems to be a good starting point for developing a strategy on how to negotiate. And only for the record, even William F. Buckley thought Saul Alinsky was very effective. You see, even polar political opposition can find common ground for a deal! It may be somewhat possible to say that these two figures have never been in full agreement, but a full agreement is not relevant to a successful negotiation. But how does Mr. Alinsky tell us to try to optimize the results for two facets of conflicts of interest during a real estate negotiation? In the end, if you and the seller cannot get within the time (normally 7 days) in the contract an agreement for all agreed treatments, repairs or replacement before the end of the contract, the contract expires and your serious money deposit must be returned. Let`s take a look at a fundamental scenario. If a seller has cost his home in accordance with the market for $300,000, it is probably inappropriate for a buyer to expect the seller to accept a sale price of $290,000 based on the fact that the buyer has been approved for a loan, coupled with a request for $8,000 in closing assistance.
Basically, the buyer asks the seller to sell his home for $18,000 below the market price. It is not a win-win solution. There are many other factors that come into play, which can help the buyer and seller in this example to reach an agreement. If the buyer absolutely needs the final help, he should be prepared to increase the selling price. Other terms could also be adapted. For example, the buyer could pay the seller`s title rules or allow a seller who needs more time to lease a seller. Every situation is different and a size is not suitable for everyone. However, these are examples showing that each page “gives something to get something.” Too often, negotiations on minor details collapse because one or both parties seek a “I win – they lose” solution. Remember how many times have we seen that a difference of several thousand dollars led to the failure of a transaction? As a rule of thumb: If a buyer funds a purchase, each buyer funds $1,000 and costs a buyer $6 for their monthly mortgage. A difference of $2000 in terms of selling price is therefore about $12 per month for a monthly mortgage payment.
Now let`s move forward and see how to resolve the option period and fix the negotiations. This is usually called the second bite (negotiation).