Written by: Sarah Vance
There are 5 kinds of negotiators: competitive, collaborative, compromising, avoiding, and accommodating. What’s your style?
- Competitive negotiators are results-driven, assertive, and aggressive.
- Collaborative negotiators are honest, understanding, and creative in finding solutions.
- Compromising negotiators conduct fair dealings and judgments even at the expense of their own superior outcome.
- Avoiding negotiators hate conflict and are easily stressed or intimidated. They prefer to stay under the radar.
- Accommodating negotiators build and maintain relationships; are attentive to needs; and sensitive to emotions.
5 Tips on Negotiating a Real Estate Deal
If you find yourself in a competitive market space and your clients agree, try locking in the property with an escalation clause. Escalation clause states that the seller agrees to pay a certain amount more than the highest offer received. There will usually be language capping the total sale price, to ensure buyers/investors do not agree to more than they can afford.
- Negotiate in person. Reactions to tone of voice and body language is often better received than guessing the intentions and tone of an email or text message.
- Never make the first offer. Most negotiations end up “splitting the difference.” Let the other party speak first. This allows for you, the second party, to define the midpoint. Also, there is a chance that the other party’s first offer will be better than the first offer you would make.
- Talk less and listen more. Embrace the awkward silence, one party will likely offer concession to break the uncomfortable situation. Whether is 30 seconds or 15 minutes, expert negotiators will employ this tactic to receive successively lower offers without having to present a counteroffer.
- Do your homework. Know everything you can about the subject matter of your negotiation as well as the person you’re negotiating. Find out what’s important to the seller is it money, escrow period, contingencies, etc.
- Always ask for and receive the last concession (something the other party gives) in a negotiation. If the other party realizes that each time, they ask for something they will need to give something they will likely stop asking.
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