5 Tips to help investors win the negotiating war over the sellers

negotiaton

Negotiating in real estate is a mental and emotional game. The outcome of negotiating over property usually boils down to both parties being dependent on their emotional strengths and downplaying their vulnerabilities.

My first negotiating process over a home did not go so well. I was nervous and I believe that the homeowner was aware of the fact that I was a novice due to my stuttering and twitchy body movements. That was the point when I realized that strong negotiating skills was a necessary tool to have in my arsenal as a real estate investor.

Here are several tips that will help any novice real estate investor become a better negotiator:

Control Your Fear

There is a strong possibility that you may lose the deal if you do not exude confidence. You must act like you know what you are doing. If a homeowner smells fear in you, there is a strong possibility that he or she will use tactics to capitalize on your fear.

Showing your fear will weaken your position and cost you leverage in the deal. Just believe in yourself and you will do fine!

Greed

Nothing leads to rash decisions and mistakes faster than greed. Greed will put you in a position where you can easily be manipulated. Your goal as an investor is to create a win-win situation for all involved.

Most of us have some degree of greed and it is very important to be able to control this emotion. You should be concerned with making a decent profit and move on to the next deal. You should walk away from the deal if the homeowner is showing any greed in negotiations.

Ignorance

You should always be aware of what you are doing. Do you have several proposals prepared for presentation to the homeowner? Have you done your due diligence on the property? Are the property taxes current? Are there any liens on the property?

It is your responsibility to be aware of all factors as they play a part on how much your offer will be for the seller. Being ignorant about these factors can be costly!

Time Limit

Always place a time limit on your negotiations with the seller. I always place a forty eight hour deadline on the seller. This puts pressure on them and make them act hasty. This tactic also makes them feel like they need me more than I need them.

I like to think of negotiators as either the sellers or buyers. Buyers are the people who need solutions and sellers are the people who are providing the
solutions.

Ego

Always keep your ego under control. I do and it has worked well for me. It will work well for you!

Vulnerability in real estate negotiations is something that you should try to protect yourself from. It is also a indication that you should try to leverage if you sense it within the seller. Just remember that practice will make you better.

Original article by Wilbert Wiggins.

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