By: Ralph Kramer is an avid fan of PK Property
Fear abounds in many of today’s critical business transactions. With all the upsetting reports surrounding the most significant financial systems in the world together with other global struggles that seem remote but, for some reason, threaten local businesses, many can’t help but be enormously anxious about their finances. One of the industries always impacted directly by global problems is real estate because it’s one of the structure of the business sector and people see it as a vital asset that determines their financial and social status. In times of hardships, a real estate property can verify to be both a legal liability and life saver.
Most of the time, when the economy is bad, many householders are motivated to market their properties in order to keep their finances afloat. Those who are more secure monetarily make use of the “threatened” situations and acquire properties at attractive bargain prices. But in the often complex procedure of selling or buying a property, a real estate negotiation can prove to be rather gnarly, especially in the absence of a real estate specialist. Real estate experts discuss, however, that as long as each party understand the principles, a negotiation can actually go rather “smoothly.”
What are the fundamentals? Below are three basic principles sellers and buyers must uphold to ensure that negotiations work to their favor:
1. Pay attention and let the other party speak up first. While many find this a rather fearful approach, this often turns out to be beneficial to the listener for it will allow him to define a mid-point. The principle is greatly comparable to how prices are agreed upon in a pawnshop; generally the owner begins with a steep selling price then the buyer goes for a great deal; the seller then decreases his asking price and the buyer ups his, until they both finally decide on a price. One thing to take note of here is the party who’s first to give a price is always at a disadvantage to the one who decided to listen first. Another fundamental thing about paying attention first is that it’s a polite act. It expresses that you respect the other party highly and you desire to completely understand what they have to state - this is often a deal-maker in any type of negotiation.
2. Do your homework. Get all the necessary data obtainable including sale prices of similar real estate and how long the property’s been up for sale, etc. Always remember that details is power and you can even offer it in the most specific manner that will give you an upper hand in the negotiation. The deal can be closed without further parley; you get to conserve precious time and energy.
3. Acquire the last concession. This has everything to do with you dictating the terms of the discussion without the other party fully realizing it. This will prevent them from seeking more from you for doing so will also provide you with a chance to request something from them.
Fear abounds in many of today’s critical business transactions. With all the upsetting reports surrounding the most significant financial systems in the world together with other global struggles that seem remote but, for some reason, threaten local businesses, many can’t help but be enormously anxious about their finances. One of the industries always impacted directly by global problems is real estate because it’s one of the structure of the business sector and people see it as a vital asset that determines their financial and social status. In times of hardships, a real estate property can verify to be both a legal liability and life saver.
Most of the time, when the economy is bad, many householders are motivated to market their properties in order to keep their finances afloat. Those who are more secure monetarily make use of the “threatened” situations and acquire properties at attractive bargain prices. But in the often complex procedure of selling or buying a property, a real estate negotiation can prove to be rather gnarly, especially in the absence of a real estate specialist. Real estate experts discuss, however, that as long as each party understand the principles, a negotiation can actually go rather “smoothly.”
What are the fundamentals? Below are three basic principles sellers and buyers must uphold to ensure that negotiations work to their favor:
1. Pay attention and let the other party speak up first. While many find this a rather fearful approach, this often turns out to be beneficial to the listener for it will allow him to define a mid-point. The principle is greatly comparable to how prices are agreed upon in a pawnshop; generally the owner begins with a steep selling price then the buyer goes for a great deal; the seller then decreases his asking price and the buyer ups his, until they both finally decide on a price. One thing to take note of here is the party who’s first to give a price is always at a disadvantage to the one who decided to listen first. Another fundamental thing about paying attention first is that it’s a polite act. It expresses that you respect the other party highly and you desire to completely understand what they have to state - this is often a deal-maker in any type of negotiation.
2. Do your homework. Get all the necessary data obtainable including sale prices of similar real estate and how long the property’s been up for sale, etc. Always remember that details is power and you can even offer it in the most specific manner that will give you an upper hand in the negotiation. The deal can be closed without further parley; you get to conserve precious time and energy.
3. Acquire the last concession. This has everything to do with you dictating the terms of the discussion without the other party fully realizing it. This will prevent them from seeking more from you for doing so will also provide you with a chance to request something from them.
