There is an art to getting a good deal. Inexperienced negotiators often make mistakes that would have been easy to avoid if they had taken the time to study bargaining techniques. There are a lot of little tricks that can help, but there are a few fundamental tips that everyone needs to remember.
Understand What People Want
Finances will be a factor in every negotiation, but there are often a variety of other concerns in play. For example, a person may need to make a deal quickly so they can move before they start a new job. Understanding those factors makes it possible to tailor an offer to the individual and their needs. That will make it much more appealing to them. It can also lead to a much better deal, since appealing to those special needs to balance out a higher price or other parts of the deal.
Study the Law
The real estate market is subject to a variety of rules and regulations. For example, it is generally illegal to take religion, gender, and a variety of other factors into account when deciding on a deal. It is vital to understand all of the laws before making a deal in order to avoid inadvertently breaking any of them. When in doubt, it’ a good idea to get advice from a professional in order to prevent potential problems.
Offer a Carrot
The best way to close a deal is to sweeten it when the other person is on the edge of agreeing. Offering a small concession at that stage, such as adjusting the date of the sale or rent, or slightly reducing the price, are is a good step towards a final agreement. Most of those concessions are cheap to offer, but they make the other person feel good about the deal. That will put them in the mood to reciprocate.
Remember the Objective
Both parties will always be trying to get a deal that favors their own interests. Smart negotiators recognize that and take steps to make sure they don’t get talked into a deal that hurts them. Going into the meeting with a clear understanding of every objective ad a set of firm lines that will not be crossed can help to make sure that doesn’t happen.
Best of luck in your next property negotiation!