Negotiating Real Estate – Go Slow

When you are negotiating real estate deals, it sometimes assists to go slow. Locate out why.

Why should you occasionally go slow when negotiating real estate deals? It’s all about the power of time investment. Let me explain with a story.

One of my less-pleasant experiences selling real estate was when I sold a house for a real decent guy, and also the buyer was a lawyer. I was new to real estate, and this lawyer knew all the angles. Without getting into all the dirty tricks he utilized, I’ll just say that the buyer had everyone involved angry, frustrated and worn down.

As a final blow, he arbitrarily decided that he wanted the cost lowered by an additional $5,000. Now that’s hardball negotiating. The seller was virtually ready to throw away the entire deal, but he had been attempting to sell the property for two years, and we had been working with this buyer for months. None of the agents or brokers involved wanted to see all their effort go for nothing.

There had been 3 agents under two brokers involved in the sale. We all agreed that suing the buyer wasn’t worth it. Instead, we gave in. The seller had enough of the buyers tricks, so every of the other five parties to the sale (three agents, 2 brokers) agreed to every forfeit a $1,000 of the commission, just to make the deal close.

This is an extreme example of using “time investment” to your advantage. After investing so significantly time, none of us wanted to lose everything. The lawyer knew that, and employed it. In this case, there was nothing in the contract that allowed him to renegotiate the price, making it unethical in my mind. Still, it was effective.

Negotiating Real Estate Deals – Ethically

In other cases, it’s just great negotiating. In case you desire to get the best price on a automobile, do you believe you’ll get it after spending two minutes with a salesman? Let him invest two hours showing you cars, and he’ll be begging the manager to let the vehicle go for your low supply. The exact same is true with real estate negotiation.

Remind the seller about time, to let him bear in mind the time he has already invested. To do this politely, say some thing like “Look, neither of us wants to lose the time we’ve spent on this and start all over, so why do not I…” Then supply some modest concession.

He is subtly warned that he could lose his whole time investment with nothing to show for it. The words “start all over” might even scare him. You set the scene, and then you provide a way out. This is non-offensive too, if done correct. You say “Neither of us…” to let them know you’re both inside the same scenario, and it’s not just you threatening them.

This is, naturally just one technique of many for negotiating real estate deals. Take the time to learn various, at least.

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