In this business it is extremely important to learn how to negotiate with others. It has to be a win-win situation for all the parties involved but there are many different types of items that need to be negotiated. Along with price, there are fees, terms, conditions, and add-ons that you may be able to negotiate so that you can put all that money in your pocket not in someone else’s.
For example, you may need to negotiate price reductions, extensions, fees from attorneys or accountants, and even repairs with contractors. This is a relationships business and you are going to be talking and dealing with a lot of people within the business. However, everybody in the business has a fee and negotiations have to be a win-win situation. This doesn’t mean though that you have to pay full price for everything that you need. Negotiating is key for success in this business because through it you can always make extra money or profit, and possibly save yourself thousands of dollars.
For example, price reductions are an amazing way that we have been able to save a lot of money in real estate. We’ve learned how to negotiate price reductions to get the properties cheaper because of things the owners already know. If you know how to explain these things properly in a way that demonstrates how they are going to affect the price or value of the property, you most likely will get the property for less money.
For example, say the property has a leaky roof. If you tell them that the roof needs to be repaired and explain how much the repairs going to cost, you can negotiate a lower price and possibly pay anywhere from one to three thousand dollars less, or possibly even less. It all depends on the situation.
You can negotiate other items like extensions. Let’s say there is a closing happening in twenty days, but you don’t have the funds ready or your buyer doesn’t have the funds ready. One way to negotiate extensions is to state that you are willing to extend the closing for another one to two weeks due to whatever the issue is; being out of town, or that the money is coming in from out of the country.
The point is to negotiate by using price or conditions so each party has a give and take. The win-win is a nice balance for everybody and everybody ends up happy. Negotiating terms and conditions are as important as negotiating price.
So in the business of Real Estate, negotiating skills are an absolute must! To not only negotiate purchase or selling price, but to get the best terms and get buyers and sellers calling you first when they have a deal, is crucial. If they like to work with you because you make every transaction easy and a win-win situation for them, they will keep calling you. Being able to negotiate every aspect of the business can make you thousands of dollars that you didn’t even know that was available.