Negotiating Your Best Deal
4 Tips for getting the right price on your next real estate investment
In most places in life, the price of things is final. You don’t haggle with the cashier over the cost of your butter. You likely won’t ask for a better deal on that new TV or new running shoes. Like most of us, you will either wait for a sale or buy the item at full price.
Americans usually pay the marked price. But there are products in our country where you can negotiate a better deal. Real estate is one area where negotiation can make a difference between making a good or poor investment.
Many new real estate investors that I talk with find themselves under-equipped to negotiate as it’s not something most of us do. Here are four tips I want to share with you to help you become a better negotiator.
Do Your Research
Success in negotiation drastically increases through data and research. I’ve met people who think they can talk their way into the price they want using their influence and charisma. Sometimes a persuasive person will get their way through sheer force and charm, but an investor who worked at their research will win 9 out of 10 times.
Do you know what the market is doing or projected to do in the area you’re investing? Do you have a good sense of your finances and what you can pay to remain profitable? Do you know why the property is up for sale? What are other comparable properties going for around you?
Knowing these facts will provide solid footing under you as you look to negotiate your best price.
Stick To Your Plan
Not only do you need to do your research, but you also need to have a plan. What will you offer at first? What will you do depending on how the seller responds to your first plan? What other steps will you take, or what enticing extras will you throw in to get your best deal?
Create a plan and stick to it. If you are too eager to purchase a property, you might agree to something you’ll regret. Crafting a plan and sticking to it can help remove overly emotional decisions, leading me to my next tip.
It’s Not Personal
Remember not to take anything that happens in negotiations personally.
Business is business, and if someone rejects your proposal, it shouldn’t hurt your ego or pride. If we get caught up in losing out on our best deal or feeling personally slighted, we can damage the current agreement, even affecting our reputation.
If the seller goes quiet or doesn’t get back to you quickly, keep your emotions in check. Don’t get overly anxious or upset. Real estate investment is a process. Don’t panic, and don’t jump ahead of your plan.
Be True to You
As you learn to negotiate, you will hear tips from many people, myself included. Some will tell you to act one way while others will advise you to do almost the opposite.
There is no one way to negotiate your best deals. What works for one person might not work for you. It’s best for you to know yourself, how you function best and stick with your strengths.
Some investors negotiate by low-balling while others promise to beat any price by $10,000 up to a certain amount. Someone will try to get a fantastic deal for themselves while another will look for both parties’ benefit.
I hope you try many different strategies for negotiation. You will never know whether something works for you if you don’t give it a chance, at least once. But at the end of the day, you have to feel good about how you’ve done your business.
Be true to you.
If you want to grow in your negotiation skills and would benefit from discussing your specific concerns with me, book your consultation here.