Real estate negotiations might be the most intricate business deal or interactions any of people ever be involved in. These negotiations skills will have the ability to break a deal and push your aim in real estate.
In order to master the real estate negotiations, you have to learn and understand the basic of negotiation and communication. Therefore, in this article we have sum up FastExpert advice on negotiation best practice and strategy for beginners. These professional tips will help hone your skills and be ready for the next real estate deal.
Let’s jump right in to FastExpert best practice and advice;
Define Your Expectations
Before starting in any negotiation space, you have to decide what you and your customer expectations from the deal. Because winning isn’t always about gaining top dollars.
For example, if a FastExpert represents a client who has to sell their house because of a divorce, job relocation, or any kind of life-changing situation. Then, money will not be the priority.
Take Advantage of Escalation Clause on Offers
The purpose of using an escalation clause is to win the deal among other offers. The situation happened by automatically increasing sellers’ real estate offer.
If a buyer is in love with a house and agrees to make an offer in $200,000. As a savvy real estate agent, you acknowledge that the home is well-located, well-maintained, and there must be a competition.
Then you need to offer your buyer an escalation clause. As if he really wants the house, he has to counter increment for about $2,000 above other offers, up to the maximum of $230,000.
Apply a Conditional Offer, Depends on Market Data
Let’s say you represent a buyer who falls in love with a $500,000 house. After doing a market research, the house only valued $430,000.
During the real estate negotiations, the seller insisted on refusing your offer. All you have to do during the situation is convince the seller to make a conditional offer.
Contact the homeowners and inform them, “You are asking for $500,000 deals, but I will doubt you will get any higher than $450,000 offers. If you don’t get any better offer than mine in 60 days, we close the house at $450,000. Sounds like a deal?”
If the seller agrees, you need to write up the conditional offer and forward it to them.
Offer Based on Current Home Market Value
If you hate the on long negotiations, you can always make an offer based on the home market value. Calculate how much the house is actually worth by doing a comparable property analysis. Cut the bait quickly by taking the amount and use it as your initial offer.\
Find the Sellers Bottom Line
This strategy may be difficult, but is great for real. To start, research the house market value and make ridiculous real estate negotiations by offering 20-35% below market value.
You may get a very unpleasant response from the sellers, but keep doing it until they reveal how much their bottom line is. After that, apologize for your rudeness and easily offer them the amount they mentioned.
Find Out Their Reason for Selling the House
If you get a circumstance of meeting the homeowners directly, take the guts of asking the question about why they would sell the house. Acknowledge the reason can give you great insight about what they want to get from the real estate negotiations (as we learn in strategy 1).
It may present to you the information whether they already have a home to move or not, or need to move out quickly, and such. You can use the information to get the most favorable potential deal for your client.
Doing market research will be a good step to real estate negotiations, but you still have option to get professional help. In this case, reach out to Fast Expert for more beginners guide and advice about real estate. FastExpert will direct you to every real estate transaction and help you negotiate the best price for your next home.