Negotiating a Real Estate Deal in Today’s market.

I’m sensing some trepidation with respect to negotiating in today’s business environment. There are so many “What ifs” and changing lender requirements and uncertainties.

What’s the secret to over-coming these fears and negotiating with confidence and conviction?

How can we keep our clients at ease if we are not calm, cool, and collected?

First and foremost and throughout the experience, whether you are the Buyer, the Seller, agent, lender (whoever) don’t EVER lose sight of the fact that Buying or selling a home is a PROCESS and NOT an EVENT!

With that in mind, understand that this process does not flow in a vacuum. There are myriad “outside” forces swirling around in this complex business environment all of which individually and combined have potential for complicating or altering the process at any time.

Everyone involved in the transaction has his/her own “story” humming along in the background whether it be personal issues and needs, or level of experience, or the fact that she missed breakfast this morning.

Here’s a dose of reality! The Buying or Selling of a house has ALWAYS been a process (not an event), so blaming emergent issues on the National Economy isn’t productive use of your energy. It is what it is and has always been – an “outside force” that is in perpetual transformation (like the weather) . . . an uncontrollable.

We must work THROUGH these emergent issues just as we don rain gear when it rains.

There’s no negotiation until someone makes an offer . . . I don’t remember ever seeing a rule book, and I am certain that if there were a rule book there would be no requirement for the Buyer to always be the one to make the initial offer . . . Sellers can make offers to Buyers who appear to have an interest.

What the initial offer is . . . is not relevant. Doesn’t matter to me if the price is 5% or 30% off the mark or if the timing is good or any other pesky details . . . I’m just thankful to have an offer . . . The negotiating part of the process is when those details can iron out.

I LOVE negotiating because I know that if I am negotiating all parties are significantly closer to success simply be the nature of the fact that there is a conversation happening.

What keeps a negotiation alive is not 100% the responsibility of the professional negotiators. The motivation of the “Parties” to the negotiation is the fuel that keeps it going. We cannot create motivation . . . we CAN stoke it with continual encouragement and reminders as to why we entered the negotiation in the first place thereby keeping eyes on the ball (the goal). 

Drama works against the parties in a negotiation. Emotional balance will prevail. Those who allow their passion to overcome reason have a high probability of impulsively blowing the deal or agreeing to unrealistic terms and often harbor resentment . . . Resentment is unhealthy.

Statistics (Comparables) are not much more than the kindling that provides the base of the negotiation. They give us a base camp from which we can operate (originate) . . . a point of reference . . . don’t forget that motivation – when What the buyer is willing to pay is in alignment with what the seller is willing to accept is the end game.

I’m of the opinion that there’s no value in ugliness in a negotiation. We either Agree to agree or we don’t. Persistence is a good thing because sometimes it takes some folks to “see the (your) light” . . .

I see each negotiation as being a living and breathing organism . . . Breathe in and breathe out . . . Hyperventilate occasionally . . . a little breath holding . . . some biting of the tongue . . . As long as the patient is breathing, there’s a reasonable chance of success.

I could proselytize for another 12 pages (or so) . . . Suffice it to say that I LOVE negotiating in ANY market environment.

How ’bout you?

I’m just sayin’

Best,

b

PS – I could always use more practice so if you know anyone thinking about Buying or Selling a house in Middle TN, contact me so we can get the process started 🙂

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About Barry Owen

Residential Real Estate Principal Broker and Founder of Pareto Realty, LLC. Creating the quintessential real estate firm with emphasis on "Live, Work, & Play" balance . . . and a true Performance Oriented environment for Real Estate Professionals. Serving the Real estate needs of Home Buyers and Sellers in Middle Tennessee.
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