Negotiation

Control Your Emotions During Negotiation By Being Prepared!

The biggest mistake property buyers make during the negotiation phase is that they don’t prepare themselves properly. The best negotiators are the best prepared. It’s important to walk through what happens during your negotiation with your real estate agent, so you’ll never be surprised. The first step is to study the potential trading range for your property and understand the buyer is most likely to start at the lower end of that range, unless the market place is so competitive there are multiple offers by default.

The Final Price Will Fall Within The Reality Range!

Your final purchase price will most likely fall within or close to the reality range of what the market will actually command, so be certain to study the potential range with your buyer agent before a negotiation. When you’re aware of this range, you’ll avoid overreacting negatively to an offer rejection. The next step is to prepare yourself to be involved in the process of counter offering to keep the discussion moving. It doesn’t matter where a seller begins their first counter offer; it only matters where they end up. Unless the property is a true distress sale, your harsh negative responses to the seller might end the process prematurely, even when obtaining a favorable purchase was still possible. Every seller must experience their own process, and many will improve their willingness to compromise when they encounter a positive, inviting reaction.

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Don’t Overthink & Stay Connected With Why You’re Buying!

Most buyers try to read too far into the negotiation techniques of the seller and become too easily offended. Don’t overthink what the seller’s strategy might be; rather, realize it’s just a business transaction, and the market place is simply trying to find the true current market value for your property. The key to staying calm and professional during your negotiation is to stay focused on why you’re buying in the first place, so you continue to move towards the goal of a successful purchase.

Everybody Has To Agree In The End So Think Win-Win!

Remember, at the end of any property negotiation, both buyer and seller have said ‘yes’ and agreed to a meeting of the minds on price and terms. Neither party will feel they’ve achieved a perfect deal, because there is no such thing. The final deal is influenced by so many variables that it’s impossible to experience a perfect negotiation. The best thought process is to be thankful that a ready, willing, and able seller has agreed to sell you their property, which, ultimately, is a win-win situation.

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Conclusion

We realize preparing to negotiate the purchase of a property can be overwhelming, so please contact us to discuss the matter further.

Understanding how to negotiate the purchase of a property will set up course module #6, where you’ll learn how to prepare for the closing process, so you avoid the loss of your deal.

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