There’s a lot that can be said for real estate negotiating techniques as far as how much of a powerful skill it can be in the arsenal of the real estate investor. In fact, it may be the very most important skill you’ll employ to build wealth in real estate. Here are some tried and true real estate negotiating techniques I’ve used and observed (and had used on me).
91. “Yes”. Just say “yes”. Don’t elaborate once you answer and concede a point. Go right back into questioning THEM. Regain control.
92. “If you and I can’t do business today, what will you do with the house?” Learn to find the problem and remind them of it.
93. Understand perceived value. Use it. This is a powerful negotiating technique. Just because it’s not important to you doesn’t mean it’s not important to THEM. Find out where their perceived value lies and offer it to them- at a price.
94. There is no such thing as a non-negotiable anything in business (with few exceptions). Always ask. Always push.
95. Know when to use LEVERAGE and how. For just one example, I use leverage in one way by working with a BUYING GROUP that negotiates with developers to buy properties in bulk, at a discount, and with terms no one else gets. Why? Leverage. Well, and negotiations…;) But I repeat myself…
96. My definition of “negotiations”: “the strategic application of leverage in conversations that s value to translate into action by bringing about an agreement in principle among two or more parties, the objective of which is to gain more than you give (while having the other party believe the same)”.
97. Write “FIRM” after a cash offer you make as a buyer. People are less likely to challenge this in real estate negotiations.
98. Always follow-up. Circumstances change. Your rejected offer of three months ago could look great today. Follow-up. Follow-up. Follow-up can be key if you want to build wealth in real estate.
99. Strive to let the other guy believe he got the best of the deal (or at least as good of a deal as you did). No one likes to think they lost.
100. STOP taking what others- brokers, realtors, buyers, tenants, investors, businesspeople etc.- say as if it is a fact. Do your own due diligence and analyze independently.
101. Learn to use the “verbal flinch”…and follow it up with “Is that the best/least/most you can do?” I can attest that asking this one question makes thousands of dollars out of thin air. But, alas, you have to HEAR it to really understand…
102. If you get an answer on price or terms you don’t like, LAUGH and say “Funny…what’s your second choice?” This is a fun real estate negotiating technique.
103. Learn to verbally pace people’s language patterns (fast/slow, high/low, mellow/intense) to build rapport and trust- people like doing business with people who are like them and talk like them. That’s some Jedi-level verbal judo I’ve yet to meet anyone master…but even just becoming consciously aware of it can make you a better negotiator.
104. Remember that knowledge is not power. APPLIED knowledge is power. Apply what you know.
105. Use “If I could do X, would you do Y?” Use it at every opportunity.