Start Out Early The Factor of Power
The Three Elements
Gather Information
The Factor Of Time
Be Generous When Selling
APPROACHES TO REAL ESTATE NEGOTIATION BRUCE KELLOGG
Start Out Early The Factor of Power
Negotiations begin at the first encounter ( e . g ., phone inquiry ). Many people think the initial pleasantries are just that , and the formal negotiations will begin later . Not so . The superior negotiator will have already begun gathering information and setting expectations . Start early so you don ’ t have to catch up .
The Three Elements
There are three elements to any negotiation : 1 ) Information , 2 ) Time , and 3 ) Power . These will be described below .
Gather Information
The negotiator who gathers the most information usually has an advantage . Interview people , obtain reports , do inspections , use the MLS ( MultipleListing Service ) and other online resources . Hire a private investigator on the seller if the deal is large enough , looking for vulnerabilities ( e . g ., bitter divorce ). You can ’ t know too much .
The Factor Of Time
It helps to know if the other party has any time constraints , along with your own , of course . Pending foreclosure , divorce , condemnation proceedings are some examples . If the property is “ a steal ”, scoop it up fast . If it ’ s priced at or above “ market ”, then “ grind real slow ”. Use time to your advantage .
In some negotiations the power levels are uneven . One party has more leverage over the other . Seasoned negotiators assess power levels and devise strategies to take these into account . Then , even the weaker party can optimize its outcome .
Be Generous When Selling
Some sellers believe in “ Win Lose ” negotiating . They want “ top dollah ”. This apparent greed and intransigence grates on everyone involved , sometimes to the extent of legal action or retaliation . Be generous when selling . Paint that bedroom . Purchase a Home Protection Plan for those firsttime buyers . You ’ re on your way to wealth . Don ’ t be cheap !