Tuesday, October 24, 2017

Mediation and Negotiation Skills In Real Estate

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Real Estate Negotiations

3 Tips In Negotiations For Brokers

1  Commissions

2.  Services

3.  Agents

 

Commissions

Real Estate is very competitive field when going out to secure a contract to sell and / or buy homes.  You must be able to sell yourself  and the services  your company will be providing to clients positively.  

Services

Your clients must see the value in what you are providing to them.   Not only are you seeking best commission for yourself; it is imperative you seek negotiations that is a win win for all parties.  

Agents

Brokers and its agents negotiate on commission they receive at its agency.   A broker who has a very active and productive agent may want to negotiate a larger commission or reward their agents with bonuses for securing a highly profitable account.  

Negotiations in real-estate deals objective finding a term agreeable on both sides in order to close a transaction.

6 Tips In Real-Estate Negotiations

1.  Client Needs

2.  Knowledgeable in real estate legality

3.  Set realistic goals

4.  Preparations

5.  Offer

6.  Win Win Solution(s)

 

 3 What Factors of Most Buyer:

1.  What you want

2.  What you are willing to spend

2.  What you are prepared to spend

 

When negotiating, the negotiator should know the needs of the client.

Legal knowledge is important, since the negotiator should be able to identify the legal processes that could be done to achieve the client’s needs.

Negotiators are usually real-estate lawyers, although real-estate agents would also negotiate for their clients.

It is important to be informed, prepared and set realistic goals or objectives.

As a buyer you would have to be properly informed on how much the property would cost.

Compare similar properties which are already sold.  This is called Comparable Market Analyses or CMA. In CMA, the condition, size, number of rooms of both houses would be compared.  

You should come to the table with what you are willing to spend, what you are prepared to spend and what you want. 

 

tipsforsuccesswithlynnegotiations

 

After being informed, then you would have to prepare for the negotiation.

You could start by setting a realistic amount of money you are willing to spend on the property.

When making decisions about buying or selling a home, never let your emotions get ahead of you. Follow and execute the plan.

There are different real-estate negotiation tips that would make both the buyer and seller satisfied.

  • Come to the table with an offer and be prepared with a counter offer if necessary.  (know your highest and lowest offer you are willing to give)
  • Ask questions and state their expectations, be confident when answering. 
  • Remain professional
  • Be prepared with a presentation to verse the buyer with valuable informative information.
  • You do not have to say or show how desperate you are to purchase the property.
  • Be straightforward with your win-win solution and be prepared to counter their arguments.
  • Look for loopholes and weaknesses which would help turn the table around.
  • Be realistic. Do not overprice nor underprice. Usually, a buyer would have to spend a little more than what you are willing to, to get the house and the property that they would like to have. Asking for a very low price is like an insult to the person who is selling the property.
  • When starting with the negotiations, it is better to correspond with written documents. Oral commitments cannot stand or are not duly recognized as a binding agreement by some states.
  • Listen carefully.  Respond appropriately. Do not fret over small details.
  • Deal with situations as they arise.
  •  If the transaction would not push through, then major things should be credited with the failure.

In real estate negotiations, it is compromise that would work and enable both parties to close the deal.

Start with the points that both agree on and deal with the differences later.

Look for common ground for both parties to come up with a win-win solutions.

 

Resources: 

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Additionally, Strongbrook shares its knowledge through a growing selection of educational programs and events.Strongbrook is led by a seasoned team that combines decades of successful investment and business management experience.

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