Real Estate Negotiating - How To Get What You Want

By Morgan Rice, Sales Associate with Macdonald Realty Ltd. (Squamish)

If you are buying or selling real estate you will eventually end up in a negotiation with another party. Negotiation strategies and attitudes are important to the success of the deal. Think about a negotiation as a “win-win” situation.

Separate the people from the issues. Don’t allow emotions into the negotiation and focus on the shared interests of the parties.

Try and identify all of your own specific wants and needs. Don't focus on the price.  Think of alternate bargaining chips to use instead of just haggling over price. An example of this might be a compromise on the possession date for the buyer of the home. Changing the important dates of the contract to suit the needs of one of the parties could help smooth out a standoff on price. Ask the seller to include the leather couch from the living room... you need a new one anyway. Broaden your options.

Ask for an explanation of the offer that is being made. This will allow you an opportunity to learn about the interests of the other side. This can also expose offers that are not supported by current real estate market conditions.

Allow the other side to participate in the process and make offers that are consistent with their needs. Even if you have the upper hand such as in a buyer’s market construct a deal that allows the other party to save face. Try to make solutions that have compromise on both sides of the negotiation. Avoid an outcome that has a winner and a loser.

What is your next best alternative to the current property you are trying to buy? This can take the pressure off you to complete the current deal. Is there another buyer interested in your property for sale? Focusing on the available options can help you make clear decisions.

The key to successful negotiation is to break up the deal into smaller issues that can be managed or trade-offs made. Weigh your alternatives against the benefits you stand gain by completing the deal. The most important thing is to not dig in your heels at the price. Keep your perspective on the goal of buying or selling.