Dumb Dumber
The Art Of Negotiating A Perfect Real Estate Deal by Michael Taylor
In order to be able to negotiate a perfect real estate deal you must make sure that your negotiation proceeds in line with the under mentioned principles.
1. Always get the other side to commit first – When you are into serious negotiations you will be better placed if you steer the talks in a direction that makes the other party commit their position before you are required to make a commitment from your side. There are many valid reasons for this.
You may find their first quote more advantageous than the offer you intend making from your side.
You gain the advantage of being aware of their position before disclosing your position.
It allows you to split the difference between your price and their price and close the deal on terms suited to your advantage rather than put yourself in a position that lets the other party gain control over the negotiations to let it end to their advantage by revealing your position first.
2. Always make sure that your first offer is less than what you are finally prepared to pay- When negotiations reach a stage where you are required to make an offer be careful to quote a price that is below the actual price that you are willing to pay. This will ensure that you have enough space for bargaining to close the deal.
3. Maintain a dumb facade- This is important as people feel comfortable when dealing with others less intelligent than themselves in matters concerning real estate. In short, the dumber you appear, the greater are your chances of clinching the deal. Therefore avoid projecting a personality that can be credited with a sharp intellect. In fact, appearing helpless may very advantageous for you in a real estate negotiation.
4. Downplay your authority level -When things appear to be heading for a deadlock on some particular point you can stall the negotiations to prevent them reaching a no return position by saying that you cannot take a decision all by yourself and would need to check on the issue with your wife/other family members or your partner. This may be more acceptable to the other party as it is easier to accept that you are helpless in doing something rather than take your unwillingness to do it.
5. Try to know the seller’s deadlines and use them to your advantage during negotiations- The other party may be under pressure of certain deadlines, such as a time deadline because he wants to move his child to some school at a new location and wants everything finished before the commencement of the new school semester. As the seller’s deadline approaches, he will want the deal closed. This is when you press to get advantage important for you. For example, price may be your highest priority in the deal. Now your quoted price will invariably be subject to inspections of the property, which usually takes a lot of time. Therefore, you should work on all aspects of the deal, but let the inspections linger. When the seller wants to close, you can tell him that you are ready to close the deal in the absence of the inspections but the price will have to be readjusted and quoted the price you want to pay. More often than not, the seller will agree under pressure of meeting his deadline.
About the Author
Michael Taylor is the broker/owner of Rebate Real Estate in Indianapolis You can visit his Indianapolis homes, Carmel Real Estate, or Fishers Indiana real estate sites for more information.
Dumb and Dumber: Pepper scene
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