If you have a good negotiation strategy in your mind then Real Estate negotiation process can be an exciting experience. There should be some basic rules by which you can identify that you are going in the right direction and doing fair deal in time of negotiation of buying property.

• Target Price Determination: You must fix up a target price in your mind in the time of negotiation to make the deal effective. But you need to quote your price by balancing the current market price and your capacity. If the price that you have quoted is fair enough then you can definitely be strict on it at the time of negotiation.

• Offer less than your expectation: You should always give lesser quote than your expectation in the time of negotiation. If you don’t know anything about negotiation or you never heard of negotiation strategy then also this process of making lesser price always helps to reduce the respective price by some percent.

• Bracket your offer price: This means you have fixed up your mind for the negotiation and obviously the price that you are going to quote. You should quote the price low in the opening position. It can be understood by an example, if the asking price is $60000 and you have targeted a price of $50000, then you should bracket your price at $43000 rather than $45000. In this way you have greater chance of obtaining the property at below or at your target price.

• Splitting the difference: Never split the difference in your offer. For example if you are making an offer of $80000 and the other party (seller) asking $120000, here the result of effective negotiation should be around $100000. But if you split the difference of your offer too quickly, then the negotiation will be between $100000 and $120000. Here the result may come around $110000. That means you are losing $10000.

• Gain something beyond price: Once you have finalized the price, see is there any possibility to gain anything more out of the deal. A unique way can fetch something for you.

Try to negotiate with the sellers when you buy property following the above mentioned rules. It will help to get your targeted property at low price.

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This entry was posted on Thursday, October 11th, 2007 at 7:18 am and is filed under Real Estate. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.