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How to Negotiate Real Estate

6 Simple Tricks for Winning a Negotiation Stalemate
By Laura Agadoni | February 18, 2015

If you and the potential buyer are at a stalemate regarding price, get creative and start thinking out-of-the-box for a solution.

Learn how you can not only play the negotiation game, but also win.

When my husband and I were buying our first house in Georgia, I cringed at the tough negotiating he was doing, as did our agent. “You sound like a fast-talking big city businessman,” she said to him in her smooth drawl.

But as cringe-worthy as it seemed at the time, he was just engaging in some tried-and-true horse-trading — trying to make a deal that both sides could feel good about.

You might be the type of person I was, the kind who never questions the price of an item. (I didn’t exactly shine at garage sales.) But once you learn how to handle negotiation encounters, you can prosper.

When selling your home, your first reaction might be a big “oh heck no” when you get a low offer on your asking price, but take a deep breath and at least consider your options.

Here are six tips for not only playing the negotiation game, but also winning.

1. Price it right

There’s a difference between the price you want to get (or what you think the house is worth) and what the market will bear.

“Pricing is not based on how much a seller needs to net,” says Brian Horan, a Los Angeles real estate broker. “Sellers always seem to need a certain amount, but that has nothing to do with the price of tea in China.”

Look at neighborhood comps to give you a more realistic idea. Find a savvy real estate agent; she should be able to provide a benchmark for asking prices that reflect market valuations.

2. Consider the first offer

Chris Leavitt, star of Million Dollar Listing: Miami, says, “Really pay attention to your first offer because that will probably be your best one.”

Leavitt, who once sold a Miami Beach condo for $34 million, the highest condo sale in Florida history, knows a little something about negotiations.

“Your best offers usually come at the beginning, so it would be a mistake to not listen to those offers, regardless of what they are,” he says, adding that sellers “shouldn’t be insulted because that offer might actually be the right price, the market price.”

3. Think like a salesperson

Patrick Malone, senior partner at The PAR Group, says, “All home sellers should establish their BATNA before listing their house for sale.”

No, he didn’t say you need to become Batman. “BATNA” stands for “best alternative to a negotiated agreement.” This is a negotiator’s fallback option in case there’s no deal.

Having a BATNA puts you in a stronger negotiation position. Maybe you’ve decided that if you don’t get your bottom line, you’ll rent the place and try again later, or maybe you’ll renovate and stay.

Keeping your BATNA in the back of your mind can help prevent you from agreeing to a bad deal out of desperation.

4. Don’t get emotional

It’s probably best not to listen to Miranda Lambert’s “The House That Built Me” before you enter negotiations with a potential buyer.

Garratt Hasenstab, managing broker with the Verdigris Group, says you need to stay levelheaded throughout.

“This is business, simple as that. There is no call for emotion. Rational thinking, business skill, and negotiation skill are what it’s all about.”

Hasenstab also recommends your real estate agent find out the buyer’s prequalification amount from the bank or what the buyer’s desired purchase price is. The more information you have about a buyer’s financial situation and needs, the better you can bargain.

5. Be realistic

Being stubborn is usually not the best strategy in any negotiation. If your goal is to sell, taking less than your ideal price is better than not selling at all.

Glenn S. Phillips of Lake Homes Realty says, “Sellers must account for the real cost of not selling — not just a monthly mortgage payment — but utilities, insurance, maintenance, yardwork, and risk of vandalism or theft.”

Once you know the total cost of keeping your home on the market each month, it might put offers, even the lower ones, in better perspective.

6. Embrace creativity

If you and the potential buyer are at a stalemate regarding price, it might be time to entertain some out-of-the-box ideas. Chris Leavitt suggests you offer to throw in the furniture.

Glenn Phillips asked for some extras when buying his first home: the riding lawn mower, the window treatments — and even the dog.

And it paid off: “Mikey the Mortgage Dog has been one of the best dogs ever.”



91 Comments to How to Negotiate Real Estate:

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essaymama.com writers on Wednesday, August 22, 2018 11:23 PM
Next week, my sister will sell her house for eight hundred thousand US dollars. She asked me to find a client that will buy her house and lot. But my communication skills are not that good, but not that bad also. So I decided to look on the internet some tips on how to win a negotiation. Luckily, I saw these tips and I am currently studying how to make it right. I hope the client will buy my sister's house and lot.


www.resumesservicesreview.com on Friday, October 12, 2018 4:45 AM
I think it is very difficult to negotiate in buying in a real estate business, why? Well, it might depend on the location and the neighborhood you are buying. The better the place and neighbor the higher the value. It also depends on the owner, if the price is negotiable, you can try talking with the owner to get some extra discount on the place. Anyways, your article will really help people get some good tips in negotiating.


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Marathon Group introduced new project Marathon Neo Hills at Bhandup located in the heart of the Bhandup, Mumbai. Marathon Neo Hills at Bhandup is surrounded by lush green garden where you can meet scenic beauty of nature. Marathon Neohomes Neo Hills at Bhandup offers well designed 1 and 2 BHK spacious luxurious apartments including all the world class amenities. Marathon Neohomes Neo Hills at Bhandup is based on modern architecture that feels you of having luxurious life style. All rooms of Marathon Neo Hills at Bhandup well designed with internal amenities those are wooden flooring in Master Bed room, Decorative main door, continuous water and power supply.
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sachin on Tuesday, June 04, 2019 3:47 AM
Marathon Group - who has developed more than 80 residential and commercial luxurious projects comes up with a new residential project Marathon Neoskies at a very good location of Mumbai i.e. Bhandup, Mumbai. Marathon Neoskies offering you the 1 BHK studio apartment and 1 BHK premium apartment at location Bhandup West, Mumbai. Marathon Neoskies at Bhandup Mumbai is integrated with the number of world class amenities that gives you a luxurious environment to be live in your own space.
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sachin on Friday, June 07, 2019 4:36 AM
Hiranandani Developers launched new project Hiranandani Lake Enclave Thane coming up at the Hiranandani Estate Thane, High Tech location of the Thane. The total project area of Hiranandani Lake Enclave Thane, Mumbai is spreaded across the 0.41 acres of region where the whole Hiranandani Lake Enclave Thane is getting ready for their home buyers looking for the luxurious homes. Hiranandani Lake Enclave Thane is going to offer 3 and 4 BHK spacious apartments integrated with the number of world class amenities that gives the best living structure for the lifestyle. Hiranandani Lake Enclave Thane offers rooms of varying carpet area sizing from 1089 sqft to 1609 sqft.
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shariq on Tuesday, June 11, 2019 2:22 AM
Shapoorji Pallonji Northern Lights Thane is a premium housing project launched by Shapoorji Pallonji Group in Thane, Mumbai. The Shapoorji Pallonji Northern Lights Thane Apartment in Thane Mumbai are available at reasonable rates. Shapoorji Pallonji Northern Lights Thane offers 1, 2 and 3 BHK Residence, luxurious and spacious apartments in every space of corner. Shapoorji Pallonji Northern Lights Thane consisting of residential apartments and is located at the peaceful, green which Discover a refreshed, rejuvenated you as you wake up to the Twittering of birds and the lush greenery every morning. Shapoorji Pallonji Northern Lights Thane, has internal and external Design based on Vastu Science which makes you and your family positive and full of happiness.
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sachin on Tuesday, June 11, 2019 3:07 AM
One Indiabulls Pokharan Road 2, Thane Project by Indiabulls, a residential project located at Pokharan Road 2, Thane, Mumbai. One Indiabulls Pokharan Road 2, Thane is a residential project by Indiabulls. Indiabulls is a leading real estate and infrastructure development company. One Indiabulls at Pokharan Road 2, Thane offers Luxurious apartments. One Indiabulls Pokharan Road 2, Thane offers 2 and 3 BHK apartments with comfortable sizes. One Indiabulls Pokharan Road 2, Thane comes with amenities like A Jogging track, swimming pool, indoor games, party lawn, pool table, fire fighting system, intercom facility, rainwater harvesting facility and a video door phone. The construction of One Indiabulls at Pokharan Road 2, Thane is widely spread beyond wide acres of land having most charming greeneries that is entirely spread all through till your eyes can reach.
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shariq on Wednesday, June 12, 2019 11:29 PM
Dynamix Group launched new project Dynamix Parkwoods Thane coming up at the Thane, High Tech location of the Mumbai. The total project area of Dynamix Parkwoods Thane is spreaded across the 11 acres of region where the whole Dynamix Parkwoods Thane is getting ready for their homebuyers looking for the luxurious homes. Dynamix Parkwoods Thane is going to offer 2 and 3 BHK spacious apartments integrated with the number of world class amenities that gives the best living structure for the lifestyle. Dynamix Parkwoods Thane offers rooms from 675 sqft to 817 sqft. The main attraction of Dynamix Parkwoods Thane developed by Dynamix Group is providing apartments surrounded with the natural touch which created the balanced lifestyle to live.
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sachin on Wednesday, June 12, 2019 11:35 PM
Kalpataru Paramount kapurbawdi thane is the newlaunch Project by Kalpataru Group in Thane, Mumbai. Kalpataru Paramount kapurbawdi thane defined by its exclusive location, architecture, amenities & connectivity. Kalpataru Paramount Thane West is a project spread in 5.40 Acres acers of Land Parcel with 5 exclusive towers with 275 units. Kalpataru Paramount kapurbawdi thane is the tower with superior Life style which you feel like a Star. Kalpataru Paramount Thane offers you excellent private views and is designed to offer optimum cross ventilation thus providing access to natural breeze and Sunlight. Throw open your windows to a draft of the coolest, most sublime breeze and stunning views of green.
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sachin on Friday, June 14, 2019 1:12 AM
Shapoorji Pallonji Real Estate introduced new residential project Shapoorji Pallonji Vicinia Powai situated in the heart of the city Powai, Mumbai. Powai is well developed in terms of social infrastructure. Shapoorji Pallonji Vicinia Chandivali is a project where you can meet scenic beauty of nature. Shapoorji Pallonji Vicinia Chandivali offers well designed 2 and 3 BHK apartments with all world class facility.Shapoorji Pallonji Vicinia Chandivali based on modern architecture that feels you of having luxurious life style.The Eastern Expressway and Western Express Highway are very close to Powai, connecting the area with the rest of the city.
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shariq on Friday, June 14, 2019 1:28 AM
Godrej Emerald is the Pre-launch project by Godrej in ghodbunder road Thane, Mumbai.Godrej Emeral spread in 15 acers of land in which 6.3 acers are for the first phase. Godrej Emerald, Thane is defined by its exclusive location, architecture, amenities & connectivity. Godrej Emerald offers you excellent private views and is designed to offer optimum cross ventilation thus providing access to natural breeze and Sunlight.
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shariq on Friday, June 14, 2019 1:30 AM
Godrej Emerald is the Pre-launch project by Godrej in ghodbunder road Thane, Mumbai.Godrej Emeral spread in 15 acers of land in which 6.3 acers are for the first phase. Godrej Emerald, Thane is defined by its exclusive location, architecture, amenities & connectivity. Godrej Emerald offers you excellent private views and is designed to offer optimum cross ventilation thus providing access to natural breeze and Sunlight.
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shariq on Wednesday, June 19, 2019 4:08 AM
Green Woods is a brand newlaunch project launched by Proviso Group . Proviso Goup is a well reputed builder in Navi Mumbai Real Estate. Green Woods is located at Kharghar, Navi Mumbai. Proviso Aastha is spread across 1.6 acers of beautiful area. Green Woods is a project having 2 tower and 191 units. Green Woods offers you excellent private views and is designed to offer optimum cross ventilation thus providing access to natural breeze and Sunlight. Green Woods offering 2 BHK and 3 BHK apartments in affordable payment plans. Green Woods internal and external Design based on Vastu Science which makes you and your family positive and full of happiness.Green Woods Kharghar works on real concept of housing which makes your mind relex and re-energies. The Rooms are commodious and wide that offers appropriate privacy to all residence.Project is well connected to Kharghar Railway station
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sachin on Wednesday, June 19, 2019 4:39 AM
Lodha Codename Golden Dream Taloja is a premium housing project newly launched by Lodha Group in Taloja, Navi Mumbai. The Lodha Codename Golden Dream Taloja, Navi Mumbai are available from 305 sqft to 380 sqft. Lodha Codename Golden Dream Taloja offers 1 BHK Residence, luxurious and spacious apartments in every space of corner. Lodha Codename Golden Dream Taloja consisting of residential apartments and is located at the peaceful, green which Discover a refreshed, rejuvenated you as you wake up to the Twittering of birds and the lush greenery every morning. Lodha Codename Golden Dream Taloja, has internal and external Design based on Vastu Science which makes you and your family positive and full of happiness.
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snehal on Monday, June 24, 2019 4:00 AM
Capital City Kharghar is the Prelaunch Project by Adhiraj Developers in Kharghar, Navi Mumbai. Capital City Kharghar defined by its exclusive location, architecture, amenities & connectivity. Adhiraj Capital City Kahrghar Spread in the 10 acres of huge land parcel. Capital City Kharghar offers you excellent private views and is designed to offer optimum cross ventilation thus providing access to natural breeze and Sunlight. Capital City Kharghar offers 1 ,2 and 3 BHK Residence, luxurious and spacious apartments in every space of corner. Capital City Kharghar consisting of residential apartments and is located at the peaceful, green which Discover a refreshed, rejuvenated you as you wake up to the Twittering of birds and the lush greenery every morning. Capital City Kharghar internal and external Design based on Vastu Science which makes you and your family positive and full of happiness. Capital City Kharghar works on real concept of housing which makes your mind relax and re-energies. The Rooms are commodious and wide that offers appropriate privacy to all residence.
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