Friday, May 11, 2012

The Art of Negotiating a Real Estate Contract

Negotiating a real estate contract can be a lot of fun, or it can make for a painful, sour experience. It all boils down to how prepared you are. Some Realtors have a knack for it, others don't. Some real estate agents embrace the art of a good old fashioned debate, while others would just prefer to let the contract speak for itself. Either way, there are tactful and not-so-tactful approaches to doing the right things for your sellers or buyers.

The largest mistake one can do is simply talk too much. Silence is your best friend. You'd be amazed how much information I can get from a buyer simply by asking the agent, "So why are the buyers choosing to move here?" Some agents divulge far too much information in everyday conversation. I mean let's be frank hereMost agents love talking. It's a fact; the more you talk, the more you're likely to give away information. Most new agents feel the need to talk if there's a silence in conversation. Don't let that be you!

Don't let your emotions get involved. If you get into a heated discussion with the other agent, don't let your emotions show. Be logical, be assertive, be precisebut don't get emotional. When you let your emotions get the best of you, you won't make succinct and beneficial points for your buyer or seller.

Take control of the situation by asking questions. If you are asking the questions- you are controlling the conversation and allowing the other agent the opportunity to talk and talk (see second paragraph). If you are asking questions, chances are you can still make your point and all the while the agent doesn't realize that you are in complete control. Ask prying questions that keep the other agent having to give excuses for their seller/buyer or explanations as to why they "haven't done this or that". Point out the things that the other party is lacking in, or things that they need improvement on. You are building a case for your buyer as to why you've asked for x price, or why your seller can't possibly sell that low.

Make sure you have all of your information. Do you think an attorney is prepared before he/she goes into court? Of course. They might spend months on research alone. Abraham Lincoln once said, "Give me six hours to chop down a tree and I will spend the first four sharpening the axe." You had better be prepared before going in to the ring. If you're not prepared, then you're dead in the water. I've always been the most confident in anything I've done when I've done the research, had my information, and was well educated on the subject. If you are prepared, then you are confidentand if you are confident, then you normally convey your case in an informative, convincing fashion.

Now get out there and negotiate a winning million dollar contract for your clients!

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