The Art of Negotiation

Scott Meyers - Investing in Storage Units

Buy real estate without entering into one form of negotiation or another is virtually unheard of. Sellers want more and the buyers want to pay less. Check out the top five lessons we have learned in the art of negotiation.

  1. Don’t be difficult to sell to. Without even knowing it, many buyers are their own worst enemies. They don’t hold to appointments made or they show up late, they don’t hold to deadlines, and they are poor at returning phone calls. These kinds of behaviors will set the complete wrong tone for negotiating. You need to be easy to sell to! Go out of your way to extend courtesy to the seller, making them a VIP in your book. If you go above and beyond in your efforts, the seller is more likely to return the favor by being willing to lower the price or even offer you seller financing!
  2. Have a win/win approach. If you approach the seller with a win/win attitude, you will show good will. Don’t set out to pull the wool over their eyes and take off with what they owned for a steal. Try to make whatever deal that is on the table a fair one. Establish trust and let them know that you aren’t happy until they are happy.
  3. Keep your walk-away price in your mind. If you don’t have a price in mind, you will give into paying “just a little more” than you wanted. If you have that price fixed firmly in your mind and you hold too it, that will show to the seller and they will probably be more willing to bend.
  4. Understand how negotiation works. Buyer starts low. Seller starts high. They both work in their respective directions from there. People who are successful buyers know this and can take solace in knowing that if this “negotiation dance” doesn’t happen, a seller could be left feeling disappointed. If you sense a bit of tension on the final price, that usually means that the final limitation for both the buyer and seller has been reached. If that point isn’t met, it will leave the seller feeling like they got stolen from and they buyer feeling like they paid too much.
  5. Don’t be afraid to establish a friendship with the seller. Ask them about the property, listen to their story. Take a genuine interest in them! The more the seller likes you, the harder it is for them to say no to you.

Negotiation is an extremely important part of acquiring a new property. Learn to do the dance properly and most effectively and you will be sure to win every time!

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