Real estate is all about negotiation: here’s help

A few individuals love negotiating over property. Others prefer it to back pain but not by much. Most consider it another one of the endless, necessary miseries of adulthood.

I’ve found that negotiating is easier when I can figure out which one of four buyer-seller bargaining relationships I’m in. The four are: 1) both sides are motivated to make a deal; 2) both sides are not highly motivated, but willing; 3) buyer is motivated, seller is not; and 4) seller is motivated, buyer is not.

Price changes motivation. A better offer will move an indifferent seller, just as a lowered price will help a kick-the-tires-type buyer.

I’ve found that non-price factors — terms, seller-financing, upfront financing costs, irremediable negatives, sweeteners and so on — can be as important as price. Lack of physical or legal access, for instance, will stop a land deal, no matter how cheap the price.

A seller stuck on a price can sometimes be jiggled off it by making a point lightly: “I’ll meet your price, if you meet my terms.” Read more »