When someone decides to buy a rural property, frequently the first inclination is to get out and “go shopping”.  Viewing properties is usually fun, especially when they are located in the country and the sun is shining.  But making that your very first step could lead to disappointment along the way.  Unfortunately, I often meet folks that have only a vague idea of the steps involved in the real estate shopping process and as a result quickly get frustrated with the endeavor. To avoid such frustration, there are four distinct steps that buyers should consider to prepare for serious shopping.

1. Choose Your Price Range

Step one is so important yet many buyers procrastinate because it’s just not fun to get pre-approved for a mortgage. Yes, it’s certainly more exciting to look at properties and dream than to have your mortgage banker or accountant tell you the cold hard facts, but skipping this essential step will only lead to disappointment later. There are few things as disheartening as having your heart set on a property only to find that you just can’t swing it financially. Knowing what you can afford will help you shop with confidence. You’ll also save time by only concentrating on the properties that are within your budget.

2. Choose Your Area

This second step will require you to spend some time online and in your car researching the area where you want your property to be. Too often people short cut this step and as a result they spend days looking at properties in a certain location only to find that they like a different area better.  One example is the Driftless area of Southwest Wisconsin. I frequently meet people that are completely unaware of the rugged beauty and reasonable prices just a few hours from their front door. A little time spent exploring different areas would have revealed this hidden jewel to them before they spent days looking elsewhere.

Some things to consider when doing your research are:

A)   How far are you willing to drive from your principal residence? A property is of little good to you if you don’t use it.

B)   What are your preferred recreational activities? Is there opportunity to enjoy the activities in the area?

C)   Will your friends or family be willing to join you there? Too often I see buyers hoping to use a property to reconnect a family only to find that the family members seldom make the trip.

D)  Do you like the communities in the area? Second homes often turn into primary residences at retirement so will you enjoy spending more time there?

A little time spent researching various location options will help you feel confident that there isn’t something better for you just over the horizon.

3. Choose Your Agent

Once you have an area selected for your recreational property or second home, it’s time to choose an agent to work with. While some people just call the agent that is on each for sale sign, most buyers find that working with a single agent is to their advantage. When you work with several agents, each one may pressure you to buy their listing instead of considering the best property for you.

When a buyer is committed to working with a single agent, it allows that agent to focus on the buyer’s needs and provide service without the pressure to buy any certain property. Most agents have access to the listing info for all of the available properties in the area so your agent can work with you on virtually any property you are interested in.  Enlisting your agent in writing as your buyer’s agent allows him/her to represent you (not the seller) in the transaction and allows them more freedom when advising you.

Choose an agent that can provide the proper tools (i.e. GPS, mapping, ATV) to help you get a really good feel for each property you view. You’ll also want an agent that is experienced in rural property transactions. You wouldn’t expect a medical malpractice attorney to be as familiar with divorce proceedings as a family law attorney. Similarly, an agent that specializes in urban properties won’t be as familiar with the intricacies of rural properties as an agent that does it on a daily basis. Even as I write this, a fellow agent commented to me in exasperation “Is there ever a transaction that is easy any more?” The fact is that rural real estate has changed a lot in the last few years and “perfect” transactions are a lot less common. Having an experienced agent representing you can mean the difference between obtaining your dream property and a lot of disappointment.

4. Choose Your Priorities for a Property

Once you have an agent that you’re comfortable working with, it’s time to have a good heart-to-heart talk. To help you find the perfect property, your agent will need to know how much you can spend and as many details about your ideal property as you can provide.

A list of priorities is also helpful when you start visiting properties. In some cases you just won’t find everything on your “Perfect Property List”, so decide which features are absolute requirements, and which ones you could live without or add after the purchase. Look into the future especially if you intend to keep the property long term. Will it still work when you retire and could it be modified to meet your needs as you age? Finding the perfect property is often a process and your wants and needs may fluctuate slightly as you shop. Be sure to keep your agent abreast of those changes so the properties he/she suggests are relevant to your current desires.

With these simple preliminaries out of the way, you will be able to enjoy the property buying adventure. Before long your agent will introduce you to a property that you fall in love with and want to pursue.  He/she will be there to guide you through the negotiation process, inspections, permits, surveys, title commitment, etc.  With the proper preparation, you’ll look back at it and say, “That went well.”

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.”

In a buyer’s market where credit is tight and sales are slow, desperate sellers may find themselves in such a bad bind that it’s better for them to accept the pain of continuing to hold out rather than accept a low-ball offer that is predictably ruinous. Low-ball buyers cannot assume that pressured sellers are without options that feel slightly better, even though they’re pretty bad.

I’ve seen back-to-the-wall sellers reject insultingly low offers out of pride.

If you hate to haggle, you’re probably not much good at it. Doing a good job for yourself is partly about the attitude and confidence you bring to the table.

You can build confidence through preparation and research. Buyers need to know as much as possible about the property, their sellers and their own objectives and resources.

Successful bargaining is also about civility. Gloating, belittling and end-zone dancing are what little kids and professional athletes of the same age do. Issues in negotiations are problems to be solved, not platforms to show that you’re smarter than the other side. It’s much easier to concede a point to someone you’re okay with than to someone you loathe.

And then there’s fair play. I know an FSBO seller who rejected three full-price offers from a buyer, each $100,000 higher than its predecessor, because he knew the buyer would go higher. Some think that’s admirable negotiating; I don’t.

Where brokers are orchestrating a sale, a buyer can request face-to-face negotiation with the seller during which the buyer can directly present an offer.  Large real-estate deals are often handled this way.

Certain buyers will do better for themselves by allowing the broker to present an offer; others will be disadvantaged. The rule is: it depends on the personalities.

I’ve generally found that it helps both sides to negotiate directly, face to face. It’s the best way to get a sense of the other side.

If you feel uncomfortable negotiating for yourself, negotiation helpers are available to provide counsel.

Whether buyer or seller, you’re looking for a helper who is experienced in negotiating, knowledgeable about the issues that will be raised and, ideally, is not invested in your sale, either emotionally or financially.

Your local lawyer. Good real-estate lawyers help their clients enormously. Nitwits and the obnoxious don’t. Negotiating is a different skill than advocacy; not all lawyers understand the difference.

If you’re an out-of-town buyer, you may help yourself by letting your local lawyer negotiate with a local seller. Ask whether this is ethically or socially awkward for your lawyer; if so, don’t make the request.

A mediator-consultant. Trained mediators are skilled in getting parties to reach compromise agreements. A mediator-consultant who is hired by one side can be invaluable in finding common ground.

Brokers or agents acting as outside consultants. All brokers and agents who are involved in a deal are financially invested in getting an agreement. While agents are expected to represent the best interests of their clients in negotiations, it’s not unknown for deals to be encouraged because of self-interested commission hunger.

A buyer could consider hiring a broker or an agent as a negotiating consultant, paid by the hour. The broker/agent-consultant is not part of the deal and would not share in the commission split. As an outside and independent consultant, the broker/agent would provide advice unrelated to having his reward be contingent on a purchase.

Brokers and agents. Where buyers and sellers are represented by brokers and agents who always put their clients’ interests above their own, buyers and sellers can place faith in their advice. Where buyers and sellers do not have that feeling about those who represent them, their advice is always a little suspect.

Good brokers and agents have figured out how to keep their own pocketbooks out of negotiations; bad ones don’t even try.

Professional negotiator. If you’re in face-to-face negotiations, you might consider hiring a pro.

Steven Cohen, author of Negotiating Skills for Managers, is president of The Negotiation Skills Company near Boston (www.negotiationskills.com). His staff of professional negotiators is available to buyers or sellers for coaching and handholding in person or by phone. “Real estate,” he told me, “is all about negotiation,” which he describes as a “live tool for collaboratively solving problems.”

Another negotiator provider is www.consensusgroup.com. Michael Rosenthal, president, said his negotiators can train clients in strategy and preparation through online materials and role playing. The fee for email and/or phone consultations is $400 to $500 per hour.

Professors. A local college or university may have a knowledgeable faculty member. Avoid the theoreticians and the games-strategists—they’re overkill for real-estate deals. You’re looking for practical help, down in the trenches. Check references.

With the exception of lawyers, negotiator consultants must not negotiate on behalf of their clients as their agents. State laws governing the practice of real estate prohibit non-agents from doing so. A buyer can, of course, purchase whatever advice and information from a consultant that is desired outside of the commission framework.

Spouses. Some couples can take different roles in a negotiation and carry it off without marital meltdowns. Tag-team spousal negotiating is freer of consequences when the couple wins. Losses tend to beget statements like, “How could you be so stupid!”

I’ve seen spousal tag teams adopt different models: accelerator-brake; acceptable price-higher price (seller side); acceptable price-lower price (buyer side); and Mr. Reasonable with Designated Dingbat. Ms. Dingbat’s role was to crazy up the negotiations just enough to unsettle the sellers and have them focus on dealing with her “irrational” demands and Joan Rivers personality. She was brilliant.

The negotiating advice that always applies is to act reasonably and don’t personalize negotiations.