Negotiation knowledge is a powerful tool when making an offer on a property. The more information you have about a prospective property, its initial price, how long the seller has owned it, the better offer you can make. Negotiating can also be challenging because prospective land buyers want to get the most bang for their buck while spending the least amount of money possible.
What is negotiation in real estate? Negotiation is the art of two or more parties attempting to agree on a deal that ends up benefiting both parties. In most real estate negotiations, one or more parties agree to compromise or settle on mutually agreed terms. For both parties to agree, negotiation necessitates profound skills and expertise.
Negotiations are just one of the many things land agents do for buyers and sellers. Working with a land agent that has strong negotiation skills and allowing him or her to lead the process is one of the best negotiation strategies.
The art of negotiation isn’t just confined to real estate, deal making happens in almost every business; but in real estate there seems to be more flexibility – you can finalize a deal with a binding contract for almost anything. In real estate, everything is negotiable. All you need to do is ask- and be willing to walk away if it is a part of the deal that you need.
When a land buyer is interested in a property and wants to buy it, they submit an offer, usually with the assistance of their agent. The seller then has basically three alternatives:
- Accept the offer without any stipulations or modifications
- Make a counteroffer
- Reject the offer and look for a buyer elsewhere
Pat Porter, owner and broker at RecLand Realty, shares a few negotiation techniques to get what you want in your next land deal.
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