Being able to ask for and get what you want is a rare skill that can serve you in many areas of life. In real estate, it is the difference between making a perfect deal or a big disaster.


However, negotiation is not just an art but a science as well. Like any art, it demands practice. And like any science, it also requires study. So, naturally most people are not good at real estate negotiation in the beginning though with time some master this skill to excel in the real estate business. At times many properties don’t really require negotiation: You hand in an offer with the earnest money and the offer is either accepted or rejected.


But if you’re going to be representing high-end properties, delving into commercial real estate, or otherwise escalating your career, you need to know how to negotiate effectively.


Here are three important tips which you should keep in mind while negotiating a real estate deal:


Take the initiative:


You should be proactive rather than reactive during real estate discussions. It is paramount that you act with authority, have a good attitude, communicate effectively, and listen with empathy. You should avoid being negative or operate from a position of weakness and most importantly listen and be aware of the genuine needs of your counterpart. The more information you have about their concerns during the process will give them a sense that they are being heard. Get someone to challenge their views or words when trying to persuade them to alter their opinion.


Add value to your clients:


Real estate agents do not pressurize customers into making decisions they don’t want to make. But you should know as much about the property and area as you can so that when push comes down, there are no surprises waiting for you. Educate the client as much as you can if you want to be an authority in your profession. You should make information readily available so that buyers and sellers can make well-informed decisions. Being truthful and transparent is very important to build trust with the clients. This is the only way your clients will regard you as the trustworthy source despite a lot of information easily accessible on the internet.

Try to find common ground:

Realistically speaking, you and the other party want the same thing: to close the deal. And your negotiating strategy should take advantage of this fact. Take this as a common ground and build your negotiation strategy around it. While you might want them to take your initial offer, you should expect them to counter the offer. But everyone around the negotiation table must be realistic about the money offered and money expected. It is also important to have alternative offers in place if necessary, so that you have a clear understanding of how flexible you can be when it comes to negotiations.

The best negotiators are actually problem solvers, who recognize the fact that both the parties – home buyers and sellers – ultimately want to close the deal with no or few complications.