9 Breakthrough Negotiation Tactics
Negotiation is a game of back and forth, but what happens if the game reaches a stalemate? A stalled negotiation is a lose-lose situation. Luckily, there are some strategies you can use to break through a stalemate and close the deal on your terms.
Here are 9 breakthrough negotiation tactics to add to your playbook:
Enter stealth mode
Know your competitor inside and out, and you will have a better chance of achieving your goals. Before you make an offer on a home, research the time it has been on the market and the seller’s motivation to sell. You can even request an appraisal of the home before you make an offer. Not only will this information help you craft a reasonable offer, if your offer is rejected, you can use your insider info to leverage your position.
Call in back up
If you and the seller have both named your prices, and neither of you are willing to budge from your price, a third party might help set negotiation in motion again. A particularly advantageous wingman for you is a home inspector. More often than not, home inspections turn up issues with a property. Use these issues to press for a lower price or request contingencies to balance paying more.
Stand out in a crowd
In a sellers’ market, negotiation lines can become clogged with offers, overwhelming sellers and slowing them down. Make yourself stand out in a crowd by offering to pay listing price, submitting a letter of pre-approval, reducing contingences, and offering earnest money. You’ll glide right through the snarl of other buyer offers.
Bide your time
Like seller’s markets, a buyer’s market can also be sluggish but for a very different reason. Sellers may not be getting any bites at their home. If your offer on a home is rejected, and you feel reasonably confident that no one else will swoop in with a better offer, try biding your time. When a house sits on the market for a long time, its value dwindles. The seller might look better on your offer after a few weeks of inactivity.
Recruit an all-star
Maybe negotiation isn’t your strength. The good news is that there are hundreds of professionals up for hire who specialize in winning deals and have the track record to prove it. Having an all-star negotiation on your team can’t hurt your odds!
Work your charm
There’s a reason the term “winning smile” exists. Try to develop a relationship with the seller during the buying process. Be friendly and positive. While personality alone is unlikely to close a deal on a home for you, sellers will have a more difficult time turning you down if they find you likeable.
Dot your I’s and cross your T’s
Professionalism will go a long way towards closing a deal. Work carefully to make sure that all paperwork moves smoothly, and be on standby for action at all times. If a seller doesn’t hear from you in a few days, they might open themselves up to a new buyer.
Play it cool
There’s a price tag on desperation, and it’s not a price you want to pay! No matter how madly you have fallen in love with a home, keep your poker face. When one person wants a deal to go through more than another, that person ends up compromising more of their interests. Always.
Learning the rules of negotiation is one thing. Learning strategies is something entirely different. Master the negotiation tactics above, and you will be well on your way to victory and a new set of house keys.