The world of commercial real estate involves a lot of negotiation. However, there are still some people who aren’t comfortable with negotiating, mainly because of insecurity issues. Luckily, negotiation is not exactly one superhuman ability only available to some people. Instead, it is a skill you can maximize when put into practice. So, here’s a list of tips we’ve compiled for you to develop your negotiation skills.

Tips for negotiating like a pro

• Understand the landscape

  Before diving into negotiation tactics, it’s crucial to understand the unique landscape of real estate transactions. In this dynamic, each deal is a delicate dance between sellers and buyers. And each of them has their motivations, interests, and priorities. A successful negotiator will navigate this landscape with finesse trying to achieve a win-win solution.

• Think win/win

  You have probably heard the phrase “win/win”. After all, it’s a common strategy in the world of negotiation in general. In the real estate industry, both parties should leave a real estate closing feeling satisfied with the deal.

  Approach commercial real estate deals with mutual respect and understanding to ensure both parties are satisfied with the outcome.

  Team spirit can help alleviate discomfort during negotiations, making the process feel more positive and beneficial for everyone involved.

• Know your goals

  Before the negotiation meeting, study successful real estate investors and deals. Also, educate yourself on zoning and uses and make sure you attend the meeting with clear goals in mind. Throughout the meeting, look for alternatives that suit your goal better. Or, you can have a backup plan as well.

• Build rapport

  Believe it or not, negotiation is more about relationships than about numbers. So, building rapport with the other party is essential. It not only fosters goodwill but also creates a more collaborative atmosphere. Take time to listen to the other person actively, show empathy, and seek common ground.

• Let the other party speak first

  Don’t put your cards on the table immediately as negotiators will stick to a middle ground. Remain silent and allow the other party to initiate the conversation. Once you have listened to their interest, you can express your figure. You can set it lower knowing beforehand what the potential middle ground would be.

  
• Consider some persuasion techniques

  Make a list of persuasive techniques you have used. Keep track of actions that worked and those that didn't. Document your desires and the resulting outcomes. With this information, you can study your successful techniques and stay consistent.

• Have a firm “walk away” price

  A key element in the negotiation process is knowing your limits. Hence, you should consider a price point beyond which you will not purchase the property.

  For instance, if you've done the calculations and a figure such as 650,000 or higher doesn't seem reasonable, then 650,000 becomes your "walk away price".

  The strategy consists of sticking to that price as an upper ceiling. When the seller recognizes your limit, they can lower their price to meet your upper limit.

• Stay flexible

  Keep in mind that negotiation is rarely a straightforward process, so be flexible and patient. Adapt your strategy if new information emerges and be patient to let the negotiation unfold at its own pace.

  Mastering negotiation in real estate is a challenging but achievable goal with practice. We hope these tips will help you negotiate like a professional and achieve the results you want.

  If you’re looking for experts to help you with real estate and maximize your income, we are here to help. Contact us today for more information about Prroperties.