Don't be Scared: Tips on How to Manage Stress Throughout the Home Buying Negotiation Process

If you react negatively to rigidity, inflexibility, and statements like “take it or leave it,” you’re not alone. Unless you’re in the military, or part of some similar hierarchical structure, in order to get what you want, you must learn how to negotiate.

Negotiation happens to be one of the most nuanced art forms out there, one that is often minimized or overlooked completely when it comes to training real estate professionals. Being able to effectively balance the differing personalities, the numbers, and the push-pull of it all is what separates a successful agent from the rest of the pack. After all, their careers depend on their ability to secure deals.

Some of the most critical moments in a negotiator’s journey involve submitting an offer based on the asking price and awaiting a counteroffer for a house. In this case, patience is most definitely a virtue.

And when patience is viewed as a skill rather than a character trait, it can be improved and sharpened like other negotiation skills.

The urge to exit quickly and give in to anxiety is counterproductive and oftentimes, those who visibly express their emotional stress are more likely to be taken advantage of during a negotiation. Many first-time buyers can experience emotional stress because of the multiple contingencies.

It's a good idea to avoid making any solid commitments unless you are positive that you have the clear authority to do so. The sooner you identify the main sources of power and potential setbacks, the better.

It’s best to focus on interests, not positions when compromising. Find out what the other side wants and use it to your advantage.

Much of the fear associated with negotiating can be alleviated with little market data research. Be sure to run the numbers, check public records, and find out as much as you can about the previous owner of the property.

Ask any experienced real estate agent and they’ll tell you that one of the most important aspects of the home buying negotiation process is walking into the room fully prepared to ask for what you want.

Setting a cooperative tone allows you to define a clear mid-point and make what could potentially be an uncomfortable conversation a lot more pleasant.

In every aspect of negotiations, effectively prioritizing and understanding the needs and the agenda of the other party is key.

By asking open-ended questions, you are essentially setting the stage for your offer. The more information you can extract, the more equipped you are to properly prepare yourself for any impending conflict resolution.

Effective agents are typically more attentive to the client’s needs and therefore, are more likely to come up with solutions that meet the needs of both parties.

Following up allows you to make sure everyone involved is still on the same page and that the deal or contract that you thought you had agreed upon is actually the purchase price agreed upon. Following up minimizes the potential for any small mistakes that may have otherwise fallen through the cracks. Be sure to follow up on any remaining closing costs as well.

It can be easy to let your emotions get the best of you during a negotiation, especially if it's something that hits close to home. But, try to remain as objective as possible as getting too emotionally invested may hurt your productivity.

In order to set yourself up for success, you need to find out who the decision-maker is, as well as what the other party's needs, values, and fears are. Also, keep closing costs into consideration.

Attempt to identify the seller’s specific pressure points as part of your preparation for negotiation.

Negotiations are time-consuming procedures, so be sure to take the time to establish a real connection with the other party if you want everything to run smoothly.

Review all of the data you’ve compiled so far and work with management to evaluate your current status and your alternatives.

Cultivate a positive collaborative reputation and let that guide your opponent's negotiation strategies. This is especially helpful if the seller has multiple offers to consider from potential buyers.

• Knowledgeable and competent in the stresses associated with real estate negotiations from both the buyer and seller side.
• Can expect the unexpected and handle the outcome professionally
• Knows when to panic and when not to panic
  
  

Negotiating for a home is particularly important since homes tend to be the largest asset most people own. When it comes to the home buying negotiation process, pushy sales tactics and one-size-fits-all solutions don’t work. That’s why administering the help of a cool-headed real estate agent who knows how to negotiate and has a solid track record for success can be the deciding factor in a bid for your dream home.