1. 5 Negotiation Need-to-Knows

2. Some people get so excited about haggling they
adopt an entirely new persona when the time
comes to talk their way into saving even a few
bucks here or there. Others cringe at the mere
thought of trying to suss out what’s going on in
the minds of those on the other side of the
bargaining table in order to strike a deal, even
when hundreds of thousands of dollars (and
their own best interests) are at stake.

3. 1. Work from a foundation of sound information.
It’s essential you amass an arsenal of information,
and use that as the basis for your negotiation. You
are in no position to negotiate, aggressively or
otherwise, unless and until you are well acquainted
with the real estate market immediately
surrounding your home, including:
• what have similar homes recently sold for;
• how much above or below asking do they
normally sell for;
• how long do homes stay on the market, on
average, compared with the home you’re buying
or selling?

4. 2. Approach the negotiation as a problem-solving
challenge. Today’s negotiations are really more like
problem solving scenarios, when you take into
account all the parties whose needs must be met
for the transaction to move forward. Traditionally,
negotiations were a two-way power struggle
between the buyer and seller, based primarily on
their wants and their respective bargaining
leverage. But on today’s market, the bank - or banks
on both sides -- often have their own guidelines and
needs that impact the terms of the deal, whether it
be the seller’s lender insisting on a certain price, or
the buyer’s lender and appraiser refusing to lend
anything above a certain price.

5. 3. Manage your own mindset. You probably
shouldn’t even try to buy a home that you don’t
strongly like, or even love. It often makes sense
to hone in on a specific offer price (within the
range what is reasonable for a home) based on
how much you want it, or how much you’d hate
to lose it - especially in a multiple offer situation,
where you may only have one chance to make
an offer.

6. 4. Minimize time pressures. Over the years, I
have seen many a buyer and seller make
questionable offers and counteroffers based
solely on the fact they have to move by a
certain deadline. Because shelter is a basic
human need, the prospect of having to move
out, relocating to a new job or moving to a new
town without having housing in place can cause
even the most nimble among us to feel
ungrounded.

7. 5. Act and react quickly - not impulsively. When
you find ‘your’ place, make an offer. When you get
an offer or counteroffer), respond to it. In real
estate, time is always of the essence, and prolonged
hesitation often results in lost opportunities.
There’s nothing wrong with sleeping on a decision
overnight, especially if the ‘right’ move is
unclear. But you never know when another buyer
or another property might show up on the scene
and change the whole bargaining dynamic, costing
you more money or wooing away your home’s
buyer.

8. Buyers, sellers: what negotiation insights have
you gleaned from your own real estate
experiences?

9. Randy Bett
Investment Realtor/Author/Investor
Real Estate Professionals Inc.
Better Group Real Estate
202-5403 Crowchild Trail NW
Calgary, AB T3B 4Z1
Phone:403-774-7464 Ext:1
Fax:403-208-0082
Toll Free fax:888-711-6801

10. Randy Bett
www.BetterGroupRealEstate.ca