Ok – confession time.
I am manager of a new car sales yard for a wage. (600+cars per year)
I am involved in on average 6-10 negotiations a day in person, and 10-20 over the phone.
The 4 best tips I can give you are:
1. Do your homework – don’t rely on what you are told – do it yourself – It is only important to you if YOU are involved. If it is not important to you – don’t listen. There is only so much room in your head when you are stressed out. If you do your own homework/research – YOU understand what is important – and can make quick decisions if required.
2. Be honest. Don’t tell lies – because you will never remember what you told each agent/buyer. You may need to deal with them again!. But withhold information
Keep something to yourself. It is not necessary to disclose your real budget. It is not necessary to disclose anything except what you want people to know. Remember that if you behave badly, why would you not get treated that wayas well.
3. Have an actual objective. Don’t drift. if the property is not what you are looking for – stop looking!. If it migt be – make it happen. Meeting your objective is the only issue. Get the required information – process it – and ACT!. People lose out on opportunities because they “can’t make a decision now”
If the return is the objective – then process what is required to gain the return – is the price right, but rent wrong? Or the price wrong, but the rent right? adjust BOTH maybe?
BUT ACT! Do, Doing, Done – Only DONE gets you a return all else is smoke.
4. Leave something for the next guy. it helps get a decision. I negotiated a 10%+ reduction in price by buying 2middle units of 4 units, and leaving the end ones for “an expected profit” for the vendor. All four were advertised for 230+, and I bought the two middle ones or 204 each, by convincing the agent that a quick sale would enhance the prospects of the end 2, and maybe the profit. he has since sold one of the end ones for 240. (this was Monday of this week).
I got what I wanted, and the vendor got an opportunity to realise some of his losses on the other units. He over capitalised on the refurbishments, and had spent too much – bank closing in – any cashflow is good.

The agent had previously failed to negotiate a deal on one of the units, by negotiating poorly. It was actually a higher offer than ours. We ‘Helped” him by being able to ACT, having the tools at hand to make a decision, and presenting it in a manner that the vendor could see something for himself in it.

We left something on the table for the other guy – HOPE.

I see a steady parade of people who want to sell cars, some do, but the successful ones act honestly, and ensure that the customer feels that he wasn’t screwed.

The real estate business is no different.

So,
Do your homework
Behave honestly
Have an objective and stick to it.
ACT

Available for any discussions on negotiating – one of the pleasures in life that is legal and non fattening.