A successful Real Estate deal usually is the result of skillful negotiations between two parties. Whether you are a buyer or seller it is important to understand the negotiating process. Your home is usually the most expensive transaction you will make, and has the greatest economic impact in your life. It is imperative then that you make sure you are represented by a trained professional who has your best interest at heart. I would like to share with you a few principles I believe are important in negotiating a Real Estate deal.

1) Approach every deal as a Win/Win–The best outcome in a Real Estate transaction is for all parties to win! Whether buying or selling it’s important that the process be fair. Asking way too much for a home, or offering way too low a price only causes offense, and brings negative emotions into the situation. Make sure your Realtor explains what Fair Market value means, and do your best to approach the process with this in mind.

2) Know what is important to the other party–When negotiating a deal it’s important to hear what is important to the other party, and respond with that in mind. Some sellers will not accept anything less than a full price offer, but they might be willing to pay closing cost or do desired repairs for the buyer. Some buyers who need to move in quickly might be more willing to pay all the closing and bypass repairs to get occupancy sooner. When you listen you can find a way to make the deal happen.

3) Know your bottom line–Everyone has a bottom line that they are comfortable with when approaching a deal. Not knowing what your bottom line is will make the process more stressful for everyone. When working with first time home buyers I’ve learned to ask them what payment they are comfortable making. Sometimes they are pre-qualified for more than they are actually comfortable with. It’s easier to go up when house shopping than it is to go down. The bottom line is know your bottom line!