Negotiate like It Matters – 7 top Tips for Expert Property Negotiations

The thought of negotiating an agreement in this strong buyers’ market that we have here in Kapiti, can be daunting, whether you’re a buyer or a seller. What is the house worth, what’s the market going to do in the coming months and how do you do the best for yourself when there are so many unknowns?

However, by following these seven ten tips, you can approach negotiations with confidence and increase your chances of achieving a successful outcome, no matter which side of the deal you are on.

1. 1. 1. 1. Understand the other party: Before entering into a negotiation, try to understand the goals and disposition of the other party to gain insights that can help you negotiate effectively. Take time to gather information about the other party’s motivations, goals, and personality traits. Try to put yourself in their shoes and understand what they are trying to achieve in the negotiation. Are they motivated by price, timing, or other factors? Are they risk-averse or willing to take risks? Do they have any specific requirements or constraints? Additionally, try to assess the other party’s negotiating style. Are they aggressive, cooperative, or somewhere in between? Understanding their disposition can help you tailor your negotiation approach accordingly. For example, if the other party is known to be tenacious and dollar focused, you may need to prepare for tough bargaining and be assertive in presenting your position. On the other hand, if they are more cooperative, you may be able to build rapport and find mutually beneficial solutions.
         2. Understand the current market buyers’ market conditions to tailor your approach: In a buyers’ market, where there is an excess supply of properties and fewer buyers, the negotiating power often rests with the buyer. Buyers have the advantage of being able to be more selective and may have more leverage to negotiate favourable terms and lower prices. In this market, sellers are well served if they are prepared to be flexible in pricing and terms, be willing to make concessions, offer repairs or improvements to the property or be flexible with dates and deposit amounts. Avoid setting your expectations too high, as this can lead to disappointment and potential impasse in negotiations. Faster decisions can assist better outcomes also. It’s important to look like the best value, and in doing so, sellers may then attract some competition to the table.
         3. Keep the other party thinking well of you: When negotiating, it’s essential to maintain a positive relationship with the other party. Even if you don’t agree on everything, try to be respectful and courteous to keep the negotiation moving forward. This is still important to consider, even if you’re not directly interacting with them, and instead are working through an agent. Effective communication is key when conveying your perspective and understanding the other party’s concerns. Clearly articulate your points and actively listen to your agent’s feedback. Try to remain composed in your interactions and priorities collaboratively working with your agent to find win-win solutions that addresses the interests of both parties.
         4. Keep the end game in mind: Have a clear understanding of what you want to achieve from the negotiation. It involves defining your objectives and priorities before entering into negotiations and stepping back from the detail, staying focused on final outcome, throughout the process. This allows you to assess offers or counteroffers, make informed decisions, and maintain a rational approach. It also gives you the confidence to walk away if the terms do not align with your objectives, which can increase your leverage in negotiations. Effective communication of your end goal can also build credibility and influence the other party. Having a clear end goal can help you stay focused and make better decisions during the negotiation process.
         5. Have a back up plan: The best negotiators understand the power of walking away from a deal that isn’t in their favour, and having a well-prepared back-up plan can be a crucial element of successful negotiations. It’s important to recognize that sometimes, the best outcome may be to not reach an agreement at all, especially if it doesn’t align with your goals or if the terms are not favourable. By having a back-up plan in place, you can approach negotiations with a sense of confidence and leverage, knowing that you have alternatives if the current deal doesn’t work out. This can also help you avoid making hasty or poor decisions out of desperation or fear of missing out. Your back-up plan can include alternatives such as exploring other properties, considering different financing options, or even postponing the negotiation altogether. Being prepared to walk away from a deal that doesn’t meet your most important criteria shows that you value your own interests and are willing to protect them. This mindset can help you maintain a strong position during negotiations and increase your chances of achieving a successful outcome. Remember, negotiating from a position of strength and having a well-thought-out back-up plan can be key to navigating the uncertainties of the current property market and ensuring that you make the best decision for yourself, whether you’re a buyer or a seller.
         6. Get professional help: One of the most crucial tips for successful property negotiations is to seek professional help. In this strong buyers’ market, where uncertainties abound, having the expertise of a real estate agent can be a game-changer. Real estate agents are skilled negotiators with experience in property sales, and they can provide valuable guidance and representation throughout the negotiation process. They have in-depth knowledge of the local market conditions, property values, and legal issues that may arise during negotiations. By having a real estate agent by your side, you can approach negotiations with confidence, knowing that you have someone who can advocate for your best interests. Moreover, a real estate agent can help you stay objective and less emotional during negotiations, as they can relay your position professionally and with compassion, helping both parties find a middle ground. With their expertise, real estate agents can navigate any challenges that may arise, ensuring that your negotiations are smooth and successful, whether you are a buyer or a seller. So, don’t underestimate the value of professional help in property negotiations; it can be the key to achieving the best possible outcome in this competitive market.
         7. Stay focused and patient: Try to stay focused and patient, both throughout the entire purchase and sale process, as well as during the more intense negotiation phase. In a market that may heavily favour one party over the other, such as the current strong buyers’ market in Kapiti, it’s important to recognise that buying or selling a home can be time-consuming and stressful. To navigate through the uncertainty, it’s crucial to maintain focus on your goals and exercise patience, even when faced with pressure to rush into making hasty decisions. Take the time to thoroughly understand the market dynamics, gather relevant information, and carefully consider your options. Avoid succumbing to impulsive reactions or getting swayed by emotions during negotiations. Stay composed and level-headed, and be willing to wait for the right opportunity or outcome. Remember that negotiation is a process, and it may require time and effort to arrive at a mutually beneficial agreement. By staying focused and patient, you can increase your chances of achieving a successful outcome in your property negotiations, regardless of whether you’re a buyer or a seller.

Remember, negotiation is an art, especially when the market is unbalanced, tipped to the favour of one party, and it’s important to approach it strategically, with preparation, patience, and a focus on achieving a mutually beneficial outcome. With the right approach, mindset and support from a pro, you can negotiate yourself the best deal available and make the most of the opportunities in the property market. So, go ahead and put these tips into practice, and may your next property negotiation be a resounding success! Happy negotiating!