Learning Good Negotiation In Real Estate Investing

09.11.2009 | Author: Daniel Mc Grey | Posted in Real Estate

In any business, communication between the seller and the buyer is always crucial. In real estate investing, you can sometimes close a deal because of good negotiation skills. But what exactly do you need to do or say to become a good negotiator?

Perhaps the first image that comes to our mind when we speak of a good negotiator is someone who can persuade other people with pure flattery. Maybe he’s stereotyped as someone in a well pressed suit who simply sounds impressive with all the real estate jargon he knows. Real estate veterans, however, know that there’s more to just talk and the nice suit.

While there is nothing wrong with being presentable, you must always go beyond the packaging. One thing you can do is to stop talking and start listening. What many beginners do not realize is that a house seller wants to sell his house, not listen to how good you are when it comes to real estate investing. Learn to take a pause, halt your tongue, and pay attention to what your client (in the case of wholesaler or a house flipper, the client is the house owner) has to say.

Good negotiators listen and make the other party do the talking most of the time. When the client runs out of things to say, the good negotiator asks another question related to what the client last said. This exercise will help you know more abut your client and the things that appeal to him.

For example, the home owner says he can’t put the house on the market because it badly needs repair and he doesn’t have the finances to make them. You can reply by saying, “So basically you need someone like me who is willing to buy your home as it sits right now to help you out. Is that true?” This reply acknowledges that you heard what the owner says and that you can help him.

You can hone your negotiation skills further by seeking information online. You can check out REIwired.com, which offers free media on REI or real estate investing. You can choose from informative articles, audio files, or videos at REIwired.com. REI Wired also offers a professional program where you can learn from real estate experts online. It also has a section where you can download content on anything real estate investing.

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