Top 7 Tips for Negotiating Real Estate Deals and Getting the Best Price

Negotiation is both an art and a science.

It can be tricky to master, but those who do will have a competitive edge over other investors looking to secure the best price when investing in property.

But with these real estate negotiation tactics and tips, you’ll be on your way to having the leg up on both the competition and those you’re entering negotiations with. 

1. Knowledge and Education is key

Knowing how to negotiate property price can really come down to how well you know the subject matter. 

The more you know about real estate and the property market, the better position you will be in to argue points that work in  your favour.

Coming into a negotiation prepared, with an advanced understanding of the property market automatically puts you in a great position to achieve your goals.

2. Hold your cards close to your chest

It’s a good idea when it comes to negotiation to not reveal too much too early. 

It’s also worth letting the other party speak first, putting you in a position to respond. 

Once you know what the other person is offering, you can go even lower/higher, knowing that there will be the potential to reach a middle ground in your favour.  

3. Be comfortable with walking away

Knowing how to negotiate in real estate can also be about knowing how to say ‘no.’

Some people will consider walking away as a failed negotiation. But this isn’t always the case in property investing.

Saying no at the right time can actually be a great method of persuasion. This might force the other party into lowering their standards as they scramble to meet you in the middle.

While it’s always a good idea to try to secure a win and get the best price, this shouldn’t be ‘at all cost.’

It won’t be a win if you’ve had to fork out more than you’re able to for the property. 

In this case, it’s best to walk away – there will always be opportunities to negotiate real estate prices in the future. 

4. Know your bottom line and be okay with a compromise 

While it’s important to know when to walk away, it’s also important to know what you’re willing to compromise on. 

This may be a big ticket item, like knowing the most you’ll pay for the property. 

While ideally you may be looking to negotiate a cheaper price, is what’s being put on the table a reasonable offer and one that you can work with?

It may also be willing to agree to certain terms and conditions. You might be able to negotiate a lower price if you were willing to clean out the property or carry out a few repairs. 

There are plenty of ways to negotiate the best deal. You have to be willing to hold your ground where it matters but make concessions where you feel comfortable doing so. 

5. Know your seller 

Negotiation is about understanding your own situation, as well as the person you’re entering into negotiations with. 

To negotiate a great real estate deal it’s a good idea to know the other person’s goals in selling the property.

For example, say you find out they need to make a quick sale. Or maybe there are some issues with the property that you know you can fix cheaply, and are able to negotiate a lower price.  

Or maybe they are interested in a long settlement. While some might not be willing to wait, you might be happy to go through a long settlement for the right price.

Investing time into finding out the full picture and the situation of the seller can give you an advantage in getting the best price on the right property.

6. Make use of affirmative language

If you want to be a great negotiator, be comfortable with being decisive and straight to the point. 

It’s important not to doubt yourself or create the impression that you don’t know what you’re after. 

Affirmative language is great to ensure you remain confident throughout the negotiation.  This includes language that expresses the truth of a statement and doesn’t include any negatives like’ not’. 

For example, instead of saying, ‘I don’t think that’s right,’ maybe try ‘That’s true, but have you considered…’

This type of language is a great way to appear confident and assured.

7. Never lie

Finally, no matter how bad the negotiations seem to have gone for you, it’s important to maintain truth in your dealings.

Any lies put forward on the negotiating table will usually be found out and can have some damaging consequences – both financially and to your reputation. 

And besides, building trust can really work in your favour.

Negotiation isn’t always about you versus them. It’s often really important to try and create a ‘win-win’ situation for everyone at the table. 

You never know when you might be buying from that party again – and having someone know you’re a trusty buyer will always be a benefit as you expand your portfolio and look to purchase more property. 

Keep things honest and your negotiations will always be the better for it. 

The Bottom Line…

Becoming a great negotiator is no easy business and can take a lot of time and practice.

But once you’re equipped with the skills of how to negotiate house prices, you’ll elevate your investing possibilities and opportunities for financial freedom!

For a deep dive into the negotiation experience as a property investor, check out this video: