Creative Negotiation, Think Outside the Box

Have you ever driven a route so often that sometimes you wonder how you got from point A to point B without much conscious effort? Sometimes the routine is so imbedded that it requires a conscious effort to make a simple deviation.

Negotiation in real estate can become a routine and very ordinary. But in a parched economy, creative negotiation is a necessity. It will require some thinking out of the norm, a strong dose of good imagination may be necessary. For example, typically, buyers often make offers to the sellers, however, sellers may consider making an offer to potential buyers who may have expressed strong interest but haven't made a move, for one reason or another. It will certainly turn their heads. Seller financing is another option that has been used in past difficult markets; it would be great for buyers who may not be able to qualify in today's stringent underwriting guidelines or who may need a second loan but aren’t able to get one. Consult with your loan experts for guidelines and requirements should you choose to take this route.

Effective negotiation strategies require some planning, require that you know the parties involved: know their interests, their fears, their needs, their wants, what motivates them, and their financial information if possible. But more importantly, be a good listener and know your options.

Some negotiation incentives are:

• Buy down points
• Closing cost
• Personal properties
• Services/Trade
• Timeline
• Travel