Real Estate Negotiating -
Negotatiating the Sale & Contract

Don't believe it! There are alot of agents who have no idea when it comes to negotiating a sales contract, and their lack of people skills and courtesy often loses them opportunities.

Before you can begin negotiating, let alone, real estate negotiating, you have to get to first base with people. If you treat them with dignity, respect and compassion, they will respond more readily and will be more open to communication.

For real estate negotiating you need to use your people skills. If you lack in this area, I would recommend that you find someone like your partner/spouse/friend to help you when it comes to dealing with potential buyers. It's your ability to communicate openly and effectively which will help put buyers at ease and allow you to gain their trust.

1. Practice your phone answering method and have a planned spiel. You don't have to follow it word-for-word, but just a summary of important questions to ask. This way you are less likely to falter, or forget anything important to ask or say.

2. Relax, take your time and take the time to listen to what the other person is saying on the phone, and also what they are not saying. Take note of their tone of voice and the type of questions they are asking and how they respond to you.

3. Make notes about any important things you pick up during the conversation that could be useful, especially things like what they are looking for particularly in a home.

4. During open house inspections, tune in to your potential buyer. Listen carefully, observe their body language, probe for information using relevant questions and try to find out what it is they want. Does your home match their needs? If not, don't waste your time or theirs - let them on their way.

5. Let your passion about your home shine through. By giving your buyer detailed information about your home and area, you are peceived as an expert, and are showing genuine interest in them. This fact about private home sellers often wins the trust of many a potential buyer.

An important skill that agents talk about and do automatically is Prequalifying the buyer. What this means is to work out whether the buyer is serious or whether they are just 'looking' and aren't really in the market to buy. By pre-qualifying potential buyers upfront, you will save yourself time and stress (a good pre-qualifying question is "Has you finance been arranged?").

To pre-qualify you should have a few questions ready - usually when they come to inspect. You can only get so much information from people over the phone. Remember, your main objective when a potential buyer first calls you, is to quickly build rapport and set a firm time for them to inspect your home whether by appointment, or during an open house.

Once they come to your open house, you can continue building rapport with them, and establishing a relationship to help you more readily gather information. The more information you have about them, and their needs and wants, the better will be your real estate negotiating position. You should by then feel more comfortable negotiating the house price, and real estate sales contract. You have succeeded when both parties have got what they want (WIN/WIN).

Now, it doesn't always go according to plan, especially when buyers give little away in the form of information. There is not alot you can do here but to go with the flow and work with them. Don't take it personally, but try to match their pace (not their method). Remember, if they are interested enough to be there, they want something from you.

All this, along with the information you have already gathered using your Open House Sign-in Sheet, plus any subsequent communications, should give you a pretty good idea about the character of the potential buyer and whether there is a possibility they are the 'right buyers' or not.

The sequence in which events happen will naturally bring you to the 'crunch' time - signing a real estate sales contract. At this stage of the real estate negotiating game, you should have have an idea whether this buyer is serious and in a position to make an offer.

Now if you're really fortunate, at this stage the buyer will say... "we want to make an offer (and it's the price you want) and we are ready to sign!" It can happen - but don't be disappointed if it doesn't.

So here's some tips...

#When it comes to real estate negotiting, people like to think they are getting a good deal and most like to haggle. So be prepared to compromise, as long as you still get what you want in the end.

#If an offer is an absolute insult and you feel that there is no room to move, then you don't have to accept their offer. Try not to flatly refuse though - they could be testing to see what they can get away with.

#As part of the real estate negotiating process, be prepared to counter offer, and in a way that will help bring both parties closer to what is more acceptable.

#Sometimes, it's not about negotiating the house price. It may be something that's important to them, like including a sofa they love as part of the real estate sales contract. They may be willing to give you your price if you 'throw something in' that you know they want, but isn't important to you. If they feel they are getting something more for their money, a potential buyer may be more willing to concede.

#And the most important thing about offers on a real estate sales contract...get it in writing! Verbal offers are a waste of time if they are not followed up immediately with a signed contract! Serious buyers are prepared to sign a real estate sales contract. Then, and only then can you begin firmly negotiating.

As for the details regarding the real estate sales contract, refer to your lawyer and/or conveyancing firm to ensure that if you are completing the contract, that it is done correctly. If you are selling yourself, to get copies of the contract, ask your solicitor to provide a blank copy. You can also try your

state real estate body. You can buy blank contracts through them, however, you will most likely find you can only buy them in bulk. So try your solictor first.

It is even more important if a 'special condition' needs to be included in the contract. If this is the case, it is better to err on the side of caution and refer this immediately to your solicitor/lawyer.

Good luck with your real estate negotiating and real estate sales contract!

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