Negotiating a real estate transaction is enormously complex. Yet, you have to be able to do so competently if you hope to get the outcome that you want. But with so many factors coming into play with a real estate transaction, where do you even start? We hope this post will provide you with a better idea.
Key negotiation tactics for your real estate transaction
The exact strategy that you’ll want to take during your negotiations will depend a lot upon whether you’re the buyer or the seller. But, regardless of what side you’re on, consider these issues:
- Does starting with fair market value benefit you? In a lot of instances, real estate is marketed with an asking price. This number can seem arbitrary, which means that buyers and sellers alike have far too much leeway to negotiate, which can provide a lot of uncertainty. By starting with fair market value, you’re much more likely to get a good price for the real estate if you’re the seller. If you’re the buyer, then the expectations for the purchase price are more realistic.
- Know the data: Hopefully you’ve performed your due diligence so that you know everything about the property in question. If so, then you should have a lot of information that you can use to negotiate. But consider other data at your disposal, such as property values in the surrounding area, the market for the business being housed in the commercial real estate, and the projections for the market in question.
- Know what the other side wants: Sure, the other side either wants to buy or sell the property in question, but what else do they want out of the deal? If you can identify contingencies, then you might be more likely to close the deal.
- Don’t agree in writing until you’re sure: There can be a lot of talk during the negotiation of a real estate transaction, but you should avoid putting anything down in writing until you’re sure that what is being written is a final offer. Doing otherwise could lead to miscommunication and unintentionally lock you into an agreement that you don’t want.
Concerned about navigating these tricky waters?
If so, then take comfort in the fact that skilled legal teams like the one at our firm stand ready to help. We know the ins and outs of the real estate business, which allows us to give our clients the aggressive and holistic representation they need. Hopefully then they can achieve a favorable outcome and move on to the next phase of their lives.