7 Real Estate Negotiation Strategies From An Expert

Calgary, Canada, is a beautiful town in southwestern Alberta. The community features the Bow River and miles of stunning riverfront parks and attractions, such as the Calgary Zoo and the Inglewood Bird Sanctuary and Nature Centre. The community also has the Glenmore Reservoir and Nose Hill Park, two popular recreation sites. Locals can also visit the TELUS Spark Science Centre and multiple golf courses.

Negotiation is a key component of business and everyday life. Whether you are negotiating a salary increase, looking for a discount on a purchase, or trying to get a coworker to meet a deadline, negotiation skills are essential. Effective negotiation strategies involve preparation, communication, and a clear understanding of the goals and objectives of all parties involved. As you take the step to buy or sell your Calgary home, these real estate negotiation strategies can help you seal the deal.

Negotiation strategies involve analyzing all the information related to the situation before the negotiation process begins. Research everything from market trends and prices to industry standards and comparable properties before negotiating with a buyer or seller. Even details like average days on the market and if homes are being sold above or below the asking price can influence your approach as a buyer or seller. Once you have these insights, you can determine the most effective negotiation strategy for your situation. Preparation is key, and a well-informed negotiator has an advantage at the negotiation table.

When negotiating, it is essential to have realistic expectations, or you could find yourself in a difficult situation as a buyer or seller. Both parties are trying to achieve their goals, so it is unlikely that you will get everything you want. However, you can still negotiate a successful outcome by staying calm, communicating effectively, and being willing to compromise. It is also helpful to understand that negotiation is a process, and it may take multiple rounds of discussion to reach a mutually beneficial agreement.

Inclusions can be a powerful tool in negotiations. Including value-added items or services, such as furniture or home warranties, can add perceived value to your offer as a buyer. As a seller, consider including pre-listing inspection reports or professional cleaning services to sweeten the deal. These inclusions can give you an edge in negotiations while allowing both parties to feel like they are achieving their goals.

In addition to preparation and effective communication, staying accountable and conducting your fiduciary duties during the negotiation process is important. As a real estate agent, keeping your client's best interests in mind and providing them with honest advice and guidance is crucial. This includes disclosing any known issues with the property and ensuring all necessary documentation is provided to the other party. By upholding these responsibilities, you can build trust with the other party and facilitate a smoother negotiation process.

As a buyer, be prepared for counteroffers from the seller. No matter how well-prepared and researched you are, it is unlikely they will accept your initial offer. Take the time to anticipate potential objections and prepare for possible counteroffers. This will allow you to approach the negotiation with more confidence and flexibility and increase the likelihood of a successful outcome.

When you anticipate counteroffers, you keep your expectations in check and can think through what you are willing to compromise. For instance, as a buyer, be prepared for the counteroffer to have a higher sale price. Determine how much you will spend on a home and know when to walk away. The same can be true for sellers. If a buyer continuously counters with unrealistic expectations or minimal concessions, it may be time to find a different buyer.

Understanding what can be negotiated is a crucial component of successful negotiations. For buyers, price is often the focus of discussion, but other factors may also be negotiable, such as closing costs, contingencies, and inclusions. As a seller, it is important to consider more than the sale price to find terms that meet all your selling goals. Knowing what is negotiable and understanding your priorities can help avoid an unfavorable contract.

Determining a fair price is one of the most important factors when negotiating a real estate transaction. A way to do this is through an appraisal, which provides an unbiased estimate of the property's value. This can be especially helpful in real estate negotiations where the buyer and seller may have differing opinions on the property's worth. By using an appraisal, both parties can come to a more objective understanding of the property's value, making it easier to negotiate a price based on its current market value.

Closing costs are a significant expense in real estate transactions, often amounting to thousands of dollars. However, they are also a negotiable aspect of the deal. As a buyer, it is essential to understand that closing costs include fees for services provided by lenders, attorneys, and other third-party providers. To negotiate these costs, it is important to research and compare fees from different providers, negotiate with the seller for shared responsibility, price reduction, or consider rolling the costs into the mortgage.

Inclusions are often additional items that are not permanent home fixtures. For example, fans and ceiling lights are fixed into the home and should be part of the sale, whereas appliances and furniture can be removed. These items are considered inclusions if the buyer or seller wants to add them as part of the sale. On the seller's end, they may be willing to include these items to close the sale more quickly or at a higher price. It is important to consider the value of these inclusions and whether they align with your overall goals for the transaction.

As a buyer, you may want to negotiate repairs before finalizing the sale. This can be done by requesting a home inspection, which can highlight major or minor repairs that need to be addressed. As a seller, it's important to be aware of any repairs that need to be made upfront to avoid surprises during the negotiation process.

The McKelvie Group is a team of Calgary real estate professionals with expertise in upscale neighbourhoods like Arbour Lake, Citadel, Nolan Hill, and Evanston. Our highly skilled team has exceptional resources and tools to help market homes and negotiate sales. Learn more about how to buy or sell a home with a professional guiding the way.