What is "Negotiating"?
May 14, 2007
In Webster's II New Riverside Dictionary the first definition given for "Negotiate" is " To meet and discuss with another in order to reach an agreement; to settle by meeting and discussing;".
In the real estate world, the parties to a negotiation are the buyer and the seller. The buyer would like to purchase the home that the seller is offering to sell. The seller would like to sell the home. The buyer's goal is to purchase the home at the lowest price possible and the seller wants to sell the home at the highest price possible. It seems to me that the negotiations are about what that "Possible" price will be. The challenge is to resolve the parties different perceptions about selling price through a process of give and take.
A good negotiation is not a shoot-out at the O.K. Corral. It is a process of discovery whereby a mutually agreeable selling price is determined. Most good negotiations have an element of fairness.
In the real estate world, the negotiations begin with a written offer from a potential buyer. Since we are no longer in a seller's market, sellers are learning that they must negotiate if they wish to consumate a sale. Buyers, however, are more likely to get the "lowest price possible" if they realize that the initial price offered needs to be good enough to entice the seller into a dialogue.
Professional real estate agents provide one of their most valuable services by guiding their clicents during this important process.
In Webster's II New Riverside Dictionary the first definition given for "Negotiate" is " To meet and discuss with another in order to reach an agreement; to settle by meeting and discussing;".
In the real estate world, the parties to a negotiation are the buyer and the seller. The buyer would like to purchase the home that the seller is offering to sell. The seller would like to sell the home. The buyer's goal is to purchase the home at the lowest price possible and the seller wants to sell the home at the highest price possible. It seems to me that the negotiations are about what that "Possible" price will be. The challenge is to resolve the parties different perceptions about selling price through a process of give and take.
A good negotiation is not a shoot-out at the O.K. Corral. It is a process of discovery whereby a mutually agreeable selling price is determined. Most good negotiations have an element of fairness.
In the real estate world, the negotiations begin with a written offer from a potential buyer. Since we are no longer in a seller's market, sellers are learning that they must negotiate if they wish to consumate a sale. Buyers, however, are more likely to get the "lowest price possible" if they realize that the initial price offered needs to be good enough to entice the seller into a dialogue.
Professional real estate agents provide one of their most valuable services by guiding their clicents during this important process.
posted by shirley harry at 7:59 AM
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