A negotiation is a process, not an event. Allow me to demonstrate.
Consider the case of a novice real estate investor we’ll call Max Newbie. Max makes the mistake of approaching the negotiation over the purchase of a small apartment building as an event, something you attend and that plays out in front of you. As a result, when he begins the first negotiation session, he behaves as if he is watching a show at the local cinema.
By understanding that negotiation is a process, Max would understand that it requires strategic planning, thoughtful consideration and that it does not need to be completely wrapped up one way or another in one sitting or setting. So Max wanted to close the dtransaction too soon and lost the deal.
The process of successful negotiation begins when you establish your goals. You simply cannot involve yourself in any negotiation process, for real estate or for anything else, unless and until you have delineated your own set of goals or objectives.
When it comes to the buying or selling of real estate, when it comes to setting and establishing goals relating to a future or potential real estate negotiation, there are some factors that you must keep in mind.
The main reason you will be buying or selling a piece of real estate is to enhance your investment portfolio. Your monetary bottom line in a proposed real estate transaction The optimal time frame you desire to consummate transaction
If you are like our friend Mr. Newbie who we mentioned before, you will not properly set out your goals and strategies before you commence real estate negotiations. Therefore, because you have no goals — like Mr. Newbie — you really lend no structure to your overall negotiating position.
Main Reason for the Proposes Real Estate Transaction is mainly for an income producing purpose. When you are buying or selling income producing property, the bottom line of any negotiation will be whether or not the purchase or sale will enhance your bottom line..
Surprisingly, many people will actually move forwards with a real estate negotiation without setting forth for their own purposes, their financial bottom line. One of the very first goals that you need to set when involving yourself in the process of negotiation is the bottom line price you are either willing to sell a piece of property for or for which you are willing to buy a given parcel or real estate. If you do not make such a firm — firm — determination before you sit down across the opposing party to a possible deal, you will end up selling for less than you planned or paying more than you intended for a piece of real estate.
Optimal Time Frame to Consummate Transaction
As part of your goal setting process, you need to set forth a specific timeline regarding the purchase or sale or real estate that meets your needs. You do need to have some flexibility in your timeline and scheduling. Anyone who has had any experience with the buying and selling of real estate understands that there oftentimes are unforeseen surprises along the way that can hold up a transaction at least for a short period of time.
Nonetheless, you need to establish some absolute scheduling parameters in regard to a possible real estate transaction. This is particularly important if the purpose behind certain real estate negotiations is the buying or selling or property intended for investment purposes. The real estate market can be and oftentimes is very volatile. This, it is necessary in many instances that negotiations towards a closing continue apace.