What are some things to keep in mind during real estate negotiations?

On Behalf of | Sep 30, 2020 | Firm News |

Commercial real estate often involves far more negotiation than residential real estate. Since this is a business transaction instead of a personal purchase, negotiations are less emotional. Everyone wants to get the best financial deal, so each party will take the process seriously.

According to BisNow, approaching negotiations with a willingness to communicate and an acceptance that the other side has its own goals will help to make the process go more smoothly. You want to have a win-win mindset instead of thinking of the end result as someone wins and someone loses. This will help you to reach an agreement much more easily.

Know what you want

It also helps if you go into the process with specific goals in mind. Know what you want and how you hope to accomplish it. Having a solid idea of where you want the negotiations to go can help you guide them in that direction and communicate them to the other party so there is no confusion.

Know what the other party wants

Focusing only on what you want in a deal is overlooking the rule of approaching negotiations with a willingness to work together. You need to immediately try to get an idea of what the other party wants out of the deal. This can enable you to compare it to what you want and see if there is a middle ground where you can meet to resolve the negotiations and sign a deal.

Engage in back and forth conversation

Do not try to take over the conversation. This not only prevents open communication but also makes you seem aggressive, which can put a halt to the process. You want to give the other party time to explain its side as well.


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