Like all negotiations, real estate transactions call for a balance of compromises between the needs of two parties. There is a certain art to reaching a settlement with a seller or buyer, and these skills can be picked up after consistent observation and practice.

Here are seven tips to reach a satisfying agreement during your next real estate negotiation.

1.Study Your Successes and Failures

When it comes to negotiating a transaction, not all techniques work for everyone. So, the first step towards understanding which negotiation techniques work best for you is to study your past. Think back to which negotiations were successful and which were not. Try to recall what you said or did during those interactions and how the other party responded. This reflection can help you figure out the negotiation methods you use most often.

Then, apply those methods in your next negotiation and track out their success rates. By doing this, you’ll be able to figure out what negotiation techniques are suited to your personality and style of interaction.

2.Composure is Key

Controlling your emotions is important, regardless of whether you’re a seller or a buyer. If you’re eager about a certain property, showing those emotions could give the other party the upper hand during a negotiation. When you show a heightened amount of interest and excitement towards a transaction, the other party has the opportunity to take advantage of those emotions.

It’s also possible to lose sight of objective facts if you get carried away with excitement or desperation during a transaction. This is why it’s necessary to plan ahead for how you will communicate your requirements and concessions during a negotiation.

3.Do Your Homework

Succeeding during a real estate negotiation is dependent on how much research and insight you have. As a buyer, it can be helpful to explore the neighborhood and evaluate the property in light of its surrounding area. Know the basics of real estate procedures and the existing laws in your region. It helps to read up on the current real estate trends.

For agents, it is vital to do your reading about both the market and your client’s requirements. This kind of research and study involves knowing the local real estate climate and understanding what would elevate or decrease property rates. The key to presenting a prospect your client can’t turn down is listening to their needs and going the extra mile in making them feel understood.

4.Ask Questions and Listen

Listening to the other party is integral to making a real estate negotiation a comfortable and fruitful process. Allow your counterpart to tell you their thoughts and requirements; but rather than simply absorbing their words, ask questions, and dig for a deeper understanding. After all, a real estate purchase is not just a financial decision; for many buyers, it is also an emotional step.

When both members of a negotiation feel heard and respected, they are likely to be

more open to compromising with each other. Further, an agent who takes the time to learn about their client’s background and their concerns will be able to offer a more personal proposal that is likely to be accepted.

5.Adopt a Win-Win Attitude

The most important strategy for a successful negotiation is to view it as two members of the same team looking for a win-win situation. If you view the other member as the opposition, it will become difficult to reach a middle ground that is beneficial to both of you. This is why the attitude with which you approach any negotiation table should be that of compassion, humility, and attentiveness.

6.Real Estate Terminology

While there are some fundamental real estate terms that all agents should be familiar with, these may sound like jargon to uninformed clients who are new to the real estate world. In cases like these, it’s important to read the room and present information to your client in a simple and comprehensive manner.

Rather than intimidating prospective buyers by throwing around technical terms, try to present yourself as an approachable and empathetic agent who is willing to explain the fine print and slow down for their benefit.

On the flip side, prospective buyers should do their best to read up on some basic terminology. This way, even if your agent tries to intimidate or confuse you during a negotiation, you will be in a better position to ask the right questions.

7.Don’t Be Afraid to Say No

During a negotiation, you may be afraid to say no even when you strongly disagree with the other member’s proposal. While getting to a middle ground is important, this does not require you to give up your position. Even though saying no may be daunting and likely to generate friction, it can be done in a way that prizes communication over conflict.

By saying no, you can communicate your limits to the other party and urge them to think in a different direction. For buyers and sellers, saying ‘no’ is also a good way of eliminating unsatisfactory compromises. Often, you can even say ‘no’ to evaluate whether your counterpart is willing to push the limits of their proposal.

While knowledge and experience are certainly of value, these seven techniques can the gamechanger to improving your negotiation skills. So, even if you’re about to enter your first real estate transaction, you can still ace the negotiation.