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There is no "one size fits all" strategy of negotiating a real estate contract. Negotiation is process of communication back and forth in order to reach a joint agreement. Many of our clients have been very experienced negotiators, and we have learned a great deal from them, as well as from books on subject. We would like to share some of our thoughts on negotiating with you:

What do we want to achieve in a negotiation?

The best negotiators bring an attitude of high expectations to table. They are hard on problem and soft on people. Letting seller know what you need, in a clear and reasoned way, is first step toward getting it. We try to keep all of these goals in mind:

Enable you to move into your new home. Obtain lowest possible price for property. Close within an acceptable time frame. Solve any repair issues fairly. Have no title, survey or loan problems, or solve any that do arise. Develop a good working relationship with seller. Have no future problems after closing.

Is a cooperative or combative approach more effective?

Our experience shows that cooperative style is most effective and efficient way to complete a transaction. Professional negotiators usually try to preserve relationship between parties, and work together to resolve problems. The goal is not to reach an impasse in which neither seller's nor buyer's needs are met. Buyers sometimes submit a letter to seller describing why their house is not worth what they are asking, pointing out deficiencies, etc. This almost always backfires, and starts negotiation off with a defensive seller. It is best to anchor your price to marketplace, while remaining very complimentary of their home.

How do you work with a combative strategy by a seller or agent?

The combative style is sometimes encountered. This strategy includes: negative comments, emotional statements, table pounding, threats to walk out, ego involvement, and stated positioning. Creative solutions and trade offs are not as likely to be found in this environment. Working with a combative style negotiator requires a considered approach:

Do not respond emotionally. An angry or defensive response will escalate negotiation into a no-win battle. Do not argue. Arguing usually positions them more strongly and drags negotiation process off course.

Do not ignore their arguments or statements. Listen carefully, but do not accept or reject. Firmly anchor pricing and other terms to outside data. Show that price has not been chosen arbitrarily. Reduce misunderstanding by following up with written summaries of discussions. Do not allow hazy or unclear proposals to stand. Offer some "wins" on some of terms. Face saving is very important.

Look for ways to meet their underlying interests.

Remember that they may have a beautiful home that satisfies buyer's goals.

Is every point in contact negotiable?

Yes. However, one of most effective means of coming to an agreement is to rely on consistent standards or norms when possible. For example, it is common practice for seller to pay for title policy and for buyer to pay survey cost. Using accepted standards prevents buyer and seller from haggling over every point. Working within accepted "norms" for our area helps to legitimize offers, and focus negotiation on just a few points. On other hand, all points in an offer can be used to help structure deal. They offer trade-off opportunities for both parties to get what they want from negotiation.