Investing in houses requires a multitude of skills:
- You need to know what to look for and where to find it.
- Once you find the information you’re looking for you need to put your number crunching skills to work.
- And then, finally, you’ve got to put your people skills to the task to get the best results possible from your negotiation efforts.
It can be both exhilarating and exhausting…all at the same time…but it’s so completely worth it!
Because you’ve forged the future you want instead of simply sitting back and letting the days – and years – pass by…without a vision and a plan to get there.
But if you’re like many investors, you’ve left the negotiation table feeling like you could have done better.
Could you have gotten a better deal?
Maybe. Maybe not.
But, rather than worry about what could have been, focus on improving your negotiation skills going forward.
Following are five reasons why investors leave money on the table when negotiating.
1. You’re not waiting for the other party to speak first.
The other party’s offer just might be better than what you would have offered…a distinct advantage, obviously.
You can also gather valuable information about the other party’s position.
Bottom line…it always pays to listen more than you speak.
2. You’re agreeing too quickly
Have you ever put in a request for a raise, only to have your boss agree to the increase straight away?
No argument. Just, “okay, right then, we’ll get it sorted right away.”
How did that make you feel?
If you’re like most people you wondered why you didn’t ask for more.
Am I right?
It’s the same idea when investing in houses.
Agree too quickly to the other party’s offer and you may be missing out on making (or saving) money.
3. You’re forgetting that silence is golden
Master negotiators know that silence can speak volumes.
This is especially true when you’re investing in houses because of the emotions that are often involved.
Silence can be uncomfortable, so individuals will often make concessions or otherwise tip their hand when the other party becomes quiet.
This is most effective if the silence comes after a difference has come to light.
4. You’re talking more than you’re listening
Pair silence in your negotiations with listening.
Ask an open-ended question, then wait for the response.
This lets the other party know that you’re genuinely interested in what they have to say and the silence will encourage them to start talking.
When you listen closely you’ll have the opportunity to pick up clues that can help you negotiate a good result for all parties.
5. You don’t have enough information
You need to have all of the facts to make a good decision.
Unlike the stock market, when you’re investing in houses you’re dealing with other people’s needs.
As part of your property research find out as much as you can about the vendor’s situation and more importantly, their mindset.
You’d be surprised how much you can learn from both listening to what someone says as well as what they don’t say.
When you understand where someone is coming from it will help improve negotiations and help the transaction go more smoothly.
Do any of these reasons look familiar?
If so, then you know what to focus on the next time you’re negotiating anything…not just when you’re investing in houses!
You know what they say…practice makes perfect…so get on out there and practice!
More tips related to investment property? Join us at our next Property Seminar – it’s FREE and you get to meet with our investment property experts!