Part 2: Preparation for a real estate negotiation
In a previous post, I noted that people in the real estate industry benefit by being skilled negotiators. Mostly, that post focused on tactics which are privately profitable but which apply to many situations in addition to real estate, such as buying a new car or starting a new job. Effective negotiating in a real estate context may be special because it is less about asserting an answer and more about asking the right question. In other words, a deeper understanding of the situation reveals a bigger picture which can be combined usefully with a narrow focus on tactics.
For example, and despite the fact that phrases such as “market value” or the “market price” are commonly used, real estate markets display a number of features which are much too complicated to discuss in an ordinary undergraduate business or economics classes. Continue reading