Negotiation in real estate. What is it, when is it done and especially how is it done?

What is real estate negotiation?

Real estate negotiation is an important and complex process involving buyers, sellers, but especially real estate agents. In fact, one of the main roles of a professional real estate agent is to facilitate the negotiation process between the two parties and to find the best solutions. The negotiation can be vis-à-vis the financial aspects, prices, payment terms, but also vis-à-vis terms of delivery, date of delivery, methods of delivery for a real estate.

As to how much people are willing to negotiate, this can vary depending on several factors. The local real estate market, the financial situation of the two parties involved, as well as the level of negotiation experience can be significant.

Thus, the margin of negotiation varies considerably. Some sellers or buyers may be willing to negotiate aggressively, while others may be less flexible. There are people who need to sell as quickly as possible and are then willing to negotiate more, while there are people who do not need to collect the price for a real estate asset so quickly. Also, buyers who need to move into a new home as soon as possible will be more flexible and will more easily accept the price/terms requested by the owners.

Regardless of whether you are a seller or active on the Sibiu real estate market as a buyer, below you will find some steps to better understand how to negotiate in the real estate field:

1. Preparation
Start by thoroughly preparing for this process. It is important to know the Sibiu real estate market and find out the sale prices of similar properties in the area where you want to sell or buy. This will help you set a realistic starting price or identify negotiation points.

2. Hire a real estate agent
It is our opinion that in order to successfully complete a real estate transaction, it is ideal to work with a real estate agent who has extensive experience representing your interests throughout the entire negotiation process. A real estate agent has knowledge and experience in the Sibiu real estate market and successfully manages the negotiations between the parties. He knows what similar properties have sold for, what the listing price was for them, and how far the negotiation margin went.

3. Establishing the initial offer
Sellers and buyers will usually make initial offers, upon which further discussions and negotiations will begin. These offers vary and are influenced by various factors, such as the current market price, the condition of the property for sale, and personal desires and expectations.

4. Negotiation
The actual negotiation may involve several rounds of discussions. So don't expect to find middle ground after the first date. It is important to communicate openly and listen actively and attentively to what the other parties have to say. Try to find common ground and resolve issues that may arise along the way. During the negotiation, not only the price is discussed, but also other aspects can be discussed, such as the terms of closing, the necessary repairs and/or other terms vis a vis the method of payment, the term of delivery of the real estate, etc.

5. Documentation of agreement
After a post-negotiation agreement is reached and the trading price is set, it must be properly documented in order to have a local basis. A lawyer or notary can help prepare the sales contract. Only after the transaction is signed at the notary is the process completed.

Negotiation is a common aspect of real estate transactions. Because, isn't it, there is a saying that everything is negotiable in this world. It is essential that the parties involved have patience and excellent communication skills to reach a mutually beneficial agreement.