Up Your Game: Proven Negotiation Techniques in High-end Real Estate Purchase
If you’ve ever played poker, you know that the key to winning isn’t really about the cards you hold—it's about your ability to bluff. Buying an exclusive estate is similar. Success not only depends on your bank account, but your negotiation prowess.
To make sure your next negotiation feels like you're playing a game of solitaire instead of Texas Hold'em, I'm sharing the top five strategies that could give you an edge in the high-stakes game of real estate negotiation.
1. Get ready and understand the players
Like preparing for a chess match, you need to do your homework. Understand the current market trends, comparables, and the specific aspects of the exclusive estate you're eyeing. The more you know about the property, the stronger your negotiation position.
A wise man - and by 'wise' I mean my old high-school tennis coach - once told me, 'Son, never underestimate the importance of doing your homework unless you want to get schooled.' So I did my homework... and look how I turned out!
2. Stay poker-faced
No, I don't mean wearing sunglasses indoors. I mean not revealing your motivation level. Exuding less enthusiasm could work in your favor— a fact that’s even more true at the higher end of the spectrum due to the smaller buyer pool. Restrain the urge to gush over the spa-like bathrooms or express how perfect the estate is for your rare vintage car collection.
3. Go slow and steady
In negotiation theory, there's a concept called BATNA (Best Alternative To a Negotiated Agreement). The better your BATNA, the more power you have. Put simply, be prepared to walk away.
4. Keep your eyes on the prize
The purchase price isn't the only thing up for negotiation. Consider other perks like furniture, certain repairs, high-grade wine cellars, or the speedboat in the dock (I'm not joking about the speedboat.)
5. Hire a skilled negotiator
Unless you’re a former world poker champion, joining forces with a seasoned real estate agent who has a proven track record in exclusive estates is a smart move. They've not only played the game before, but won it multiple times.
References
1. Harvard Business School - Real Estate Negotiation: Getting Creative with Offers
2. Gottschling, T., & Hoesli, M. (2007). Within-transaction price behavior in the housing market. Real Estate Economics, 35(1), 1-30.
