What would Chris Voss – ‘Never split the difference’ teach us on mastering Real Estate Negotiation.

Here are ten strategies, inspired by Chris Voss’s ,Never Split the Difference specifically designed for negotiating. Please find below our 10 real estate negotiation tips for buyers that we have successfully used in previous transactions. With the Miami market softening in 2024, buyers are gaining more leverage. However, successful negotiations still demand skill—particularly in written and verbal communication, where tone and intent can be misread. We hope this blog provides not only great use to sellers and buyers but will illustrate how we understand the negotiation process which is an essential skill when hiring a realtor.

Also Read: Real Estate Negotiations for Sellers Inspired by Chris Voss

1. Start with Tactical Empathy (Over Email or Phone)

When negotiating via email or phone, it’s crucial to build rapport from the outset. Since body language isn’t an option, use empathy to ensure the seller feels acknowledged. For instance, in an email, you might say, “I recognize that your home has significant sentimental value, and I respect that as we discuss the terms.

2. Keep Offers Within 10% of Asking Price

Submitting an offer that is over 10% below the asking price can come across as disrespectful, particularly when conveyed through email or text, where tone may be misinterpreted. Aim to stay within 5-10% of the asking price, and include context for your offer in your message: “Considering recent sales in the area and the current market conditions, we believe an offer of $X is a reasonable starting point for discussion.”

Real estate negotiation tips for buyers in the Miami Real Estate Market

3. Use “No-Oriented” Questions in Phone Calls

During phone conversations, steer the dialogue with questions that encourage a “no” response rather than pushing for a “yes.” This approach helps the seller feel more at ease and in control. For instance, asking, “Would it be unreasonable to consider a slightly lower price given the current market trends?” allows the seller to feel less defensive.

4. Label the Seller’s Concerns via Email

If you detect hesitation or frustration in the seller’s email replies, acknowledge their feelings by labeling their emotions. You could say, “It seems that the timeline for selling is very important to you,” which may encourage them to provide more information and help steer the negotiation toward terms that benefit both parties.

5. Use the Ackerman Method in Writing

When negotiating in writing, the Ackerman Method is an effective approach for gradually increasing your offers. Begin at 85% of your target price and make small incremental increases with each subsequent offer. For instance, in an email thread, your initial offer could be 85% of the asking price. After the seller responds, raise your offer to 90%, then 95%, demonstrating flexibility while working toward your objective.

Example: In your first email, offer $4,250,000 on a $5,000,000 home, supporting your offer with data. After the seller counters, increase your offer to $4,500,000, then to $4,750,000, all while maintaining a calm and respectful tone. However, be cautious when employing this strategy if the seller’s agent has recently reduced the listing price. Psychologically, sellers may feel that a reduction has already been made and will be inclined to hold closer to their asking price.

6. Leverage Silence After Sending a Written Offer

Once you submit an offer through email or text, try to avoid the temptation to fill the silence if the seller doesn’t respond right away. Silence can be a powerful tactic, especially in writing, as it encourages the other party to reflect on their position and often leads to a more favorable response.

Example: After sending your offer, hold off on sending follow-up emails too quickly. Allow the seller time to process the offer and potentially come back with a counteroffer.

Real estate negotiation tips for buyers in the Miami Real Estate Market

7. Avoid Splitting the Difference—Negotiate Other Terms via Phone or Email

In written negotiations, it can be tempting to compromise on price, but it’s better to concentrate on other negotiable terms. For instance, in an email, you might say, “Instead of lowering the price, we’re willing to cover closing costs or adjust the closing date to better suit your needs.

8. Be Flexible with Contingencies in Writing

Sellers are typically more open to negotiating contingencies than the price itself. Leverage this in your written negotiations by offering flexibility on inspection timelines or repair credits. This strategy can make your offer more appealing without necessitating a price reduction.

Example: While we’d like to keep our offer price, we’re willing to extend the inspection period for a more comprehensive review, and we’re open to discussing necessary repairs.

9. Create “That’s Right” Moments on the Phone

In phone negotiations, strive for instances where the seller responds with, “That’s right.” By summarizing their perspective, you demonstrate that you understand them and help position yourself as a partner rather than an opponent.

Example: So, if I understand correctly, you’re aiming for a quick sale while not wanting to drop too far below your asking price—does that capture your position?” When they reply with, “That’s right,” you’ve established trust and can steer the conversation toward a mutually beneficial outcome.

10. Be Prepared to Walk Away (And Communicate It Calmly)

If the deal isn’t progressing in your favor, be ready to walk away, but do so calmly and professionally, especially in your written communications. Concluding the negotiation respectfully leaves the possibility for the seller to return with a better offer. In the current market, properties may linger longer, giving you the opportunity to renegotiate later. A week will feel like a month to sellers!

Example: If this price point doesn’t work for you, I completely understand. We might need to step back for now, but please feel free to reach out if you reconsider.” This approach maintains a friendly tone while indicating that you have other options.

The Importance of Precision in Written or Phone Negotiations

In a softening market, buyers have increased leverage, but negotiations conducted via email or phone demand careful attention to wording and tone. One of the most important Real estate negotiation tips for buyers is that without face-to-face interaction, messages can be easily misinterpreted, making empathy and patience crucial.

Are you seeking expert guidance on negotiating your next property purchase in Miami? Reach out to David Siddons for advanced strategies tailored to the current market conditions. We specialize in helping our clients secure the best deals, regardless of how the conversation progresses.

Schedule Time with David (Via Zoom, Call or in Person)

Do you want to know more about Real estate negotiation tips for buyers? Contact me today at 305.508.0899 or schedule a meeting below.

FAQ

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1. What are the Current Best New Condos in Miami?

If you want to hear in more details our opinions on the best new Miami new construction condos. Please read this article:Best New Construction Condos 2022-2023. 

In our opinion, the Residences at Pier Sixty-six are certainly the most interesting and unique. Already well underway this 32 Acre project will be home to the first of its kind Marina where owners will be able to anchor up vessels up to a staggering 400 ft! For specifics of this project see our independent review of this project.

Our Best Luxury Condos in Miami article will prove to be very useful to those looking to compare the existing to the new. You may also want to watch this video which shows the performance of the best Condos in Miami over the last 15 years!

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