I have been a full-time real estate investor for over four years. After several transactions, I have learned to love the game of negotiation . By working with real estate experts, I realize that experienced investors have one thing in common: they are excellent negotiators. Fortunately, this is a technique that can be learned and perfected, thanks to experience and training.

In this column, I met two professionals to get their advice and techniques on negotiation: Sébastien Hénaff, a real estate broker for over sixteen years, and Patrick Filiatrault, a real estate investor with a portfolio of over 200 homes (housing).

A WIN-WIN TRANSACTION

A good negotiator operates with the goal of concluding a transaction in which both parties will feel that they are winners. Thus, when interacting with a multiplex seller, Patrick puts himself in the seller's shoes and seeks to understand his intentions and needs. Does the seller want to sell because he wants to retire and no longer have to manage his properties or rather because he has an immediate financial need? A good negotiator will therefore bring added value to the situation by proposing a creative solution , one that he has not thought of himself.

In the case of a negotiation for the purchase of an 80-door building, Patrick Filiatrault understood that the seller did not want to list his building on Centris with a broker, since he did not want the tenants to know that the building was for sale. The seller, who was of a certain age, was inclined to accept a lower price than the other offers because the purchase conditions, such as financing, were more attractive.

Good things in life take time

A good negotiator is first and foremost patient . Haste is a mistake that many novice investors make: they want to close the deal immediately, without necessarily taking into account the state of mind of the person with whom they are doing business.

When he approaches multiplex owners to buy their building, Patrick Filiatrault says that it is generally after the third meeting that the owner is finally ready to begin the transaction. Indeed, the goal of the first two meetings is to build a bond of trust with the seller. In hindsight, he admits that his best transactions were not made during the first contact, but after several weeks of follow-up.

Emotions

One of the most important qualities of a good negotiator is the ability to control your emotions. The negotiation process during a real estate transaction is long and arduous. Emotions have no place in business. That is why it is always important to keep them under control.

Sébastien Hénaff explains that after receiving an offer that is too low, most people are offended. They often make the mistake of ending the negotiation immediately. On the other hand, an experienced investor will not be offended by an offer that is too low, because he knows that a price that is too low does not mean that it is the final price, but rather the beginning of the negotiation. Therefore, the investor who maintains control of his emotions can go all the way through the transaction and come out a winner.

Understanding the psychology of the other person

Finally, a good negotiator knows how to gain the trust of his interlocutor. During his career as a real estate broker, Sébastien Hénaff has witnessed several transactions during which sellers accepted a purchase offer that seemed attractive to them, even if it was lower.

We often forget that real estate negotiations take place between humans. Although the price of the property is important, it is not the only factor that counts.