What Steps Should You Take to Prepare Before Starting Property Negotiation?
Before starting property negotiation, there are several steps that need to be taken to prepare for a desirable outcome. Knowledge is power, after all.
Market Value Research
Step one is knowing the market value of the property in question. This means researching the neighborhood and considering factors like the real estate investment advantages in Thailand and the wider economy. The PropertySights Real Estate negotiation process starts here.
Understanding Property Law and Taxes with Personal Priorities
Next, you need to take stock of priorities and restrictions going into property negotiation. This involves understanding the local property law and taxes with your budget and targets that you’d like to hit, but it also means knowing the person you’re negotiating with.
Negotiation Plan
Finally, you need a plan when going into real estate negotiation in any country, including Thailand. Market research will inform this, but knowing the parties involved is just as important. What are the pain points of yourself and the other party? What are the motivations? Digging to the bottom of these questions can give you an edge.
What Skills Should Your Property Negotiator Master?
Your property negotiator should master several skills starting with active listening and the ability to build rapport. By tuning into subtle signals like body language and tone of voice, we gain a deeper understanding of the other party’s position, strengthening the negotiation process (Rubin and Brown, 1975).
Effective questioning is another strategy along the same vein. By asking the right questions at the right time we gain valuable information and further build the relationship, potentially leading to a more beneficial outcome.
Finally, problem-solving skills are indispensable in property negotiation. Our approach at PropertySights real estate includes analysis, creativity, and collaboration.
With analysis, we break down the problem to understand its root cause. Creativity comes into play as we think outside the box to come up with innovative solutions. And finally collaboration means working with all parties to find a mutually beneficial resolution.
What Strategies and Tactics Your Property Negotiator Should Use To Get the Best Deal?
To get the best deal, your property negotiator should use strategies like the competitive or cooperative strategy and tactics like sound arguments and threats.
With a competitive Strategy, the focus is on maximizing individual gains. The negotiator might withhold information, minimize concessions, and maintain a firm stance. It’s a “WIN-LOSE” scenario.
On the other hand, a cooperative strategy emphasizes mutual benefits. It’s about finding common ground, building trust, and fostering collaboration. The end goal is a “WIN-WIN” outcome. Generally, a mix of these two strategies leads to the best results.
Within the overall strategy, there are also tactics like threats (hinting at other interested buyers) or sound arguments (highlighting the property’s great location or future nearby projects).
What Pitfalls To Avoid in Property Negotiations?
There are plenty of pitfalls to avoid in property negotiations. Here are a few to think about:
- Don’t make unrealistic offers. For buyers, this means avoid lowballing and for sellers, it means not setting your price too high.
- Don’t get emotional. Getting angry, frustrated, or even sentimental about a deal could mean poor returns or no deal at all.
- Don’t be inflexible. This can lead to the souring of a relationship before negotiations have even begun.
Why Knowing the Nuances of Thai Culture Will Help You in Property Negotiation in Thailand?
Knowing the nuances of Thai culture will help you in property negotiation in Thailand because it can mean avoiding causing offense for inconspicuous actions. 2010 research into the impact of culture on negotiation from Jeanne Brett suggests that these nuances are pivotal in any process. It’s no different in the ‘land of smiles’.
As an Asian culture heavily influenced by Buddhist tradition, Thai people normally bow instead of shaking hands. More specifically, they perform a small bow with the hands pressed together, known as ‘wai’.
There are also many things to stay away from in Thailand, such as wearing shoes in people’s homes and sometimes businesses. Pointing can also cause offense and should be avoided. For more info on this topic, check out our top x tips for great real estate investment in Thailand.
For the best results, consider taking our expert at PropertySights Real Estate who knows about the local customs and traditions. It could be just what you need to strengthen your position.
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