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After the Verbal Negotiation the Written One Will Secure Your Real Estate Investment

How to Make the Transition from Verbal to Written Agreement and Make Sure the Contract Is in Your Favor When Buying Real Estate


Real estate investors spend a lot of time hunting down good properties and then negotiating the terms of a sale, or when the time comes to flip it, finding a qualified buyer. But that is only half of any good deal. If an investor is not able to get all of that work and negotiating transferred to a written contract, which is in their favor, then it has all been for nothing. During a verbal negotiation many things are glossed over or forgotten by all parties concerned. By methodically taking notes, and keeping in mind that a written contract will be drawn up when the talking is over, an investor can help themselves get all that they want and protect their end of the bargain all at the same time.

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A smart negotiator will be the one who arrives on the day of the signing with an agreement that they have already drawn up and that the other party must be made to agree to, not the other way around. Many aspects of a contract will become evident to the person writing it, which were never mentioned during the initial talks. These points when presented will then force the other party to re-negotiate, and not the other way around. This style of tactic should be used regardless of the length of a contract agreement, and when employed by a savvy negotiator, it will always afford them the upper hand.

Many times when agreements are being discussed, negotiated and drawn up, the parties involved may believe that they have come to a common understanding, but until it is all committed to writing, and all parties look it over, they may actually not be in agreement at all. Too often, so much is taken for granted or misinterpreted on all sides, and until an official contract is drawn and agreed to, nothing is final.

Whenever anyone is involved in discussions about selling and purchasing, and they know that an agreement will be drawn up to finalize and cement all that was discussed, they will keep very accurate notes, most specifically anything that will later be included in a written agreement to be signed off on. Being able to accurately recall all that was discussed will enable a negotiator to have confidence, and feel secure with the contract that they have written, and will also lend credence to their argument should any arise at the signing.

If the negotiating was done by a team, then all people involved must make certain that they go over the details of the written statement before presenting it as a final offering. Many times even two negotiators on the same side of a deal, who were both present at the initial meetings will have a few points that they interpret differently form each other. They do not want to forget anything and they do not want to show up at a signing confused or in disagreement with each other. Whether a final agreement or a letter of intent has been drawn up, a good deal maker will then consult an attorney, who is well versed in real estate and contract law, and who will then sign off on any written documents that will be used to confirm a deal.

Good negotiators will try to deliver a written agreement as soon after the discussions are ove as possibler. The fresher it all is on everyone's mind the easier it will be for all parties to approve the written statement and sign it. A good negotiator will also know, that even though time is of the essence, it does no good for anyone to sign a document that they do not understand. If the parties being asked to sign an agreement, feel they are not understanding fully what that agreement entails, then they should be asked to sign contingent on :"Subject to attorney's approval." Many times this will relieve the pressure of the situation and the deal can proceed to the next level.

A good negotiator will always end a verbal discussion by offering to draw up the written agreement and to pay for the expenses incurred. The whole premise here is to retain control and to be able to write the deal and bring it to the table as it best suits their side of the agreement. In this way the other parties will have to go through the motions of having specific points either removed or changed in an attempt to suit their needs.

One way a negotiator can get the other side to start to see things their way, and not balk when they finally see it all in a printed contract, is to write the points down as they are being discussed at the initial meetings. Then ask the other negotiators to look at it and confirm their understanding of it. By the time the written agreement is finalized, and the time has come to sign, they will have subliminally agreed to it all and will not feel as if anything is new ground. Seeing something that was discussed in writing confirms that belief for those who have read it. By continually writing down the points as they are discussed, and having the other person read it over and confirm it back to them, they have assured themselves that it is ok. This type of affirmation will help a negotiator to get what they want, on the terms that they have set.


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