The Power of Negotiation: How to Make Deals That Last

Negotiating is an art, and in the world of property investment, it’s not just about squeezing every penny out of a deal. It’s about creating partnerships and solutions that benefit everyone involved.

Let me tell you a quick story. My friend George, eager to gain some hands-on experience, took on the task of project managing a house conversion into an HMO for me. We were sitting in my yurt office reviewing quotes from one of my trusted contractors. George, fresh from an online property investment course, was ready to show off his negotiation chops.

"I reckon I can drive them down more than this," George said confidently.

While I appreciated his enthusiasm, I quickly explained why it’s not always about pushing for the lowest price possible. It’s about building long-term relationships and striking a balance between saving money and ensuring the project gets done right.

Here are a few key lessons on negotiating and property investment:

1. Build Relationships, Not Just Deals

It’s tempting to focus solely on cutting costs but think beyond the immediate deal. If you drive your contractors or partners too hard, they’ll lose motivation. A disgruntled contractor won’t deliver the best results—and trust me, you’ll feel the impact in delays, unexpected costs, and a strained working relationship. Instead, negotiate for a fair price that works for both parties.

Action Tip: Aim for win-win outcomes. Offer faster payment terms or agree to cover costs promptly in exchange for a modest discount.

2. Look for People, Not Just Properties

When looking for your next property investment, don’t just search for the right property—find the right vendor. The person on the other side of the deal matters just as much as the property itself.

I’ve seen great properties on the market for years because the vendor was unrealistic or unwilling to negotiate. I’ve also seen vendors come back to me after rejecting my offer because the higher bidder pulled out. They quickly realised I was offering a fair, realistic deal that could close smoothly.

Action Tip: When negotiating, assess the motivation of the seller. Are they looking for the highest possible price, or are they open to working with you for a fair deal?

3. Off-Market Opportunities Are Gold

Some of the best deals are off-market. Properties on mainstream real estate platforms are often priced too high, and vendors might not understand the developer’s perspective. Sourcing properties directly from motivated sellers can give you an edge, allowing for deals where both parties walk away satisfied.

Action Tip: Build a network of contacts that can connect you to off-market properties. Direct negotiation with motivated sellers often leads to better deals.

4. Think Long-Term, Not Just Quick Wins

George was eager to prove his negotiation skills by pushing the contractor’s price down as much as possible. But what I explained to him was key: getting a contractor to barely break even doesn’t lead to good long-term outcomes. If you’re looking to build a sustainable property portfolio, prioritise relationships over saving a few thousand in the short term.

Action Tip: Be realistic with your offers, whether it’s to a contractor or a property seller. A deal that works well for everyone today means more successful partnerships down the road.

5. Learn to Love the Win-Win

In both property deals and life, it’s not just about winning. It’s about finding a solution where both sides come out ahead. That’s where the magic happens, and where you’ll find success time and time again.

Action Tip: Go into every negotiation with a mindset of collaboration, not competition. Ask yourself: How can I create value for both sides?

Final Thoughts: In property investing, negotiation is about so much more than numbers on a page. It's about understanding people, building relationships, and securing deals that work for both parties. So next time you're faced with a negotiation, remember—sometimes the best win is one where both sides come out smiling.

What’s your approach to negotiating? Let’s chat! Drop a comment below and share your strategies.

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