Miscommunication can be a constant source of lost time in day to day living, however, when negotiating the purchase of an investment property it can be financially costly as well. Every experienced investor has had potential deals that seem to evaporate into thin air, just as they were getting ready to sign the contract. While some miscommunication may always be a problem, with the right mindset it can generally be avoided in Real Estate investing.

To clear up or if possible avoid any miscommunication in property deals, understand just how the negotiation and sale process actually works. When the current owner has decided to sell they will approach one or more Real Estate Agents, unless they have a friend in the business or prior experience they will most likely sign with the agent that promises them the highest price for the property. In most cases the seller's primary motivation is to get the highest possible price for the property, and the agent has a contractual obligation to act in the seller's best interest. Of course there are exceptions to this, often a seller needs to sell quickly and is less concerned with price, or perhaps the agent is inexperienced and does not know what the property is actually worth. In any case the investors primary concern is finding properties where the price is well below value, not trying to talk the price down.

Natural sales ability is an important skill for any kind of negotiation, property investing included, but much of the apparent miscommunication in Real Estate comes from a buyer talking the seller into a price they are not comfortable with. Because commercial and investment property contracts are different from residential property there are more loopholes and ways the seller could back out of the agreement if they decide they want to. The professional approach is to find out what the seller really wants, as a way of screening for sellers who are less concerned with the sales price.

Any seller or agent would be foolish to list a property with a price too far below market value, as this would make potential buyers more suspicious of the property, however, many would be willing to sell for far less. The goal of initial negotiations is simply to find out what the sellers real motivation is and determine what price they would be willing to accept on those terms. By being honest and upfront with the seller, or agent, an investor can quickly determine if they are willing to be flexible on the price and establish a basis for more serious negotiations.