What does the term “negotiation” entail in real estate?

The term "negotiation" in real estate specifically refers to the process of reaching an agreement between a buyer and a seller. This involves discussions regarding price, terms, contingencies, and other factors that influence the transaction. During negotiation, parties may present offers, counteroffers, and engage in dialogue to find common ground that satisfies both sides.

This process is crucial as it sets the foundation for the contractual obligations that will follow once an agreement is successfully reached. Understanding negotiation is key to successfully navigating real estate transactions, as it can determine the outcomes for both buyers and sellers.

While signing contracts and closing sales are important aspects of real estate transactions, they occur after the negotiation phase has been completed. Assessing property value is also essential, but it pertains more to determining a fair price rather than the interactive process of reaching an agreement.