Negotiation has rightly been called an art. It is a very vital skill of life and some are naturally better at it than others. All can continue to become better at it. The proof of mastery is really in the results achieved.

Lets go through 4 critical points in negotiating related to purchasing property in Czech Republic:

1. Have clearly in mind what you are after and what would be acceptable or non-acceptable in terms of the deal.

Many clients come to us with their hearts set on a certain property. Who can blame them? However, the attitude that a person wants a property at any cost really puts the buyer at an extreme disadvantage.

The best scenario is for a client to have clearly in mind what they feel the market value is for the property and what acceptable payment terms are.

Both of these can only be acquired through time and making a study of the local market. And, of course, having locals who are authoritative on the subject is a big advantage.

2. Think about all the possible negotiation factors for the other party.

In Czech Republic there is a strong negotiation factor if the buyer is purchasing with cash as opposed to a mortgage, in particular with re-sale purchases. This factor alone can be worth up to a 7% discount depending on what property sector the intended purchase is in.

Another factor to consider is having your purchase mechanism in place. Experienced Czech real estate agents who have had agreed offers with starry-eyed foreigners have had the thoughts of a quick deal go down the drain as it can take weeks or even months to acquire residency or setup an SRO. Having these in place and informing the agent and seller of that shows to them you are a serious buyer.

3. Make friends with the person with whom you are bargaining.

On the visit to the property, be certain to show respect to both the seller and the agent. If you can get them to have some sort of emotional involvement toward you, it really helps in terms of whether they will later make concessions.

Basic politeness in Czech Republic includes offering to take off your shoes on entering a residence, acknowledging the owner/agent and shaking their hands and asking permission before entering rooms or opening doors in their residence. A little bit of Czech also helps!

4. Be aware of the market conditions and local attitudes toward negotiation.

Of course, when properties of a certain size and price are moving quickly, the owners will be less inclined to offer concessions, knowing they can wait a few days and sell without concessions. A good local contact will help you determine if your target market is such or not.

Also, Czech people typically expect to get the price they are asking for a property. The idea of negotiating off the listed property or that the buyer will want to feel they got a deal is not obvious to them. This is largely a Western way of buying property and thus makes it difficult for them to buy in the Czech market because expectations are that a discount will be given.

Three final tips on negotiation:

Eddie's First Law of Business:
Never conduct negotiations before 10 a.m. or after 4 p.m. Before 10 you appear too anxious, and after 4 they think you're desperate.

Helga's Rule:
Say no, then negotiate.

Truman's Law:
If you cannot convince them, confuse them