The three important elements of negotiation are information, time and power.

To be successful in negotiation you must have these on your side.

It is interesting that in property negotiations, most people feel that the other party has more of each of these than they actually have.

For example, if you possess superior knowledge relating to a property transaction, then this information gives you a competitive edge throughout the negotiations.

As a purchaser, you probably have a better understanding of the local property market than the vendor, because you should have done your homework and developed an investment comfort zone.

You also have all the time in the world if you approach investing with the right attitude. Remember, you shouldn't fall in love with a property as they're like buses - if you miss one, there's always another just around the corner!

Yet vendors have gone through all the emotional trauma of putting their house on the market and are probably very keen to negotiate a sale, although they'll never admit it.

With regard to the third major element of negotiation - power -  there is often a perception that the other party holds the upper hand.

This is usually not true in property negotiations. If the other party is emotionally involved, especially if they are a motivated vendor and you adhere to the rules, then the balance of power is with you.

Michael Yardney is a best selling author and one of Australia’s leading experts in the psychology of success and wealth creation through property. He is Australia's most published property author and has probably educated more successful property investors than anyone else in Australia. Go to www.metropole.com.au