More often than not, a home is the largest asset that a person will ever own. Actually getting that home (or selling it!) is not always smooth sailing. As the real estate professional, you’re often tasked with having to bear the bad news. There is no easy way to tell a client they’ll need more money to afford a home or will have to lower the price of their home in order to sell.
Sellers want the highest price, buyers want the most bang for their buck and you, the real estate professional, just want to keep your clients happy. So happy that they spread the word about your greatness to everyone in the market to buy or sell their property with you! In order to leave clients singing your praises, you have to know how to truly negotiate the best deal on their behalf.
According to the National Association of REALTORS® Profile of Home Buyers and Sellers, 83 percent of consumers consider negotiation skills to be very important when selecting an agent. Here are the top tactics to help you negotiate like a pro:
Misinterpretation is a major pitfall in negotiations and are difficult to explain to the client you’re serving. REALTORmag suggests that real estate agents eliminate texting from the negotiation strategy because, “Communication should be crystal clear in negotiations, and texts are too often misinterpreted. Vow to speak only by phone or in person with all parties – including your own client – while negotiations are ongoing.”
Zip it and listen
Don’t get so wrapped in what you have to say, that you forget to listen to what’s being said by others. This applies to your clients as well as those you hope to complete the transaction with. Through effective listening, you may uncover the solution effortlessly. Develop a few open ended questions to keep the other party talking and speak when appropriate.
Be upfront with your demands
It’s important to be assertive when negotiating on behalf of your clients. They’ve made you aware of their wants and needs, don’t allow fear or face-value to keep you from getting them. To be assertive you don’t have to rely on anger, aggression or anxiety, it’s all about questioning what’s been stated and NOT taking no for an answer, in a non-threatening manner.
You want to know as much as possible about the property and the involved parties – do your research before the meeting! There are many “bargaining” items your clients may want to consider during a negotiation. You should have an idea of what they would be willing to negotiate before you enter a meeting so you can be prepared for every type of scenario.
The difficulty level of negotiations will always vary, so it’s best that you equip yourself with the tools to make your clients aware that they are listing and buying according to market trends. For seller clients, ListHub’s Market Comparison Seller Report is a powerful tool to help you demonstrate how a listing is performing compared to similar properties in the market and can be used to help you with those difficult price reduction conversations. In addition, Market Snapshot listing alerts are an easy way to keep clients informed about how the market is performing in their area. Click here to learn how you can get the competitive edge and connect with clients at any stage of the real estate life cycle with the business builder bundle.