6 Negotiating Tips to Take You from “House Won’t Sell” to Close
Negotiations are a large part of a real estate agent’s job and it’s imperative that one masters the concept of it to succeed in the real estate industry. Proper negotiation allows one to bring compromise between two or more people, resulting in both parties feeling as if they won.
Do most real estate agents consider themselves a good negotiator? Some might, but those that do might just be agitating one or both parties of a deal or negotiating their commission. Considering yourself a good negotiator is a bit conceited and when do you recall being able to negotiate all that much with someone who was full of themselves?
Here’s what you can keep in mind when negotiating:
- It Isn’t About You
You aren’t trying to prove how cunning you are by swindling one side to do what YOU want. No, you’re trying to have both parties come to an agreement so the seller can stop thinking their house won’t sell and the buyer can quit biting their nails wondering if they’ll get the house they want. You’re just a third party negotiator.
- Knowledge is Power
How can you bring everyone to an agreement if you don’t know what’s going on? Make sure that you’re asking questions constantly: “What were you thinking of doing?”, “Can your buyers come up just a bit more?”, “Can you afford to wait another 65 days before finding another buyer?” By asking questions you can keep your opinion out of the deal and make sure you know what you need in order to bring it to closing.
- It Should Be a Win/Win
If all parties walk away feeling they’ve won then you’ve done your job right. This may seem impossible at some points, but if you don’t strive for this then you run the risk of one party suddenly dropping out because they feel they’re getting the short end of the stick. Let’s not even mention the loss of potential repeat business, a referral, or your reputation being tarnished.
- Don’t Get Too Serious
Be careful that you don’t become too attached to the deal and start sending the wrong signals. Calling either party too much or will result in them thinking that the opposing end is becoming desperate. If they think they have an advantage they might change their negotiating tactics which could result in everything falling apart.
- Understand Where They’re Coming From
Sure, to you it’s just another job (and paycheck), but to either party it’s one of the biggest decisions of their lives. The number of listings you sell in a year might be right around the same number of homes someone will buy/sell in their entire life.
- Keep Your Commission Out of It
A lot of agents throw this one out there without hesitation, but where’s the self worth? If you’re working with a seller, it’s already in the listing agreement and the buyer should not be worried about it after they’ve already been working with you all this time. Keep them focused on the house and the other party when negotiating.
By applying the 6 tips above you should be able to improve your negotiation skills, slapping more “sold” signs on listings (even if the seller was thinking the house won’t sell), and land more buyers into the house of their dreams.
The smoother your transactions go the better chance that they will follow through.
Photo Credit: Benko Zsolt