The Real Estate Agent’s Guide to Negotiating
Negotiation is always the toughest part of what a real estate agent does to earn their keep. It's such a vital part of what an agent does in support of their clients, that it should be at the top of how the consumer selects their agent.
In buying and selling, there are always two sides of the coin, and these sides can’t both win...or can they? The buyer is always going to want the lowest possible price with the most possible value, and the seller is always going to want to sell for the highest possible price with the least effort on their part -- so by default, it’s always going to require negotiation. This can lead to a rough process or an uncomfortable closing, unless you have fine-tuned negotiation skills as an agent. A good negotiator can control an outcome in favor of all parties and keep everything smooth and everyone happy.
The buyer and seller, and often the other agent, are not necessarily skilled in the art of negotiation. So, what do you do to create a winning hand that can get to the closing table?
You can use the following tactics to build your own set of killer negotiation skills as a real estate agent:
1.Know your Audience -- First and foremost, know your audience. Finding out the goals and objectives for your seller and the eventual purchaser (if applicable) should be right at the top of your list of discoveries. Home-buying and selling in many ways can feel like a potential gamble for clients, but as an agent you need to understand how to frame their risks and opportunities objectively to get the contract closed. Additionally, by analyzing personality types and learning how to predict responses, you’ll have a leg-up on any potential meeting with both your clients, as well as the other parties involved.
You’ll want to find out their considerations and possible objections, including:
●Liquid asset needs (the cash they need to close)
●Who plans on living in the home (children, pets, elderly relatives)
●Are they handy to address repairs or is a home warranty needed?
●What is their motivation to purchase?
●Financial needs (and their flexibility on offers)
●Do they need a rent back?
●Their timeline needs
●What is their motivation to sell?
Whether one offer to purchase or many, each one has to be scrutinized to do the best job for the client. After all, the whole point of ratifying the best offer is to make sure that you get