Since the beginning of time, people have negotiated for better deals and better prices. Today, negotiation is an under-appreciated skill in many circles, but its true power can be witnessed in the real estate industry. Real estate agents’ very livelihood depends on how good they are at negotiating real estate commission and then effectively negotiating on behalf of their clients.
Buyers and sellers both want to get the best possible deal from any real estate transaction. Having an expert real estate negotiator as a representative reassures clients and helps them achieve their goals. Top producing real estate agents have exceptionally well-developed argumentative and negotiating skills.
Following are 5 pressure points of negotiation all real estate agents need to keep in mind during real estate transactions to ensure successful outcome, for themselves and their clients:
Consider Client Limitations:
The main thing you ought to know about negotiating is that nothing is off the table. This means that a good negotiator will take perspective of the limitations of the client and then still find a way to help them achieve their objective. That’s the true ability of a great real estate negotiator, making it possible to not get what their clients wants, but even more. To orchestrate a win – win scenario during negotiations without violating client limitations, agents should plan ahead and take the client into their confidence on negotiation strategy. Having a good BATNA prepared before negotiations is also of value in winning negotiations.
Direct Communication With The Owner:
Maintaining a direct line of communication with the owner of the property is essential to getting the negotiations done right. By maintaining direct contact with the owner, negotiations will be transparent and straightforward. When we talk about communication, we’re not just saying to speak to your client, this is a given. What we mean is for you to truly understand their motivation, their limits and their expectations. This way you will ensure that your strategy for negotiations isn’t flawed and there is no conflict between you and your client during the crucial stage of negotiations.
The Poker Face:
It is important to remain calm throughout the sales process. Selling or buying is like a battle of wits. Whichever party wins the ‘war’ ends up getting the better deal. It is essential not to reveal all the cards at the start of the negotiations. Good negotiators always have a couple tricks up their sleeves to shift the momentum of the negotiations in their favour. Remember that a win-win scenario can and does exist. Your level of negotiating skills should be so impeccable where not only do you negotiate the best deal for you clients, but you allow your opponent to walk away feeling they have also won as well.
Keep your Ego Out:
Ego out, client in. Ego kills more deals during negotiations than almost anything else. Remember during negotiations that you are focused on the best interest of clients. It becomes second nature to most real estate agents to win negotiations, and sometimes at any cost. It is apart of the personality to be determined to emerge victorious during negotiations, and this is not always a bad thing. It’s a talent to be a great negotiator and the drive of this is often what makes individuals successful. But make sure that you understand where to draw the line and not walk away or ruin a deal because of ego.
Whether you are negotiating real estate commission or trying to get the best possible deal for your client, you will at times come to an impasse, when you just can’t make any progress. This can become a very emotional situation, both for agents and clients. In such situations, it’s essential to pacify emotions and keep the conversation going. To overcome this impasse, you would need to understand your opponent and their motivation. If you are facing a problem at one particular point, move on and get an agreement on the rest of the points before circling back to the disagreement. This can significantly increase your chances of getting a win-win situation rather than complete breakdown of negotiations.
Practice makes perfect. Real estate agents need to have exceptionally good negotiation skills to survive in this cut-throat industry. It’s an invaluable skill which can be a differentiating factor between you and any other agent. It’s crucial that you properly understand the situation, communicate with the client and have a solid strategy to win the deal.