If you’re in sales, then it’s most likely that you also love the rush you receive from negotiating a great deal. This is great news for your clients who are relying on you to negotiate the best price for them. Mastering negotiations, in any industry, has always been a sought after skill individuals are looking to strengthen far long ago. The study of negotiations, such as incorporating NLP and strategies have been in high demand to help empower negotiators. Whether it is applied to general industry in books or specific to the real estate industry, with real estate designations, the demand exists. We are going to go through five powerful negotiation tips to help you make better real estate deals, as outlined in the Certified Real Estate Negotiator designations.
Allowing the other party to speak first will place you in a better position. Gaining an insight to what the other party is offering will help you adjust your offer, or counter offer, based on information. It’s common to try to find a common ground during negotiations, so you can create a midpoint that will work in your favour. Think about the last time you were hiring someone to do some work around the house, if you’re budget was $400, and you disclosed that, the worker would agree to this price, even if they only charged $300. However, if the worked first stated that they charge $300, and you offer $200, then the midpoint would be $250. Typically when dealing with real estate, the buyer agents knows the price of the home and makes the first offer/counter offer. You may, as the buyer representative begin by asking the seller to propose a negotiated price, before revealing your buyers offer, by positioning your clients in a good light. An example of this script would sound like the following,
“Jack, I know your clients have listed their home for $500,000, it is also a buyers market out there, so I am sure they would want to move forward with a deal that works for them. My buyers are flexible with the move in date, have their pre-approval for their mortgage, and agree to take on some of the burden of repairing some minor work. These are the ideal buyers for your clients, given the contribution of my buyers, what is it worth for you and your clients to move forward with this deal, what is the lowest your clients would accept, so we can all win in this deal?”
Uncover What Really Matters
The fine print is sometimes more important than the selling price. During negotiations, you need to have the full understanding with regards to your opponent (whether you are representing the buyer or seller). Although the final price of the home play a large role in making a decision, it is not the only important factor. You can take the scenario of two buyers who are competing for the same house. It may seem obvious that the home will be sold to the highest bidder, however, that still may not be the final deciding factor. The first buyer may offer $5,000 more, but is also unable to move into the home for another 30-45 days. The second buyer is offering $10,000 less than the first buyer, but they are able to move in within the next week. The sellers are looking to urgently move within the next 2 weeks, so the offer from the second buyer, although it is less, would be more appealing. Being able to solve the problem, and use this as a negotiating tactics will provide you with better results, once you have uncovered the true motivation and can use it as leverage.
Enjoy the Silence
During negotiations, silence can fill in the gap without having you to say much. Welcoming some awkward distances the familiarity of what you are thinking. When you have the realtor present an offer, whether you want to accept or decline right away, give a moment of silence. Whether this lasts 10 seconds to 20 seconds, your opponent will be likely trying to guess what you are thinking. Once you speak, instead of giving an answer, ask a follow up question or two about the offer you just received, even if you don’t agree with it. This breaks down the barrier wall and relaxes the situation, making them more receptive to your counter offer.
Ego Kills More Deals Than Anything Else
Being in a sales position, your negotiating skills always comes into question, with the results determine how strong you are. The majority of sales professionals, especially in real estate, thrive on winning the negotiations, not just for their clients, but also for their ego. This is not a bad ideology at all, by the contrary, it can been seen as an invested interest to ensure your clients get the best deal, it is what drives us. There is a thin line, however, that realtors need to recognize and not cross. Often buyers and sellers may lose a particular deal, which they could have received, however, the agent kept pushing for a deal with their ego in mind. Sometimes in negotiation, flattery or a compliment can work more in your favour than the other way around, even if it’s a simple or subtle compliment. Many negotiators may look at this as laying down their ego, but keep in mind, it’s all strategy to help you reach your outcome, and at the end it’s your clients that matter.
These simple techniques will help put yourself in a powerful position when negotiating, and help get your clients the deal they deserve. In addition, your negotiation skills will also help you build a reputation as a strong negotiator, which will always work in your favour. Negotiations simple boil down to technique, it is more about mental strength and stamina rather than physical. Taking control over the situation works best when it seems to your opponent that they are ‘running’ the show.