Real Estate Negotiation
Negotiation is a crucial skill in the world of real estate
…and mastering it can make all the difference in securing a successful deal for you and your clients. Here our 8 steps for mastering the art of real estate negotiation:
Do your homework. Before entering into any negotiation, it’s important to have a solid understanding of the market and the property in question.
Know the value of the property, as well as any unique features or potential issues that may affect the price. This means doing your research on the home and the area it’s in.
Do a comparative analysis and look back into the history of the home on MLS, the home inspection report, and wherever else you can find information. If you have access to the deed this is a fantastic place to look!
Know your audience. Different people will have different priorities and motivations when it comes to a real estate deal.
It’s important to understand what the other party wants and tailor your negotiation approach accordingly. The sellers may value having a longer time to get out of the house.
Whereas the buyers want the lowest possible price. Using these two pieces of information together can help you….
Be prepared to compromise. Negotiation is all about give and take, and it’s rare that both parties will get exactly what they want. Be prepared to compromise and find a middle ground that works for everyone.
Take another simple buyer and seller scenario:
A seller want more time to give the buyers possession so they can find another home.
However, the super excited first time home buyers cannot wait to get out of their apartment and into a home with a yard for their dog! The sellers agent could negotiate terms that allowed the sellers to give possession only when they found another home, but the sellers would have to pay all the closing costs and come down on their price a little.
Communicate effectively. Clear and concise communication is key to any successful negotiation. Make sure to listen carefully to the other party’s concerns and address them in a respectful and professional manner.
Use non-verbal cues to your advantage. Body language and facial expressions can speak volumes in a negotiation. Make sure to maintain eye contact, keep an open posture, and avoid crossing your arms or appearing defensive.
Stay calm and collected. It’s easy to get emotional during a negotiation, but it’s important to stay level-headed and avoid getting overly aggressive or confrontational. Keep a cool head and stay focused on finding a mutually beneficial solution.
Don’t be afraid to walk away. If a deal isn’t coming together, it’s okay to walk away and explore other options. This can often be a powerful negotiating tactic and can help you get the deal you want in the end.
Seek guidance. If you’re new to real estate negotiation or just want to hone your skills, consider seeking guidance from a mentor. Other real estate agents in your office can offer their words of wisdom and help you navigate your scenario.
Keep in mind you can always call your broker in on the issue. (Psst… that is what they are there for!)
By following these steps and practicing your negotiation skills, you can become a master at securing successful real estate deals for you and your clients.
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