Negotiation is a crucial skill in the world of real estate, and something you’ll be doing regularly as an agent. It might seem a little overwhelming at first, but as you become more confident as an agent, it will be like second nature! Whether you’re just starting out or you’re a seasoned agent who needs a refresher course, we’re talking real estate negotiation tactics in this blog. Hopefully, these tactics can help you feel more confident in your negotiation skills, successfully navigate the market, and come out on top (which we always love).
Do Your Homework
Knowledge is power in real estate negotiations. Before entering into any negotiation, thoroughly research the property, the neighborhood, and the current market conditions. Understand the seller’s motivations and financial situation. I always say, being prepared is the best way to seem like you know your shit (even if you don’t). This information will give you a strategic advantage and help you make decisions during the negotiation process.
Establish Clear Goals and Priorities
Define your goals and priorities before entering negotiations. Write it down, solidify it in your head, sit down and talk about it with your clients- whatever you need to do, it’s important to have your priorities straight beforehand. Whether you’re looking for a lower price, specific contingencies, or a faster closing, having a clear understanding of your objectives will guide your negotiation strategy. Plus, knowing the things that are dealbreakers will prevent you from making any rash decisions if things get a little pressurized.
A huge part of a successful negotiation comes from having trust between parties. If there’s no trust, you’re way less likely to come to an agreement, and at the end of the day it’s your job to get it done as an agent. Take the time and energy to build a good relationship with the other party, whoever it is! You’ll also be way more enjoyable to work with, which is always good as it often becomes a small world in the real estate industry…
Be Patient and Strategic with Offers
This one seems pretty obvious but I’ll say it anyway- avoid rushing into offers or counteroffers! Patience is a virtue in real estate negotiations. Carefully consider the timing and structure of your offers to maximize their impact. Strategic offers can be a powerful tool to sway the negotiation in your favor, and the less back and forth, the better.
Get Your Emotions in Check
Be aware of your emotions and those of the other party. It’s important to stay calm and professional even when shit hits the fan. Recognize your emotions and keep them in check. It’s like playing poker… but with houses.
Negotiate Beyond Price
While price is a significant factor, don’t limit your negotiation to the dollar signs. Explore other areas where everyone can win, such as closing costs, repairs, or including that chic appliance or furniture the buyer is eyeing. This gives you even more of a chance of finding common ground so you can wrap it up and everyone is happy.
Know When to Walk Away
Not every deal is worth pursuing. Be prepared to walk away if the terms don’t align with your goals or if the other party is unwilling to make reasonable concessions. This empowers you to make confident decisions about when to stay in the negotiation and when to *respectfully* say no thanks.
Remember, it’s not just about the deal; it’s about creating an agreement that feels right for everyone involved. Happy negotiating!