Learning how to negotiate well is crucial for your success in real estate. It’s a skill — like any other — that can be improved with practice & by applying key principles to help you along the way.
In today’s show we’re discussing key techniques to keep your cool during the negotiation process, which will help you stay in charge of the negotiation and ensure that your client gets the best deal possible!
“Let us never negotiate out of fear. But let us never fear to negotiate.” – John F. Kennedy
“He who has learned to disagree without being disagreeable has discovered the most valuable secret of a diplomat.” – Robert Estabrook
Simple strategies to keep your cool in any negotiation:
I feel calm and in control when I negotiate, because I:
1. Know my client’s motivation.
2. Know my client’s time frame.
3. Know my client’s NUMBERS: Buyer net sheet / seller net sheet. Secret: It’s not always about the money. Sometimes it’s about the time frame, convenience, or the stainless steel fridge…
4. Know the average Days on Market for the subject property I’m negotiating on.
5. Know the average List to Sell Price Ratio for the subject property I’m negotiating on.
6. Know the OTHER client’s motivation, time frame and situation (via the other agent). Are there other offers? Cash? Agent’s own client? It’s not ALWAYS about the money or ONLY about the money.
7. Know the expiration date of the subject property. Is the clock ticking?
8. Know what the options are for my client. How many homes on the market like this one? Absorption rate?
9. Understand that negotiation means that both parties come to an acceptable agreement, not an all out war of volatility. Keep calm and carry on. Be the rock.
10. Understand that when the buyer wants to buy and the seller wants to sell, I have a deal; I just have to figure out how to put it together.
11. Keep my ego in check. Do what’s best for my client first! Don’t practice ‘self agency’. Be of service and you always win.