ETA REVIEWS: 18 Top Real Estate Negotiation Strategies From the Pros
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“Let’s face facts. At the very core of your fiduciary duty to your client is the idea that you need to work hard to get them the best price. That means if you’re shying away from negotiating, you need to toughen up and learn from the best. As John F. Kennedy famously said, “Never negotiate out of fear, but never be afraid to negotiate.”
Want to become a better negotiator? Grab a cup of coffee, turn off your phone, and check out our 18 best real estate negotiation strategies gathered from top agents.”
SOURCE - Emile L'Eplattenier article 18 Top Real Estate Negotiation Strategies From the Pros
Article Highlights
A strong agent is also a strong negotiator, which makes keeping up with the latest negotiation tactics of the utmost importance. While everyone knows the power of an escalation clause, there’s quite a few other things you can do to perform your best fiduciary duties to your client. In this article, we will be going over a some of our favorite tips to keep your client at the top of the negotiation.
What do we think?
Make Them Think Saying Yes Was Their Idea
The use of affirming language is definitely your key to success, especially if the market is not swinging in your direction. Josh Flagg’s suggestion to offer the co-oping side a quick out is a genius tactic. In a Seller’s market, it is very common for Buyers to pay closing costs and Josh is aware of this, as the Seller is aware. His phrasing acknowledges that he knows the Seller will probably say no and he follows it up with a question: “Would you be willing to consider it?” This gentler approach is sometimes subtle enough that it can turn that 100% “No” to 50% “Yes.”
Set Reasonable Expectations
In a Seller’s market, while it is true that houses are selling for above asking, it is important to remind your client that the sky is not the limit.
More often than not, homeowners will gauge their property’s worth based on what their friends say and what other houses close to them have sold for, but they frequently overlook the quality of the interior. They have their own highest and lowest points that may or may not be realistic. When the high offers start rolling in, and it is riddled with requests and reductions, it’s understandable why many Sellers will be outraged and frustrated. Sean’s suggestion to keep a net sheet with an inspection budget helps your client be prepared if things don’t work out the way they would like. Knowing off the bat that the roof may cost $10,000 to replace at listing will make that request for a new roof a lot easier to swallow and negotiate around.
Negotiate From a Win/Win Perspective
It’s very easy to take things personally in Real Estate, so it is our job as the professional to remind our clients to not act out of emotions. A hard negotiation can both hurt your client and yourself in the long run. Remember, everyone is working towards a finish line and the best way to get there is to figure out a compromise. Kevin Ward always says it best: “Be the agent everybody wants to do deals with.” Bring solutions and not a crisis when problems arise.
Watch: https://youtu.be/02FHk1Yaaik
Try to Have More Data Than the Other Side
Knowledge is power. Have you done your background check on the property? Can you answer questions such as “What does the HOA cover?” Is the house on a flood line? What’s the rental rate? Are houses selling fast?” As Ayoub says, “Gather information and leverage it to your advantage.” Our primary job is to be able to negotiate so you never want to be on the short end of the stick when it comes to information.
Never Underestimate the Power of Truth
It is easy to want to hide things and avoid talking about big ticket items that can break a sale, but did you know these same items can also help push a sale through to the finish line? An informed buyer is less likely to terminate and they are even less likely to ask for repairs if the problematic items are discussed beforehand. Remember: “Make truth your trusted negotiation ally.”
“…the truth tends to set every party free to make informed, quality decisions…” - Erik Serras
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