As a real estate agent, it is up to you to ensure that your client gets the best price and terms when buying and selling. A lot can go wrong at the negotiating table, but it is important to remember that this time is when a successful deal is most likely to be brokered.
Unfortunately, a lot of mistakes are made when negotiating, either out of confusion, uncertainty or greed. In order to best serve your clients, you have to be able to avoid these common problems and find the perfect compromise with the other party. Thankfully, this is absolutely possible in today's housing market.
To help you achieve this vital outcome, here are a few tips and tricks when negotiating a real estate transaction:
Learn about the other person
The first thing you should do is figure out who the other person is. Whether your client is the buyer or the seller, that other party is just as important during the negotiating phase.
According to U.S. News & World Report, learning about this person will help you determine points of weakness where you can earn concessions in the deal. If you don't know who they are, you'll be missing out on valuable information that could go a long way toward helping you close.
"You want to make best use of the seller's fears," Ed Brodow, a negotiation expert and the author of "Negotiation Boot Camp," told the media outlet. "So the question is: What are the pressures on the seller of this house?"
For example, sellers may be concerned that the housing market is weak and they won't get enough money. Or, they might already have a new job and home lined up and want to move quickly. Any additional details you can get will help improve your position during negotiations.
On a similar note, you'll also want to learn everything you can about the local housing market. Once, that meant a trip to the local courthouse. Now, you can access mortgage records, warranty deeds and much more online, thanks to CRS Data. Learn about how CRS Data gathers its reliable data to get ahead in the industry.
Avoid negotiating mistakes
While information is important, you'll also want to make sure you dodge a few key negotiating mistakes at this time. Otherwise, all the leverage might shift to the other party.
Greg Nino, a real estate agent with RE/MAX Compass, wrote in an article for ActiveRain that you must be friendly and helpful. What this means is that if the other agent has a misunderstanding, correct them. You can still best serve your client while working with the other people. If that agent doesn't know important details, it could jeopardize the entire deal.
In addition, Nino explained that you must never resort to intimidation. Being rude, mean and sarcastic can only hurt your cause, plus it may alienate your client and push them away from the deal. So, always tell the truth, be polite and respectful - that is the best way to ensure your career is as successful as possible.
Most importantly, a real estate agent should remember who they are and what their education is. Nino noted that some people like to pretend they have an Ivy League education when they don't. Instead, be honest about who you are. That includes staying professional, since you are supposed to be impartial and level-headed. While your client has the right to flip out, you should make sure you are always calm, cool and collected. That way, you can make the best decisions when negotiating a deal.