Meeting in the Middle: 4 Negotiation Tips for Realtors

As a real estate agent, a pretty hefty portion of your job involves negotiating.

Whether you’re listing a house or helping a potential buyer find their next home, meeting in the middle to find a deal that works for everyone is an unavoidable step. Without proper negotiation skills, your client may end up paying extra money than they needed to or in a tricky legal situation!

Either outcome poses the risk that they’ll spread the word of their experience and risk your ability to work with clients in the future.

If you’re ready to brush up on your negotiation skills, we have just the thing! Keep reading to learn about 4 ways to negotiate as a realtor…

1. Make Them Feel Like the Deal Idea Was Theirs

Nobody likes to feel pressured when coming to an agreement with any type of deal.

Each side wants to feel like the deal is fair which is why addressing the best interests of the other party is crucial. In fact, you should try to make it seem like saying “yes” to the idea was the idea of whoever you’re negotiating with!

An easy way to create this dynamic is by making the other party feel like they’re in control. When they feel in control, they’re more likely to have an open mind about your ideas. Statements like, “You’re free to say no, but would you be willing to think about ___?” Or, “This may not be an option, but…”

Phrasing your deal this way offers a quick way for them to say no, which alleviates the “salesy” pressure that often encourages the opposing party to fight back.

2. Emphasize the Best Interests of the Party You’re Negotiating With

If you phrase your offer in a way that only benefits you and your client, it should be no surprise when the offer is denied.

Instead, make sure you touch on the other party’s pain points or how the deal will benefit them. For example, say the seller needs to sell their home ASAP due to a new home purchase or some other life event. Your buyer is ready to close, however, they aren’t willing to pay for closing costs.

Instead of going to battle and trying to force the seller to pay the closing costs, appeal to their problem with a solution. For example…

“You just bought a new home and the mortgage payments are going to be starting soon. We understand that you’d like to sell this home before those start. I have a client who is ready to close on this home, however, they don’t have the resources to pay closing costs. Would you be willing to pay this fee so we can get this house off your hands and you can get settled into your new home stress-free?”

To you, it may be common sense for the seller to pay for closing costs since they can take it out of the transaction. In the grand scheme of things, it’s a small sacrifice to get a new owner in the home so they can move on. However, people have a tendency to get combatant even if the deal is in their best interests if they feel attacked or pressured.

So, come at the situation from a calm, supportive place and make sure they understand how the deal will benefit them.

3. Know Your Stuff

Before you begin a negotiation, you’ll want to be equipped with all of the tools available to you.

These tools can include knowledge of…

• HOA fees
• Market price for similar homes
• The average price of homes in that specific neighborhood
• The home’s specs (sq. feet, number of beds, number of baths, property size, etc.)
• How long the home has been on the market
• What else is on the market
• Why the seller is selling the home/property
• Taxes

Ideally, you want to know more about the deal than the person/people you’re negotiating with. Each bit of knowledge can be used to leverage your side of the deal and why you feel that your offer is appropriate.

Knowing about the market and average price of comparable homes is not just important for this deal but for helping your clients find a home should the deal not work out as well.

4. Honesty is the Best Policy

While you’re eager to make a deal go through, it’s in your best interest to be honest throughout the entire transaction.

Whether you’re helping a client sell or buy, trying to lie or fabricate a situation will eventually blow up in your face. Not only will the other parties involved eventually find out the truth, but you may tarnish your reputation in the process.

When it comes to real estate agent tips, honesty is a core value that you should carry with you for every interaction. Since much of your future business will come through positive reviews from your clients, establishing transparency and trust is essential for those referrals. This is especially useful for new agents, as they haven’t built up a reputation yet.

If a deal isn’t able to close because of the truth, you’re better off taking the high road and hoping for a better outcome with the next.

How Are You Meeting in the Middle on Your Next Transaction?

When you’re working with potential buyers or sellers as an agent, there are certain negotiation skills you’ll need to possess.

How you carry yourself during the negotiation process means the difference between closing or not. Additionally, how you interact during a negotiation process will shape your reputation in the community.

When it comes to meeting in the middle, do you have the right skills under your belt?

If you’re ready to boost your listing, reach out to us today to learn more about our real estate marketing services!