5 Real Estate Negotiation Strategies Smart Buyers Use
“Never negotiate out of fear, but never be afraid to negotiate.” – John F. Kennedy
If you’re shying away from negotiating, you need to toughen up and learn to do it properly because 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.
Are you interested in being a better negotiator? Then relax, grab a cup of coffee and check out these 5 Real Estate Negotiation Strategies Smart Buyers Use.
Real Estate Negotiation Strategies:
1. Know What The Other Party Needs From The Deal:
It’s important to know what will satisfy the other party that they have a win-win sale. Ask important questions, find out why they’re selling or buying, then put together the best deal so that the closing is smooth and successful.
2. Try To Meet The Sellers In Person:
One of the biggest negotiation tips is to meet the sellers or buyers in person. Most sellers/buyers’ first choice is usually someone they like, so if you have a chance to talk to them and find some things in common, you’re in a better negotiating position especially when your offer is amongst others. You stand a chance because they can put a face to you.
Also read: First-Time Home Buyer Mistakes + Life-Saving Tips To Guide You.
3. Negotiate From A Win-Win Perspective:
Don’t make the mistake of starting each negotiation as if you’re on a battlefield, this can hurt your client’s interest.
Learn to take issues and offer solutions instead of turning the negotiation into some sort of crisis. Your client will be thankful and your fellow agents too.
4. Make Them Think Saying Yes Was Their Idea:
Smart negotiators often subtly encourage the other party to think they’re in control because they understand no one likes to be coerced into doing something.
Josh Flagg, Beverly Hills realtor and founder of flagship.com has an example for this rule:
“The buyer is asking for you to pick up the closing costs to close the deal. You’re free to say no to that, of course, but would you be willing to consider it?”
This technique in negotiation leads to increased compliance.
5. Take Your Fiduciary Duty Seriously in real estate negotiation strategies:
To genuinely live up to your fiduciary duty to your client, you need to make a possible effort to get them a better price.
When a deal is closed, no party should feel cheated out, that is to say, the seller shouldn’t feel he underpriced his home and the buyer shouldn’t feel he offered too much money for it.
Will you be trying out any of these real estate negotiation strategies? Did we miss out on any? We’d love to know in the comments.