Real Estate negotiation tips for Realtors
As a realtor, 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 and check out our best real estate negotiation strategies.
Make them think saying yes was their idea
No one likes to be coerced into doing something. That’s why smart negotiators often subtly encourage the other party to think they’re in control. A great way to do this is to offer them a quick out.
Studies have shown that using affirming language like “You’ll probably refuse, but…” leads to increased compliance.
Try to Have More Data Than the Other Side
The adage in real estate is location, location, location. When it comes to negotiation, it is data, data, data. Let the data drive your negotiations and decisions. Gather information and leverage it to your advantage. The key is to have more information than the other side.
The person armed with the most amount of information is more likely to win the negotiation. Know the average cost of properties in that area, what the client may lose if they decide against buying and what they will gain by buying
Learn the Power of No
Contrary to popular opinion, “no” is one of the most empowering words someone can say. Here’s what psychologists say on the power of no: “Where negativity is an ongoing attitude, ‘no’ is a moment of clear choice. It announces, however indirectly, something affirmative about you.”
Getting someone to agree with you by saying no can be far more powerful than by saying yes.
Never Underestimate the Power of Truth
Make a point to make truth your trusted negotiation ally. In a real estate transaction, the truth tends to set every party free to make informed, quality decisions that inch everyone steadily closer to the closing table. Separately, the current market climate has not changed the tenets of perceived and/or comparable value.
Learn What the Other Party Needs From the Deal
Learn what the other party needs—not really why they are selling or buying, but what will satisfy them that they have a win-win sale.
Ask questions and praise the good points of the property or the nice character of the buyers if you’ve met them. Put together the best deal so that the closing is smooth and successful.
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