There is much more to successful negotiation than stating your terms and intimidating your opponent into submission. There is an art to real estate negotiations, and there are certain tactics and traits that make an agent an excellent negotiator. Does your real estate rebate agent have what it takes to be a strong negotiator for you during the real estate process?
The truth of successful real estate negotiations is that a good deal is fair to both parties – and great negotiators are made, not born. Here are 7 key points to remember about successful negotiation, and why agents with strong negotiation skills can put you at a strategic advantage.
7 Negotiation Tips and Signs of an Excellent Real Estate Rebate Agent
1. Education is key
There’s a difference between reading a book about negotiating and actually investing many, many hours in understanding the techniques and psychology involved in the negotiation process. Negotiation is a fine art, a skill that is developed over an extended period of time; one that allows the negotiator to take control of negotiations and use his or her advanced techniques to advocate effectively for the real estate client.
2. Great speakers can sway people
The ability to convince others that your viewpoint has merit is critical to success in the real-world application of negotiation. It’s important to note, however, that listening to the other party, empathizing with their concerns, and devising solutions based upon what is learned during negotiation is what differentiates average negotiators from those that strive to greatness.
3. Good old-fashioned detective work can make all the difference in the world
Successful negotiation is sometimes nothing more than being more detail-oriented than your opponent. Knowing how to dig up obscure facts that might prove useful in negotiations can mean many thousands of dollars. Sometimes, taking a few extra steps in securing information that isn’t readily available – or thinking of all of the possibilities – can turn a good deal into a great deal.
4. Know when to use information to your advantage
In interpersonal relationships, communication is key. In real estate negotiating, controlling your message is of the utmost importance. Timely, strategic disclosure of facts can work to your advantage – if you know what you’re doing.
5. Contract knowledge is crucial
Many people suffer from the misconception that only lawyers need to have an intimate understanding of contracts. The reality is, real estate contract knowledge is one of the most under-utilized skills in the world of effective negotiation. Contingencies can help to protect your client’s best interests, but over-utilizing them can hurt your case. Understanding contingencies and other contract provisions can help you to ensure that your client receives ample representation and is able to ensure success in the event that a contract challenge ever arises.
6. Know how – and when – to pick your battles
Knowing what points are important is a valuable skill that can mean the difference between enjoying negotiating success or suffering a demoralizing defeat. Some of the details you might learn along the way can prove extremely useful during negotiations. For instance, if you know that one or more prior contracts fell through at the last moment due to financing issues, it could be helpful to your cause to mention that your client has lined up financing. The bottom line (price) is usually only one component of a real estate deal. A great negotiator can determine what is really important to the other party, allowing them to yield on one point while enjoying a greater victory in the long run.
7. Experience really is the best teacher
While abstract negotiating principles are great thought generators, nothing beats real-world negotiating experience. Hundreds of hours of practical negotiation must take place before a negotiator can be considered proficient in the art of negotiation. This experience can yield tremendous results. Situations that would confuse less-experienced negotiators can easily be resolved with ample experience.
Many years of practical negotiating experience has taught us that all real estate transactions can be good – or bad. The deciding factor is often the skill of the negotiator, and their willingness to go the extra mile in ensuring that the client is well represented.
The Glass House Real Estate Approach to Negotiation
If practice makes perfect, we’re approaching immortality as pertains to successful negotiation. Since 2005, we have done hundreds of successful real estate negotiations. This real-world experience allows us to know ahead of time what the opposition is likely to say or do – and we use that knowledge to your strategic advantage.
While you might opt to fly solo in your real estate negotiations, this can be a foolhardy endeavor, one with tremendous downside implications. Since experience is the best teacher, any attempt to negotiate without the benefit of experience and practical knowledge can result in a less than ideal result.
Do yourself a favor: reap the rewards of successful negotiation by tapping the skills of individuals that can help you to reach your goals. Contact us today to see if we can help you buy or sell a home.
"Thanks for reading! I’m passionate about empowering home buyers and sellers with professional advice and unbiased information, throughout the real estate transaction. Unlike most agents, I always put clients first. When it comes to negotiating, marketing homes, and sealing the deal, I’ve got the experience and knowledge you’re looking for. If you have any questions about moving to VA, D.C., or MD, don’t hesitate to reach out."