Negotiation is an art that separates the top agents from the average. Getting agreement on price between buyer and seller is the point that makes or breaks the deal. In my Coaching Tip today I’ll help you learn to negotiate with the best so you can be the best.
People are basically driven by fear more than any other emotion. It’s the fear of loss, or of not getting what they want, that influences both buyers and sellers. If you understand how this works you can use that heat in the deal between offer and acceptance to bring your clients to the decisions they must make in a timely manner.
Make sure you’re clear on the terms and conditions of the agreement you’re negotiating because that contract will be binding around the buyer’s name, solicitor, deposit amount, inspections, finance clauses, date of settlement, and of course, purchase price.
Negotiation is best done face-to-face. Because decision-making is emotion driven you must be with the client throughout the process to read them and respond accordingly.
A basic tactic is the yes, no and maybe situation in which you encourage your client to make a decision by explaining how a “maybe” is actually a yes or no. Pivot negotiation is based on pricing the property at market value with no room for reduction so the buyer is more inclined to make their highest offer right away.
Your most effective approach is to simply be the trusted advisor so your clients feel comfortable following your lead and taking your advice.
The desired outcome is to negotiate the best current market price possible for buyer and seller. To help your clients maintain perspective always talk in terms of percentages rather than dollars. $50,000 sounds like a lot of money, but it’s only 5% of a million-dollar property. Don’t let them miss a great opportunity over a 5% difference.
Leverage positive emotions as well as sense of urgency. A little humour in the right place can alleviate indecision. You also need to remain neutral so the deal is about the clients, not that you desperately need the business. These are the elements of negotiation that result in a maximum sale price. Be straight, be clear, be consistent, and make your clients feel like winners.
I hope you’ve enjoyed today’s Coaching Tip, and I look forward to seeing you here again next week.
Humour in the negotiations help buyer to relax. Not too far out there but puts a mental picture in buyers mind as to how close they are to buying it.
Josh,
I like the argument for talking % rather than $ amount.
I also like the concept of “Congrats Mr & Mrs. Buyer you now own 80% of your desired property….lets now discuss the remaing 20% etc.
I would like you to address negotiating with the seller …any tips there?
Hi Steve,
Thanks for your questions – Josh’s first point is to always find out the “Why” to their decision. In regards to using % figure in negotiation versus $ price. Dialogue such as “We have got sold 98% of home at the full price and having trouble on that last 2% – let’s talk about this more”.
Hope that helps