Mastering the negotiation game: Insights from seasoned agents
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Real estate is a fast-paced industry and negotiation is an essential skill for agents. How well you negotiate has a direct impact on your success. Master the art of negotiation and you can reach more mutually beneficial agreements for buyers and sellers and ultimately close more deals.
We asked two experienced Chas Everitt agents, Bernadine Roos and Andrew Goodwin, to share their insights and tips to successfully negotiate real estate deals.
Understand the market and property values
Preparation is crucial for successful negotiations and the key is understanding the market inside and out. You need to know local trends, conditions and recent sales data. It's also important to be aware of what the market is paying for different types of properties at that point in time.
In addition, gather insight into what makes your particular property unique. With this knowledge and the respective circumstances of the buyer and seller, you can determine fair market value for the property, set a market-related asking price and negotiate from a position of strength. Being well informed enables you to help buyers and sellers make reasonable offers or counteroffers during the negotiation process.
Build positive relationships
Before entering into any negotiation, you have to intimately understand the buyer's or seller's needs and circumstances. One of the main challenges is not knowing their limits, which is why it's essential to ask the right questions.
But negotiating is not just about numbers, it's also about building rapport with your customer. Being friendly during conversations, showing empathy and actively listening to buyer and seller preferences and priorities will help you establish their must-haves, deal-breakers and timelines for purchasing or selling a property. Armed with this knowledge and with their trust, you'll be more confident during the negotiation process and can negotiate the best deal.
Develop a clear strategy
An agent must have a clear game plan before entering negotiations. Define your customer's goals and priorities, consider the desired purchase or sale price, determine the ideal outcome and settlement date and include any specific conditions. It's just as essential to know what the buyer or seller is willing to compromise on during the negotiation process. Their eagerness to buy or sell also influences negotiation tactics.
With all this knowledge and insight, you can tailor your approach and create a strategy that aligns with their goals, while a clear plan keeps you confident and focused, making it easier to negotiate on their behalf.
Use effective techniques
A powerful negotiating tool is helping prospective buyers to create an emotional connection with the property, by not only focusing on the price. Highlight the value of the property and how it meets the buyer's needs and enhances their lifestyle.
Be flexible and open to creative solutions that go beyond just lowering the price. Consider offering additional perks like pre-arranged discounts on transfer fees from conveyancers or adjusting the terms to sweeten the deal. And don't underestimate the power of silence during negotiations. Silence from you as an agent can be your best friend, as a little pause gives your customer a chance to reflect and make concessions.
Always maintain a professional and positive demeanour, avoid aggressive tactics and keep emotions in check. Staying calm and level-headed even in challenging situations will go a long way to helping you reach a successful agreement.
Know when to walk away
Sometimes, despite your best efforts, the terms just aren't right for either the buyer or the seller. Closing a deal is important, but not at the expense of your bottom line. Trust your instincts and know that it's okay to move on, focus your energy elsewhere and explore other opportunities.
To confidently master the art of the real estate deal you need a combination of strategy, empathy and a touch of intuition. At Chas Everitt, we ensure that our agents have the skills, tech and tools that complement their ability to close the deal and provide a memorable customer experience that creates loyalty.
Join the leading real estate company of choice and take your career to new heights. Find out more about becoming a Chas Everitt agent here: https://www.chaseveritt.co.za/chas-everitt-agents/
Author: Chas Everitt