Negotiation is not just an art but also a science. It has a very important role in real estate transactions. No deal is finalized without negotiation. In this article, we will get to know how can we master the art of negotiation in real estate.
Here are some magic tips to help you win real estate negotiation: –
Don’t be too Excited
It’s okay to be excited a bit while discussing the deal with the client. But getting over-excited is not right. You shall maintain your etiquette. Speak less and only when necessary. Try to be a good listener.
Try to be silent if required. Your silence may urge the opposite person to take the decision. And things can be in your favor.
Know Your Stuff
Before entering the negotiations, have proper knowledge about your property, rates prevailing, area etc. This is because if clients raise any concerns, you shall not sound dull. You shall be immediately able to answer the questions.
Moreover, at times the negotiation round goes too fast. You won’t have enough time. If you are not prepared well then you may lose the deal.
Allow them to Start the Conversation
If you are a real estate agent helping the seller then you must know the listing price. And if you are a real estate agent helping the buyer then you need an offer price. In both cases, it’s always better to allow the client to start the conversation.
This will help you to know the client in a better manner. Going forward with the deal becomes easy for you.
Increase Your Knowledge
Try to increase your knowledge. This will be very helpful to win over your clients i.e., buyers, sellers, tenants, etc. You can increase your knowledge by studying about successful real estate investors. Also, you can get in touch with city planners of your city and increase your knowledge base.
Try to Win Trust
Trust is very important in real estate negotiations. You may win in a negotiation on the basis of a lie. But you will lose the relationship with your client. So never take the help of lies.
Always be truthful to your clients. Give them the complete and correct information. This will develop your trustworthiness for you. In fact, you will be able to get more clients if you win the trust of your clients.
Have a Contingency Plan
Always have a contingency plan. Suppose the buyer doesn’t like the property you are representing, then you shall have other properties matching their preferences.
As an agent, you are not representing your own interest. You are representing someone else’s interests. So having more options helps you to represent your client in a better manner.
Focus on Emotions
Real estate transactions are not just about finances. But emotions also play a great role in this. A buyer may be ready to pay a bit more amount for the property if he/she is getting their dream home. On other hand, the seller may be ready to sell the property to their ideal client i.e. young family.
This emotional attachment of clients shall be taken care of while dealing with them. You shall try to talk to each party involved in the transaction to get a better idea. This will help you to negotiate in a better manner.
Always Be Polite and Courteous
The clients and agents with whom you are dealing today, maybe you have to deal with them again in near future. So never spoil the relations with them. Always be polite and courteous while negotiating with them. Try to understand them properly. You can reject the offer gracefully also.
Know When to Walk Away
One of the most important aspects of real estate negotiation is that you shall know when to walk away. But this shall not be done too fast. Firstly, understand your client. Talk to them and provide them with the best information possible. Help them in best possible way.
At the same time also educate the client about what best is available for them and what they shall not go for. But you shall have some bottom line. You cannot go beyond that bottom line.
Do Risk and Reward Calculation
Negotiations are not always meant to be won. At times you may be in a situation where things may not be in your favour. The deal may not be rewarding you as per your expectations. So, in such a scenario it’s better to do a risk-reward analysis.
If the deal is not going in a direction that you expect then in such times it’s better to walk away. There is no harm in that. It’s not necessary to crack the deal by making a loss.
Negotiate Face to Face
It’s always better to negotiate face-to-face. This can be meeting personally. Because in this way you can understand the client in a better manner. It gives a personal touch and you can solve the concerns raised by clients in a better manner.
When negotiating face-to-face you can also understand the opposite person’s gestures and expressions. This will help you negotiate well. This is not possible through text messages.
Avoid acting as its Your Last Deal
At times it has been found that agents consider the deal which is in front of them as the last deal of their life. They want to crack the deal at any cost. This shall be avoided. This will make the opposite person a bit uncomfortable and uneasy. Instead of this try to listen to the issues a client is facing and try to find solutions.
Understand the Opposite Party
Don’t rush towards negotiation without knowing about the opposite party. Try to understand the goal of the opposite party. This will help you to give them the best deal possible.
Take for e.g., if the client is looking for commercial property. So, after knowing this you will try to show them the best commercial property in the area preferred by the client. This will help you to negotiate in a better manner.
Conclusion
There are so many little things that you can do to be best at real estate negotiation. Try to apply the discussed tactics and improve your negotiation skills. This will help you crack more deals in real estate.
