A real estate agent requires preparation and skill to be a great negotiator. Although every negotiation is different, there are fundamental rules to guarantee success. A successful real estate deal means both parties received what they wanted. The effective negotiation tactics are based on mutually beneficial goals.
Here are 5 rules to boost your negotiating skills:
- Research
Doing your homework is important before entering the negotiation process. You need to gather as much information as possible about your buyer and/or investor, the other party, the property, the market, the finances, and the law.
The agent with the most information pertaining to the negotiation will usually walk away with the better outcome. More often than not, negotiation is not always about the money but solving a problem the other party has.
- Plan
Before every negotiation, it is advisable to prepare a strategy which is based on knowledge you’ve acquired through research. The best negotiators always set their outcome in advance and plan the steps to reach it.
They’ll think about the possible objections and how to handle these oppositions. By planning ahead, you’ll be more confident and competent during the negotiation which will lead to your success.
- Listen
Listening is a key skill as your body language signals whether you’re listening to the speaker. During negotiation, it is good to repeat what’s being said and clarify all information to ensure there’s no miscommunication. Follow the 90/10 Rule where you listen 90% of the time and talk only 10% of the time.
A strong tactic when negotiating is actually keeping quiet as silence is usually awkward and uncomfortable, and many a times the other party will break the silence by revising their offer or offering a concession as they interpret silence as being disappointed.
- Be Gracious
By being calm, courteous and respectful, you’re assisting achieving a positive results for all parties. It is crucial to note that the goal of negotiation is not getting everything you want.
It’s actually about communication and cooperation, and that both parties enter and leave the negotiation on equal standing. Your buyer and/or investor should feel that both parties made concessions and not that one party exploited the other.
- Set High Goals
Successful negotiators generally set high goals while expecting the best outcome. It is important to ensure there is no ego or attitude when negotiating as it is very easy for the other party to pick up on such arrogance.
Setting a specific goal enables negotiators to secure better deals for their buyers and investors than those with undefined goals. Always attempt to negotiate at a higher price to secure the deal that you actually want for your buyers and investors.
Bidding on an auction property might seem daunting but with these steps, it’ll be easier for your buyer and/or investor to own such property. For those who can’t resist a bargain, an auction property is a viable opportunity to possess property at a fraction of the original market price and is a great return on investment.
