As a real estate broker, your income is mainly determined by your ability to close deals. To be good at negotiating, you can use powerful strategies to do so. Finding clients is just the first step in the process. To help you prepare for the final negotiations, we at Lions Group have prepared a few tips in this article.
Proper understanding of real estate negotiations
The art of negotiation is for two or more parties to find common deal terms that are acceptable to all. Real estate negotiations usually end by one party compromising or by entering into a contract that serves the interests of both parties. To service the deal, the contract may be written with specific clauses that satisfy the interests of the parties. Details such as the price, the time by which the deal will be finalized, credit issues, and more can be modified to suit the situation.
Remember: The deal-making process goes most smoothly when each party feels that it has gained something of value to itself during the negotiation.
Be proactive
During negotiations, in your role as a broker, it is best to be proactive rather than passive. It's important to stay positive, take strong positions, communicate clearly and listen with empathy. Try to avoid being passive or not listening well to both sides.
Unfortunately, there are often brokers who prefer to talk rather than listen during negotiations. This leads to a failed deal. That's why it's important to listen to both parties, they are most likely to voice the things that bother them. Understanding them is the easiest way to resolve any issues.
Asking questions leads to positive answers and results
To finalize a deal, both parties need to be flexible. Be prepared to compromise and if necessary change your mind on certain issues. If you are trying to persuade someone to change their mind, make them reflect on their own beliefs and point of view. Start changing the way you ask them questions. This will make them more flexible and open to new ideas.
For example, the buyer might express his opinion like this, "I will end the negotiations if you don't agree to reduce the price by 10,000 leva to fix the roof leak!" A more positive way for you to intervene is by asking the right question. In the example situation this would be, "What is the value of the discount you can give us in relation to the leaking roof?" This will make the seller feel that they are in control and that an agreement can be reached on the matter.
Key strategies in real estate negotiations
To increase your chances of success, use the following strategies when negotiating real estate:
- Stay positive, no matter what. Smile and make the other party feel appreciated. Inside, everyone wants to be liked and respected. Present yourself well to your clients.
- Negotiate livenot online or over the phone. People respond more to tone of voice and body language, both consciously and subconsciously, than to the words you use. If you use email or messaging to negotiate, your tone and message are not as easily understood.
When negotiating, think about your body language. Don't cross your legs and arms in the conference room. This shows the other party that you are "closed" to their ideas and can even make you look angry. It is better to take an "open stance" with your palms up and a smile on your face. Try to look your interlocutors in the eye as much as possible - this helps you look honest and trustworthy.
- Discover common interests.
Compile a list of deal points that both parties will agree on seamlessly from the outset of your meeting. Then focus on resolving any issues that may have arisen and reach compromises. If the other party does not agree to the terms you are proposing, be prepared with an alternative proposal, backed up by evidence in favour of it being the best option. - Don't get emotionally attached to a deal.
Even if you really really need the commission, don't act from a position of need. Ironically, the fear of blowing the deal may be felt by others and scare them away from making it. That's why you shouldn't be emotional during negotiations. Show your good sense of humor if it is appropriate. If others are smiling too, they are more receptive. - Bring things to a positive outcome.
Before you leave the negotiating room, make sure everyone is happy with the outcome. Shake hands with everyone present and talk through the next steps in the process of finalising the deal.
