Realtors are often faced with the problem of closing sales. While there are several factors that create hurdles, only some of them can be controlled and managed. What can’t be controlled? Market size, changing trends, use of technology. One of the factors that you, as an agent, can work on and bring about a positive change in your performance is learning to negotiate better.
As a real estate agent, you have to negotiate in every deal you handle. You should be able to bring your A-game to every property deal, or else you might not reap the benefits of being a realtor. Thus, to help you up your game, here are a few ways that will help you in negotiating successfully with your clients.
Include an Escalation Clause
Including an escalation clause is one of the most successful negotiation strategies for realtors when negotiating with their clients. This clause is added to the contact to defeat competing offers. When an escalation clause is in place, whenever a new offer is made, the buyer’s bid automatically increases to an already decided upper limit.
For instance, client A has made an offer worth $70,000; however, you know that there would be other clients who would also make an offer. Thus, to help client A secure his offer, you convince him to add the escalation clause in the contract. According to the escalation clause, if the home seller receives a higher bid than $70,000, client A’s offer will automatically increase by $2,000, up to a maximum of $90,000. So, if client B offers $75,000, client A’s offer will be $77,000. However, if client B or any other client offers $90,000, client A will not escalate his bid further.
This clause can be added in cases where you, as a real estate professional, are 100% sure that your client is extremely interested in the property and is willing to purchase it. In cases where you have even an iota of doubt, do not go ahead with the escalation clause. Also, note that this clause should be added only after your client agrees.
Do your Homework
There is nothing more important than doing your research. However, this research should not only be limited to the property or the area where you are an agent but should include your customers as well. You must know the type of people and the various personalities you will be dealing with. This will help you prepare yourself, and you will not be taken by surprise when interacting with your customers.
On the other hand, researching and working on your market will help you become more informed. It would be best if you always aimed to gather more information as compared to the other party. Having done your research will give you an advantage, and you will be in a better position to negotiate as your client might be less informed.
Face-to-Face Meetings beat Emails, Calls, and Texts
Now that the stay-at-home orders are going away, try to negotiate face-to-face, or mask-to-mask. Even though we live in a digital era where everything is done with a tap or a click, make sure that you do not indulge in too many texts, emails, and calls. In-person meetings are more meaningful and result-driven. Always try to meet your client face-to-face so that you are aware of your client’s requirements and know what type of deal you can strike with this client.
Electronic conversation involves a lot of back and forth, and there might be chances where you or your client might miss information during the process. Thus, try to set a time with your client, even if it is for 10-15 minutes, so that you both can sit down where your client can explain his requirements, and you can put forward your proposal. In these physical meetings, you can learn a lot about your client, which might help you negotiate at a later stage in the deal.
Make the Other Party Feel they are in Control
No one wants to be forced into something. Act smart and make your client feel like he/she is the one who is in control of the deal (when, in reality, you are). Your language will play a huge role here. Try and use affirmative language like ‘you might refuse this, but…’, ‘I’m not sure if this a good idea, but…’, etc. There are chances your client might not refuse or might say this actually is a good idea. This is where you’ve won your negotiation and are on your way to strike the perfect deal!
Start off with the Property’s Market Value
Many real estate agents make the mistake of starting off their negotiation with the asking price instead of the market value. This is why research and homework are essential. Find out the market value and then, in your meeting, tell your client about the market value of their property. This way, you will also be more informed and can negotiate with your client accordingly. In some cases, you may quote a little less than what the seller is willing to accept. You might argue that the seller may refuse this right off the bat, but if there is a strong buyer, he might just be willing a little less than his minimum.
Keep the Right Attitude
Your attitude can make or break your deal. You cannot take anything personally. You will come across a lot of different people and various personalities. However, how you deal with them will define you as a real estate agent. Moreover, you should learn a thing or two about persuasion. A lot of agents go in the deal, thinking that it is a battle which they have to win. This thinking is where everything goes wrong.
Keep your ears and heart open, listen carefully, and then react. Find out what your client has to say, what he is looking for, the price he is willing to accept, and the timeframe he has. Go back, dig in, find out more about the property, the options you can give to your client, and then put your cards on the table. This is where you will have the upper hand and can negotiate the deal in your favor.
Be Willing to Walk Away
There is no shame in accepting that you are in the business to make money. If any of your real estate deal does not serve this purpose, you have the option to say no and walk away. But do not opt for this, until and unless you have exhausted all your options. Once you are satisfied that you have put in 100 percent, negotiated with the client to a huge extent, and even went a mile further to make things work, you can walk away with your head held high. Remember, if you choose to say no and walk away, do it with dignity!
Implementing these negotiation strategies the right way will undoubtedly help you close more deals – successfully!
Idrees Shafiq is an SEO analyst at Research Prospect with a diverse experience in the field of digital marketing particularly at the organic end. He is also an active tech enthusiast with a will to absorb and convey acquired knowledge to the world. In his leisure time, he enjoys indulging himself in a variety of exquisite cuisines for the sake of earthly fulfillment.