There are a variety of real estate negotiation perspectives, which will allow each real estate advisor to obtain better results in each of the processes. Each perspective can be coupled in a better way depending on the situation or context.
A negotiation is the effort that is made so that there is an interaction between the parties involved, which is oriented to generate benefits with an agreement where both parties feel validated. For a negotiation to take place, all parties must be willing to participate.
Negotiation is about achieving a result. It should not be assumed that the result of a negotiation is the transaction, sometimes the negotiation is to prepare a buyer or seller for the future.
Negotiation is a process and not a moment
The negotiation begins even before the moment the consultant sits down to talk with the owner. It starts from the phase in which the property is looked for, and compared to the market price of similar properties.
This will facilitate the subsequent phase in which the offers are incorporated, since you will have greater credibility as a broker and will allow the owner to know the negotiation situation beforehand.
Within this process, the phase of telling the story of the owners to probable buyers of the property is also included. This can contribute to the success of the transaction. For example, “the childhood of the girls in this a tree in the garden…” It is about humanizing the property, which gives it a higher value.
It’s not all about the purchase price…
Most real estate consultants focus their attention on the negotiation of the purchase price, whether it is too high or too low, whether it fits the prospective buyer’s budget, etc. However, there are several additional aspects that become important during a negotiation process, such as:
- Closing terms (60-90 days).
- What can be left in the house to increase its value.
- Closing costs and additional costs
Keys to a real estate negotiation
Assertiveness
You can assert your position as a real estate advisor without overstepping your clients’ rights. You can express yourself concretely and demonstrate confidence about your work.
Empathy
Always maintain an empathetic attitude in every negotiation. The success of every negotiator lies in maintaining empathy towards the client’s situation, listening to what he wants.
The combination of these two demonstrates that the advisor is genuinely interested in understanding and knowing the position of the involved parties. It expresses that there is a genuine interest in understanding. When you are expressing your opinion as an advisor it highlights assertiveness and when you are listening it highlights empathy. This will facilitate and guide the negotiation to a point of balance.
What can I control in a real estate negotiation?
Always try to maintain a rational negotiating position (“I want to sell”/”I want to buy”) to achieve a successful negotiation. Complementing assertiveness with empathy is the most favorable for both sellers and buyers, and above all for the advisor, as it helps to guide the process.
The advisor must understand that the key to success in a transaction agreement lies in sitting down to negotiate in an optimal position, so they will agree to start at the right price (in relation to the value), at the right time and with the right context. Once the negotiation begins, the skill/ambition/conditions of the negotiators can affect the outcome of the negotiation, so a balance that benefits all parties should always be sought.
