For real estate professionals, the end-game is about closing the deal with the clients. So working on their skills to negotiate, is of high importance in order to stay competitive in their careers.
As property sellers, we always want to sell at the highest price while the buyers prefer the lowest. This is where negotiation and closing techniques can come in handy for you.
Don’t forget that real estate is one of the largest assets that people will invest in, so for sure, there will be a lot more at stake than just money.
WHAT’S THERE TO NEGOTIATE?
In the chase of sellers trying to sell properties and buyers looking to buy said properties, there’s a list of factors that the agreement to buy-and-sell revolves around. Read the summary below:
- Price - not overpriced for buyer and not a loss for sellers.
- Closing Costs - for buyer’s mortgage, used in taxation and insurance transactions.
- Closing Date - duration of the deal’s validity and speed of transaction to sell home to the buyer.
- Financial Contingencies - buyers prove to seller that they can afford the property, with an approved mortgage prior to making an offer to buy.
- Home Warranty - asked by the buyer and offered by the seller, covering the appliances, systems and anything that would need repair.
- Leaseback - for places that take time to move in and out of, the sellers can ask for a “rent-back” or time to occupy their property for sale to the buyers until they can move out.
- Home Repairs - for homes that are not brand-new or been in the market for a long-time, buyers can negotiate for a lower price and reason the costs that it takes to clean and repair the property.
- Appraisal Contingency - buyers with mortgages would be pushed by the seller to waive the appraisal contingency, given that they are responsible for paying the closing amount. Furniture & Appliances - any personal property that is involved in the property should be finalized in the contract so both the buyer and seller can make the necessary negotiation.
- Inspection - whether buyer wishes to shorten the time frame for inspection, it’s up to them whether they are willing to risk having buyer’s remorse.
- Co-op Assessments - maintenance of a property’s common area such as roof or aesthetic improvements, usually settled by the seller when there are open assessments.
THE POWERFUL ART OF NEGOTIATION
Finding a middle ground that works in favor for both you and your client. Knowing which aforementioned factors to modify and adapt to benefit all parties involved is one of the keys to successful negotiation. Here’s 3 ways to master this powerful skill:
1. Proactive > Reactive
It all begins with a positive, strong and kind attitude. Buyers want to work with people who can understand their needs and interests. While being a communicator is important, it’s always a good idea to listen to your clients first before negotiating anything, so any reservations they may have can be cleared up with your offer.
2. Answer With Solutions
After listening to your client’s needs, it’s time to offer them solutions and positive answers on their inquiries. Being open-minded and flexible will help you understand your clients better and in coming up with results to get them to agree with your offers.
3. Be Prepared To Back Out
As much as we want a win-win situation, the decision must be a mutual agreement between you and your client, whether you both accept the terms or not. After much negotiation, you should give the client an option to walk away but at the same breadth, you don’t have to play all your cards. You can also let them know that if the deal doesn’t seem fair for one of you, you can also not pursue the deal.
HOW TO CLOSE A SALE WITH NEGOTIATION
Putting negotiation and closing techniques together in landing a successful sale, doesn’t have to be a challenge to accomplish. Just remember to be professional and that at the end of the day, you are interacting with real people who are looking for homes or their next investments. But if you really need an easy guideline to help remind you, we’ve got you covered.
- Have confidence.
- Make the facts clear.
- Listen and pay attention to your clients.
- Reassure your clients.
- Keep a script that works for your style.
- Have an ace to make the deal successful.
- Just go out and do it! The possibilities are endless.
Even as a certified real estate broker, I still try my best to work on my negotiating skills every day, because the world is ever-changing and we will meet different people throughout the course of our career. But we’re here not just to help clients find the best properties, but also to help other real estate professionals such as yourself to make it in the industry. Feel free to send me your inquiries and I’ll get back to you with all the possible solutions.