Real estate agents need sharp negotiation skills to represent their client’s best interests, close deals, and earn an income. While this is a critical part of your career, very few people are natural-born negotiators. Instead, being able to successfully negotiate a deal is a learned skill. It’s equal parts art and science, and as such, it requires both practice and study. The following tips from seasoned real estate professionals will help you quickly learn to negotiate like a pro.
1. Maintain Perspective
Licensed REALTOR® and Certified Divorce Real Estate Expert Amanda Reichert points out the importance of maintaining the right perspective when entering into a negotiation.
"You cannot want a transaction to 'work out' or close more than the client does," says Reichert. "Once you cross that line, the transaction becomes about you and not about the client. Real estate is always about the client — their wants, needs, desired outcome, and their motivation will dictate the end result in most instances."
2. Lead with Data & Ask A Lot of Questions
Reichert goes on to say that it’s a good idea to lead with numbers and statistics.
“It’s important to be honest with your clients and to provide real, hard numbers," says Reichert. "This will help them to move forward with a listing price or an offer price that will win the house. Not every ‘win’ is about the highest price, terms are often a big factor.”
When figuring out the best angle for negotiations, it’s important to ask a lot of questions. Discussing her process for crafting a buyer's offer, Reichert always asks the listing agent a few questions. Her number one concern is finding out what's most important to their seller.
“This gives me an idea of the direction to go in with my buyer’s offer so I can get them into the most favorable position with offer selection," Reichert says.
REALTOR® Tonja Westerfield also believes in the importance of asking plenty of questions.
"The more questions you ask, the more you control the situation and the other parties,” says Westerfield.
3. Figure Out the Non-Negotiables
Often, determining which points are the most important to you and to the other parties can help you come up with a winning solution.
“Once you are clear within yourself what the non-negotiables are, then you can come up with a strategy to accomplish the steps that will get you to your goal," Westerfield says.
Understanding the points each party isn’t willing to budge on can set some boundaries. It also helps you see areas where there might be some flexibility.
4. Practice and Never Stop Learning
Finally, it’s important to remember that your negotiation skills will continue to develop throughout your career. You’re never too experienced to pick up some new tactics or too new to jump right in and start using what you’ve learned.
“Practicing is one of the best ways to learn to negotiate," says Westerfield. "There are books, videos, and classes as well. I personally think every agent should read 'Never Split the Difference' by Chris Voss. Many negotiating classes use his material and he's been interviewed often about his approach.”
Sharpen Your Real Estate Skills
No matter where you are in your real estate career, there’s always more to learn. Aceable offers a variety of professional development courses to help you with everything from mastering listing appointments to farming neighborhoods or creating a million-dollar real estate team. If you want to make 2023 your best year ever, you won’t want to miss out. Explore our course library today!
Updated 3/3/23