The gist of every real estate transaction is the same: the seller looks to lock in the highest price possible, while the buyer looks for the greatest value (lowest possible price). The best real estate agents have mastered the skill of negotiation to consistently win the deals that make their clients happiest.
In this article, we discuss four tried-and-true negotiation strategies that real estate agents can apply successfully.
1) Prequalify your clients
Prequalifying your clients can be the difference between securing a sale and wasting time. Simply put, if you want to make the process faster and crack deals, ensure that the buyer has the ability to pay.
It is important to run the potential buyers through verification to see whether or not they can afford the property. One way to do this is to run credit checks before showing any property.
2) Negotiate in person
In the digital age, negotiating via email or phone are common, but nothing beats a face-to-face discussion. It can lead to better and far more lucrative deals.
To put things in perspective, meeting in person allows you to deduce the buyer’s intention. The body language and facial expressions can reflect the true level of interest they have in the property.
Furthermore, in-person interactions on a frequent basis can help form a personal connection. This can make it easy and quite faster to close sales.
3) Provide awareness and value
The most competent real estate agents do everything, but they will not impose on or preach their choices to their client. An expert real estate agent, will always focus on educating and simplifying the entire process for clients and potential buyers.
Your primary focus should be to make clients feel like it matters to you that they make an informed decision. Make sure to leave an impression that makes both the buyer and seller feel compelled and comfortable enough to come back to you for advice.
4) Seal it with an escalation clause
If you are a real estate agent representing the buyer, you would never want to put yourself into the bidding game with other buyers. And, if you are an agent representing the seller’s side, you would never want to commit to the highest bid if you see that there is a chance someone could pay a higher price.
Here, through an escalation clause, you can lock-in the offer from the buyer’s end while at the same time, leave a margin for the seller to win a higher quote of the price.
As an agent, what are some of your top negotiation strategies?
At JPAR Rocket City, we work together to mentor and build each other's businesses through our personal experiences. If you'd like to learn how mentoring new agents can be an additional source of income, reach out to our Managing Broker/Owner, Valerie Cortez, at (256) 692-9795 today.