As a Realtor, one of the strongest skills you must possess is the ability to negotiate successfully. REALTOR® Magazine recently published an article about how to hone your negotiating skills and add confidence to your presentation.

Negotiating can be difficult for several reasons. Firstly, realtors act as third-party negotiators to buyers and sellers that may be jaded toward negotiation. Many are inexperienced at negotiating and, therefore, fearful of it. Realtors are rarely trained in negotiating, meaning it is something learned through practice. The scale at which realtors are negotiating can also be intimidating as it is typically the buyers and sellers largest or most important asset or investment. Finally, The experience of buying or selling a house can make people insecure to begin with.

Prepare your buyer/seller

Tell your client exactly what to expect. Explain all the steps that will be completed during the process. Provide copies of any paperwork and any offers. Make sure to be thorough in what is going to be negotiated, as it is not always just the price. Once your client has all  the tools, go through a trial run with them so they know exactly what to expect once the other party is in the room.

Educate your client on worst-case scenarios

It’s always good to be positive and you should certainly discuss the best-case scenario with your client, but don’t forget to cover the opposite end of the spectrum as well. The majority of times, the client will fall somewhere in the middle, but they should always be prepared for the outcome. By doing this, you are creating expectations of how the process will play out, which provides peace of mind for your client.

The other benefit of prepping the client ahead of time is that you are gaining some control of the situation. By providing information and making things less stressful on the client, you are also alleviating some of the natural urge they have to take over the reigns. People are less tense and more cooperative when they know what they are getting into.

Research and plan

Do your homework. The more information you have, the more power you have. You should have information form your client, the other agent, the other party, past multiple listing records and tax records.

In addition to “official” records, you’ll also want to get general information. Know who is moving. Why and where they are moving. Be familiar with timelines. Know if the seller has had any offers and if the buyer has seen other properties. Know how long the property has been on the market for.

While it is important to gather information, you should also be cautious about how much information you and your client are disseminating. Certain information should be kept confidential for ethical and legal purposes and also so that the client is not put at a negotiating disadvantage.

Have integrity

It sounds simple enough but courteous and appropriate behavior goes a long way with people. Be on time. Follow through on promises. Speak in a straightforward manner. These small steps can give you additional influence in a negotiation setting.

Be objective

Do not share inappropriate information with a party. Conversation should not extend far past “they are interested in the property/selling.” Similarly, be careful about bringing together the buyer and the seller during inappropriate times. Without someone acting as a neutral third party, there can be misinterpretations, which leads to trouble

Work smarter, not harder

Write an offer that makes sense for your client as well as the other party. By writing an offer that you believe will be accepted, you can avoid too much back and forth between the buyer and the seller. Do everything you can to make the deal come together and prepare your client for this beforehand.

Keeping these simple strategies in the back of your mind can ease negotiations and ensure that both you and your client are satisfied from beginning to end of the negotiation process.

Is negotiating your strong point? What other tips have you found helpful when negotiating between buyers and sellers?

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