In this article, I will share the ten best tips to become a real estate negotiation expert in your local market. As you know, you must create a common ground in every deal. So both parties can agree and win. To build that common ground, you need to learn some special negotiation ticks only professional real estate agent uses.
Look, the price of a home is never a problem for homeowners. They want a peaceful life without all those daily problems. Don’t focus on pricing too often. Know pricing negotiation is not a big deal. The big deal is to convince the buyer that this house is the best for them.
Not just that, it is also important you negotiate with other real estate agents, which requires much-advanced training. But the formula is the same get them in common ground and create a win-win situation.
Ten Tips to Become a Real Estate Negotiation Expert
When listing or purchasing a home, negotiation is always necessary. You may be trying to get a high offer from a buyer or a convincing seller to reduce the asking price or talking about amenities on the property. Negotiation is always in need. So to become successful in those goals, you need to become a real estate negotiation expert and deal with them professionally.
Research says only half of all homeowners negotiate with their agents before listing, and most negotiation starts with not the price but the problem they are currently facing. Here are the ten real estate negotiation expert tips that you can use.
Table of Contents
1. Sell Yourself First
If you want to close that deal soon, you have to make friends with them. Selling yourself means gaining their trust. You must show them why you are the best person they can have. Your company does not matter to them. If you can not make them feel like a friend while talking, be ready to lose the lead.
Buying a house is a lifetime decision, and they will never trust an unknown person to deal with it. So use your communication skills, and make friends with them at the very first meeting. Don’t sell but become a friend.
2. Never Reveal the Price right Away
Before you show homes to the clients, you must know their financial capabilities and what they can afford. If you show them a $500,000 house and they can only afford a $200,000 house, you will certainly lose that client.
First, understand their exact needs and what kind of homes they are looking for. Then show it to them and if they ask, give them a hint about the price so they can know what range it can cost, but not reveal the exact price as the price will change depending on amenities and other services you provide with it.
3. Always Be an Honest Person
No matter how well-established your firm is in the market, if you don’t show honesty, no one will buy from you. Don’t misguide them, just show them data and tell them why this property is best and why not. People also like listening to negative things about the house, like the pros and cons. If you don’t include cons, they will think you are misguiding them.
Be an honest person and tell them as you are helping you find choose a house and let the decision on them. That way, they will be happy and will start to trust you. They will think you will do your best to find the house in the neighborhood.
4. Never Give them Many Options
If you present many homes in front of the client, they will feel lost as every house has unique pros and cons. As a thumb rule, show them a total of three homes. One is about $160,000 that they will not even consider, a $220,000 house that is best subtle for them, and $330,000 that is out of their reach.
It means you are telling them what house to buy but letting them choose the options. This strategy is followed by many real estate negotiation experts who know their clients well. That is why dont let them choose the form of your inventory. Present three houses in front of them in this order, and they will select the 2nd option.
5. Ask Quality Questions
Sometimes people don’t know what they really want. By asking questions, you can understand their needs and show them the house they will like the most. Here are some top questions you should ask your clients.
- What kind of homes are you looking for?
- What is your preferred neighborhood?
- What amenities suit you best?
- Do you want any outdoor space?
- How long are you planning to live there?
The list can go on as every buyer has their own taste and needs. You can turn over the questions and ask them in a way that produces a response. It depends on your creativity, but you must ask. These questions will help you and them to identify their needs.
6. Use a Well Written Script
If you are a new real estate agent using a script will help you a lot. What to tell, when, what tick to use, what might be their responses, and how to convince them. Everything will be written in that script with a step-by-step process.
If you build a proper script, you will have confidence when discussing, and the chances are you will never mess up and make it look awkward in front of the client. Create a script, and you will know what exactly to tell them.
7. Use Stories and Jokes
You can use a story when discussing with them the house. Stories mixed with jokes will touch their hearts. You can tell them a short story related to their context to make them calm and enthusiastic.
That way they will spend more time with you and you will have the lead. They will start to trust you as their primary agent who will find them their dream house.
8. Look for NOs rather than YES
You might be thinking, what is this? Why should I ever look for NOs? Because all buyers first say no to a deal and later say yes. It’s a process of NO, NO, and then YES. Don’t expert yes, expect no.
Explain to them everything you have, why this is the best deal, and let them think a bit. If they like, they will look at it. If not, you have more options to show them. It’s psychological, don’t be afraid of NOs in this business.
9. Use the FOMO Technique
Fear or missing out (FOMO) is an influence trick agents use to tell their clients that the deal might not be available in a week. If you like it, please tell me. So, I can keep it aside only for you.
By using FOMO or expiration date you are playing a mind trick and influencing them by the Law of Scarcity. It is the best risk for a real estate negotiation expert. But, use them honestly. What is gone is gone. Maintain your honesty, and this influence will work for you.
10. Trust The Follow-Up
You must trust the follow-up process. When a buyer is not ready to take the deal, you must put that client on your follow-up list using CRM software. Whenever you get a chance to offer something, you use that to follow up with the.
Plus, engaging with their social media post will also be helpful as they will remember you. There are many ways you can follow up with a client. But the main thing is this, don’t let them forget who you are.
So these are the best tips for a real estate negotiation expert who can deal with any client and situation. The idea is simple, make them like you, create a common ground and offer a win-win deal. That is the sole idea behind real estate negotiation. I hope the article has helped you. Thanks for reading. See you soon.