The housing market is about to heat up across the country as warm temperatures arrive, which means more business for real estate agents. One of the most important aspects of their job is to negotiate a sale. Any mistake made during this process can put a transaction in jeopardy, which could lead to a lawsuit if it costs a client money. For this reason, a comprehensive Errors & Omissions insurance policy is important, as well as knowing some of the most common negotiating missteps, such as:
• Failing to understand what the seller wants—Real estate agents should have plenty of experience negotiating with sellers, so it will be their job to make sure they have a firm understanding of the seller’s expectations and what they specifically want as it pertains to all aspects of the sale of their property. Not understanding the seller could lead to troubles, according to U.S. News & World Report.
“You want to make best use of the seller’s fears,” says Ed Brodow, a negotiation expert. “So the question is: What are the pressures on the seller of this house?”
• Going into a negotiation trying to “win”—While people will want to get a good price on a home, it is important that agents don’t try to “win” the negotiation. This could create issues, because sellers may not want to part with the property that allows an agent to win the negotiation, which could hold up or cancel transactions. If this happens, clients may be unhappy and blame their agent for the problems – potentially resulting in a lawsuit.
• Failing to complete the necessary research—One of the biggest mistakes an agent can make is going into a negotiation blind. There is information that is needed in order for an agreement to be successful—and without it, agents could get a bad deal or none at all, which won’t make clients happy. Trying to cut corners often leads to trouble, so agents need to be sure to do the extra work and research.
For coverage to protect yourself as a real estate agent, broker or firm against Errors and Omissions claims, visit Norman-Spencer.com/TopTier.
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