I have been involved in literally thousands of negotiations over the years. Over that time, I have learned that there are five key factors that play a very large role in determining the success of a negotiation.
- If at all possible, the buyer and seller should never negotiate directly. Nothing good can come from this! It’s all downside with little potential upside;
- The less surprises the better. Layout all the facts as early as possible, so that all parties are clear on their conditions;
- Each party should be able to back up their position. There are no requests “just because.” There must be logic behind all requests. Otherwise it’s unreasonable;
- Transparency is your best tactic. Nothing can muck up a deal more—or cause distrust—than one party changing their tune after an agreement has been reached; and,
- Don’t let egos get in the way. Egos are deal killers! When you bring your ego to the table, you’re negotiating against yourself, and hurting your client’s best interests.
Do you agree with the five key factors above? If so, you should always ensure you stick to your guns and follow them. If you don’t, the negotiation will be harder, and the chances of the deal succeeding will decrease.
Furthermore, it is also important to empower your agents with the knowledge of these five key factors. All too often I encounter Realtors that don’t understand the basics of negotiation. They’re left negotiating away their commission—or worse—not getting their client the best deal possible.
How much negotiation training do you give your agents? How much have you had?
This is an important topic I don’t believe gets enough attention. Visit our blog to learn more about real estate business practices.