In an industry where commissions are being challenged and discounted daily, negotiation skills can be the difference between receiving a four or six percent commission. That means, in a $500,000 transaction, you could be missing out on an additional $10,000. According to a recent NAR Profile of Buyers and Sellers, 89 percent of people who were polled considered negotiation skills to be very important in their real estate agent. To help you build your negotiation skills, here are five negotiation scripts from Alexis Bolin that can help you close the deal.
Ask the other agent questions about their party’s situation, issues and participants. You can avoid future problems further into negotiations by knowing ahead of time if the other party needs to close by a certain date or if they have specific things that “have to” happen to make the deal work. Once you have this information, you can set reasonable goals for what you hope to accomplish during negotiations.
Never enter a negotiation unprepared. Learn everything you can about the buyer, seller, and agent motivations, so you can negotiate from a position of strength. Before meeting with the other agent, research both them and their party on Google and Facebook and look at the agent’s past sales in the MLS. Strengthen your position even more with the latest market information, and you’ll be well on your way to defending your party’s interests in any situation. If you find yourself in a situation where your sellers receive a low offer, you’ll be better prepared to negotiate with the buyer’s agent.
When your sellers receive an offer, as you know, it’s not always the figure they were expecting. The way you introduce the offer to your client can make a big difference in the way they react. A good attitude and calm tone can make a potentially low offer seem better to your sellers.
Using what you know about the other party’s situation and desires, anticipate their comments and concerns and be prepared with responses that create a win-win situation for everyone. Having your responses prepared ahead of time will help you remain “calm, pleasant, and unflappable.” Use your past experience to show your sellers that a low offer may still be worth accepting.
Bolin reminds agents that “more deals are lost because of the two agents involved in the transaction than are ever lost because the buyer and seller could not get together.” Make sure you’re not the one causing an issue in a deal. If necessary, find ways to agree with the other party and never respond with an offer that is unlikely to be accepted. Use your knowledge of the market and both parties’ objectives to reach an agreement. Also, keep in mind that not every deal can be closed. It’s just as important to know when to stop negotiating.
For more information on the five steps to successful negotiation, visit Secrets of Top Selling Agents and watch the full webinar, Negotiating Contract to Close: Tactics & Tips to Succeed! Here you will learn about six different negotiation tactics, four great scripts, as well as more about the five steps to successful negotiation.