I have another blogging project that focuses on negotiations. Everyone negotiates! Whether it is a parent with their children or a couple deciding were to go out to dinner, everyone is involved in negotiations on a daily basis. And yet most Americans have a negative connotation of negotiation. It is pride really. If we have enough money we wouldn’t have to negotiate. Or we think that negotiation is more like pulling to wool over some ones eyes than coming to mutually beneficial agreement.

Well we want to change that. We believe that anyone can be a good negotiator, it just takes a little practice and planning. That is where The Negotiation Board comes in. It is a forum and a Blog. The Forum is a venue for anyone to share their negotiating stories and ask questions on how to handle certain situations. The blog is for tactics and strategy discussion. Our hope is to create a community that is supportive of each others desire to improve their negotiating skills. A community dedicated to helping each other save money and reach mutual beneficial agreements with others in our daily lives.

We are just getting started but already have some great posts about getting out of a Verizon wireless contract and even one about negotiating with Comcast. We have a significant amount of tactics and skills information and training already available.

We would love to have a few guest posts from Realtors, who are expert negotiators, sharing a few of their better real estate negotiation stories. If you are an agent and would be interested in writing a guest post or two, check us out over at The Negotiation Board and let us know.

Do you use magnets? We have all heard stories about agents landing listings through mailing recipe cards, newsletters, and of course by blogging about a neighborhood. Some agents pass out pumpkins around Halloween or seed packets in the spring. I have had clients call off the postcard that was mailed to an area with comparable sales. All of these are ways real estate agents prospect for cold leads. Some effective, some not.

Judging by the quantity of magnets and stickies on most peoples refrigerators I was wondering how successful promotional magnets are? We all probably have at least a few on our fridge from the local pizza delivery guys, but what about real estate services? They are pretty cheap and seem to stick around.

Of course nothing out does a good referral, but do you use these promotional magnets to stay at the top of your spheres mind? Do you mail them out to a geographic area? How successful have they been? I would think that magnets with football schedule printed on them would stick around and be used for at least a season. You might even get a call asking for next years season if they get used to having one.

What have your experiences been in using refrigerator magnets?

After my last post here is a comment I received from a Realtor.

I like to think that it's less about the area that I know but the fact that I know negotiation and contracts very well.  On top of it, my clients are usually tech savvy and want someone that communicates in the way that they do.  Having come from a technology background I am able to do just that.  The majority of my business is in King County, but I also work in north Pierce County and south Snohomish.

This is EXACTLY what I have been talking about, the average real estate agent specializes in making the commission not serving their clients.  Every real estate agent had better know the contracts and how to negotiate, that is a given.  But to say that you don't need to know the area to best serve your clients is false.

I often hear that the value of a home (or any asset for that matter) is whatever a buyer is willing to pay for it.  Real Estate Agents often use this to rationalize not knowing the area they are working in.

"If my buyers are willing to pay X for this property then that is what it is worth."  NO, that is how the listing agent is supposed to think, Not the agent representing the buyer.  A Salesperson has this definition of value, not an agent.  And agent is someone who represents the interests of their principle, not a salesperson.

Are appraisers supposed to set the value of a home at whatever price an individual will pay for it?  No, just because someone is willing to pay 500k for a 200k home doesn't mean that appraiser will value the home at 500k.  Ok, sure there are appraisers who are just as unscrupulous as some realtors and lenders, but let's stick to what they are supposed to do.  The value is what the home will sell for in a specific market not to a specific individual.

How can a real estate agent who hasn't walked the last 20 similar homes that have sold recently know what the value is?  They can't!  Sure they can come up with lots of great rational why they can: look at the MLS history, tax assessed value ratio, neighborhood analysis, Zillow, experience, technology, and of course the best "It is worth whatever their buyer is willing to pay."

Agents like this are a part(just a part) of the reason we are in the financial trouble we are in right now.  They don't represent their clients, they just sell them what ever they can and for whatever price they will pay.

I refer people to agents who specialize in an area.  Sure they may work with people outside of that area, but that is the exception not the norm.  Buyers and Sellers need agents who know the local market and have walked the homes that have sold.  It is the only way they can really understand the value of a home.

I know and work with local agents who specialize in an area and act like an agent is supposed to, they represent their principle YOU!  If you are looking to buy or sell a home in Western Washington, let me help you find the right agent for you and the area you are looking in.  Guide to Seattle Real Estate.

Ok so just how is this going to work?

Part of the reason I am phasing out of full time Real Estate is that I don't want to work with unscrupulous people. No not all agents and lenders are unscrupulous! But, unfortunately,I think there are more that are than not.

Just look at what attracts most people into the real estate industry. $$$$$$$$ Making money fast. People are lured into Real Estate thinking that they are going to make it rich. Brokers tell prospects about how much their top performers make to get them to sign up. Then over 90% of agents drop out in the first 2 years. It isn't all that easy to make a sustainable income. Being a great agent takes a lot of work, it definitely isn't a walk in the park.

I will admit that is what attracted me to the business. I thought that a flexible schedule and a decent income would allow my wife to stay home when we had kids and I could spend more time at home with them. I want to be really involved with my family. We had Callista a few months ago. She is a beautiful gift from God. Even her cry's and screams are cute. Real Estate Riches are made working long hours, nights and weekends. Not for the family man wanting to spend more time at home.

I have been double dipping for awhile now working for a marketing company in Auburn, more of a 9 to 5 gig. Working B2B is great, much less likely to be stuck working with those unscrupulous fellows. I want to keep what I like from the Real Estate Industry. I am going to reduce my night and weekend work and just refer clients to other great agents. One thing I have learned in the business is what smoke smells like. No matter where they try to blow it. This way I can send clients to agents who actually specialize in what they are looking for.

I've represented buyers, sellers, houses, townhouses, condos, Snohomish/King/Pierce counties, wherever there was a commission check I was. Sure I did my absolute best for every client that I had. But specialization has its benefits. There was no way I could've really known the inventory in Tacoma and Bellevue, only an agent that specialized there could. Someone who actually went on tour every week and saw every home that came on the market. Most agents are just like I was, they specialize in making the commission check. That is what brokers teach their agents to do. Make them money!

So instead of spending my time knocking on doors and sending out massive amounts of postcards, I am going to get to know great agents. This way I don't have to work with the unscrupulous ones, I can just say no. Then I can review these agents here on this Seattle Real Estate blog. I can talk about what they do great and only write about agents that I feel actually have their clients best interests in mind. No Smoke Allowed!

When I am approached by a person who is looking to find an agent I can then send them to the agent who will best serve them, not just someone chasing the commission check. Sure I wont make as much as a full time agent, but this is only a part time gig. I can focus my time on my family and working at my marketing gig. I can take what I love about real estate and help others at the same time, the best of both worlds.

Wish me luck as I figure out how all this is going to work.

I love sales!  No not the Sleazy Used Car type. Sales, helping clients find what they are looking for. That is what a real estate salesman does. What are your needs and how can my experience and training help you? I read and attend tons of Sales Training, some good some not.

I just came across this great post from Gavin Ingham.  He is a Sales Trainer whose blog I just found about a week ago. While his article is about Selling in a Recession, he gives a great example of what many real estate agents are doing in this slower market.

One of my friends went down to our local real estate agent this week to put his house on the market. He was told that maybe he should wait as he might not get the price he wants right now. They told him the market was quiet and that might not be able to sell the house at all. Better to wait for the market to pick up. I walked past their offices later on that day. They were all sitting, chatting and drinking coffee. They were probably moaning about what a bad year it's going to be. If I's have been in that office, I'd have taken my mates house on and I'd have been on the phone drumming up some viewings. 50 calls, 100, calls, 500 calls... Whatever it takes. I'd have found someone.

That is the truth if I ever heard it.  What is your real estate agent willing to do for you?  While yes we all like to build our business on referrals, do we sell homes through referrals? NO! Homes are sold through effective marketing and great follow-up on leads and responses to that marketing. Calling back everyone who calls on the sign or the 20+ web markets the home is advertised on.  With a little effort we can collect the leads that are interested in a home.

Yes we can network with other agents, but that is just part of the game. We have to make the calls, follow-up, beat the pavement, find the buyers.  It's our Job!  If someone wants to Sell their home, Sell it.  Now I am not saying that as agents we can sell any listing. The home must be priced right and in the right condition.  If a home meets these conditions it will sell in ANY market, with great follow-up and diligence of the agent.

Even an under-priced steal of a deal won't sell if the agent spends all their time talking with other agents in the break room at the office.  I have never sold a home to another agent and doubt I ever will.  That's why I try to spend my time away from the office. Whether I am holding Mid-Week Opens or Previewing or in my home office Smiling and Dialing, I am working for my clients.

What are you willing to do for your clients?  If your not an agent, What do you expect your agent to do for you?

Stay Tuned for More.

The Guide To Seattle Real Estate.

After reading a great post by Charles over at Portland Real Estate Blog,  a little could be added to our discussion about real estate negotiations. Is it always a Zero Sum Game?

One of the first principles learned when studying negotiation tactics, is to make sure to leave your opponent feeling like they got a good deal.  This can be tough especially when using terms like opponent and zero sum. Homeowners hire agents to play this game tough and get the best possible price for their home. This is zero sum, what one side wins the other loses.

But while our goal as agents is to get the best possible deal for our clients, we must remember that there are people on the other side of the transaction.  Now we're not talking about being easy on the other side. But, I have come very close to losing transactions because the agent on the other side of the deal was demanding the world, rudely. My clients felt insulted by the underlying tone that was coming across during the negotiations process. Their first reaction was to just walk away.

We had a difficult conversation about what their true goals were and how, once they owned the home they would never have to "deal" with the other agent or seller again.  Their response was to continue with the process, but fight tooth an nail for everything they could, even at risk of throwing the deal. Game On! We got what they wanted, but came close to losing the deal.

Risk vs Reward, this is a personal level that we all have to choose. I have found that by personally presenting offers or adding personalized letters; this paints a human face on the offer.  It can reduce the "cut-throat" edge on the other side. Always give the impression that the other side "got the best" of the deal.  This way they feel satisfied and are less likely to come back for more.

While I was in college, being a real estate agent was the last career on my mind. I knew that I was headed into business, preferably one that I could own myself. I have always had the entrepreneurial spirit. I wanted to be of service to others. In fact I have a well defined life purpose: To be of maximum service to God and the people around me.

I love fitness! Being an avid rock climber and mountaineer, physical exercise is a large part of my life. So, when I was in school I thought that I should become a Physical Therapist. I could own my own practice, be of service to others, and teach others how to use exercise to heal from injury. Sounds perfect doesn't it?

Nope, not for me. I loved the Biology, Chemistry, Anatomy, in addition to my regular Business degree classes. But part of the path was to volunteer or work for other PTs. I acquired about 800 hours of paid/volunteer time. They have this requirement for a reason. If you are going to get your Doctor in PT then you had better be sure you want to do it.

The PTs in private practice that I worked with were total slaves to their business. Neither had happy or existent home lives. No, I wanted a career where I could help, provide, AND be present for my family.

My wife was working as the office manager for a small boutique real estate company and gave me a little push towards the industry. I did a little research and found that Real Estate had pretty much all the qualities that I was looking for in a career. Being of service to others, the ability to provide, and with effective time management skills the potential to be present for my family.

Once I got into real estate I learned that the reasons I choose the industry weren't the same reasons everyone else did. While many agents have a good sense of right and wrong and work from ethical principles; some don't. I soon found that the way I look at my business is quite different than the way others look at theirs.

While Sales is the name of the game, I work with people, not houses. There is a big difference. Client centered is how some describe it. Over at Inman they just posted this great article on how, by serving your clients well even if not earning a commission every time, can lead to a successful business. This is the model that I aspire to create.

It is a learning process. Not a get rich quick path, but a very rewarding one. Stay tuned for more as we travel this road together.

Moving into a town home in Seattle can be challenging. Tight corners and stairwells coupled with a three or four story layout. As the density of our city increases, the number of town homes will inevitably increase, for several reasons to be discussed later. My wife and I live in a 1200sqft town home in the Alaska Junction neighborhood in West Seattle. It is by far one of the coolest areas in Seattle. We walk to everything. Some of the cities best restaurants and cafe's are within just a couple of blocks.

However getting furniture into our home was a challenge and is for most town home owners. We bought a 9ft long sofa, it is soft and fuffy, but it wont fit through our stair well. For about a year we converted our first floor bedroom into a "TV" room and avoided moving it into our "living" room on the second floor. Recently we are expecting our first child and need to move our "office" from a third floor bedroom down to the first floor. How to get the huge sofa up stairs to make room for the office?

Being an avid rock climber and mountaineer, ropes and rigging are my thing. Check out this great system to get a couch to the middle floor in a typical West Seattle town home. A little hoist and pull using a three to one pulley system and after removing the second story balcony.

We even have a little video of the final stages.

Figuratively, of course. When receiving an offer that is too low, and they all are these days, it is important to use everything you can to get an edge on your competition. Negotiation tactics are an edge that all top producing agents have. This post is the second in a series on Negotiation tactics and real estate.

When an initial offer comes in the correct reaction is to "flinch." You want the bearer of the offer to feel like they just dropped a brick on your foot. "Ouch!" Then wait. Don't say anything. Nothing. Silence, is the next move. Almost like you are waiting for an apology from the brick dropper. Wait until they talk next, no matter how long it takes. I have waited so long that people have asked if I was still on the phone, like it was a dropped call.

When I am shopping in the grocery store and I accidentally bump someone with my cart, my first reaction is to apologize. I have actually had agents, after dropping a brick on my foot, apologize for their offer. What?! Who is selling who? While agents often "feel" each other out over the phone to gauge where and how far they can push a situation, they should never apologize. Making an offer is not like bumping into someone in a grocery store. Apologizing is admitting that the offer is too low or high as it may be.

Negotiating real estate contracts are often a "quid pro quo " game. I'll give you this if you give me that. The flinch offers an opportunity to get a little for nothing. I have even heard of agents offering to increase their asking price right over the phone when faced with the flinch and a nice long pause. This is not the norm and many good agents know and understand these tactics. Does yours? Ask your agent what their response is going to be to this situation, before you hire them.

When entering into negotiations you had better know your Set Point. Without knowing your Set Point your just shooting in the dark aimlessly with no real stragety. A good agent can smell this a mile away and counter effectively. I will talk more about what and how to determine your Set Point tomorrow, stay tuned.

The market is changing, but I mean that the confidence bottom has dropped out of some real estate agents. I have always been a student of the human condition. How people react when their ego is hurt, what they do when they are in a position of power, or do they go on the defensive when threatened.

A real estate agent is supposed to be your protection from these absolutely normal reactions to situations, especially when the bottom drops out of the real estate market. Barrier to emotion, is one of the benefits to using a real estate agent to negotiate. Any agent really, whether it is a sports agent or an actors agent, is a negotiating tool. When the seller, or buyer as it may be, comes back with an outlandish response, your agent is there to respond using wise tactics.

All too often agents either just say, "Thank you for the offer I'll see what I can do" or they over react giving away their clients real position. Either way hurts their client, not good business skills. If a client is going to pay for full commission service, they should get what they pay for. A great real estate salesperson, who understands the selling process.

I am going to talk more about the negotiation process in the next few days so stay tuned for more.