Many professions require a certain amount of negotiating skills in order to get a job done.  However, each industry requires different kinds of negotiating skills, and each situation needs it's own finesse to seal the deal.

I have a buyer client who used to be in car sales, and very much prides himself on his business acumen and negotiating skills.  This buyer has written several offers, and recently lost out on one home he and his family very much liked.  This home was an REO property with 15+ offers in on the property, most offers over list price.  We recently saw another property he liked, and that's when the tutorial began.  "You know, you really have to be tough with them. Tell them you have a really strong buyer."  He even once told me to "use [my] sex appeal."  Granted, he was joking, but still!

I imagine buyers think it's like the movies where we're in some sort of conference room with dark leather chairs and rich wood accents, and we're pounding our fists down on the table, playing all sort of games with the other side.  While that might fly in other industries, I don't call that negotiation!!

To me, the art of negotiation lies in bringing a deal together, which I think serves the clients' needs, as well as maintains my reputation in the real estate world.  I don't need to pound my chest to show what a great wheeler and dealer I am, and it's part of my job to educate my clients as such.  Negotiating means cooperating and working toward getting the deal closed.  You can't do that if you're constantly out to win a pissing contest.  A deal is already hard enough to get closed these days without having to deal with unnecessary egos.  And when one builds their reputation on being a hard-working agent who is easy to work with --particularly if the deal is not easy -- when the other agent has the choice, you're going to be at the top of the list.  That's RELATIONSHIP and REPUTATION building.

When I had a client who was writing an offer on a short sale that was in multiple offers, my client's offer got picked -- not because he wrote the highest offer, but because of my relationship with the other agent.  I had worked with her before, it was a pleasant experience, even if the deal wasn't, and she could trust that I would keep her updated on what my buyer was doing, and if he could wait until the short sale was approved.  The deal closed 4 months later, but without that trust, communication, and relationship there, the deal could've gone awry.

Like I said, each industry requires different skills and I would never try to negotiate a deal in a different industry without knowing the industry standards and things to look out for.  That's why we hire specialists - industry professionals who are active in that field and know what's going on.

Explaining again to my client that in the area and price point he is looking in, REO agents are notoriously difficult to get on the phone, inquiries aren't generally responded to, multiple offers abound, that the best option for him is to submit his highest and best offer on the property -- he finally relented.

Hey, it's a people business, all we can do is educate our clients, right?

Happy Buying and Selling!

Caroline Choi Realtor

Caroline Sells The City LA

www.CarolineSellsTheCity.com