Special offer

10 ways you can be a better negotiator

By
Real Estate Agent with Edina Realty

 I just finished up a transaction with what I consider to be an exemplary real estate agent. Negotiations were tough and we went back and forth for a few days.  But his model behavior was consistent all the way through.  What a pleasure.

Your behavior has an impact on how well you are able to negotiate on behalf of your client.  If you offend the other party during negotiations, how likely are they to be reasonable? If you're clients get heated during negotiations you must remain the voice of reason, and NOT repeat things they said to the other agent. Be the sounding board for your clients. Let them express anger, or fear and then come up with a strategy to address those feelings.

Ten Ways You Can Be a Better Negotiator

  1. Communicate. Respond to the other agent in a timely manner.  If you don't have new information, make a phone call anyways.  Knowing you're on the ball goes a long ways!
  2. Be available.  During negotiations make sure you're available. Keep your cell phone on, and watch for a call from the other agent. If you're going to be unavailable for a time, communicate that to the other agent.
  3. Listen. We spend a lot of time listening to our clients, listen to the other REALTOR for clues on what THEIR client wants. 
  4. Be respectful. Don't put the other agent on the defensive. Don't put down the house, the clients or the house.
  5. Be professional. Don't have your kids answer the phone, or be in a bar when you answer.
  6. Ask questions about what is important to the other agent's clients. If you can understand their goals, you may be better to negotiate what's important to your clients.
  7. Set expectations. If there is something that you client won't negotiate, or there is a city or lender requirement, state it up front.  Don't surprise the agent you're negotiating with.
  8. Meet timelines. If you said you would have the inspection done in 2 days. Do it.
  9. Follow through.  Do what you say you will do.
  10. Fill that paperwork out correctly. 'nough said. 
Bonnie Erickson
Tangletown Realty - Saint Paul, MN

Lisa, this is such a breath of fresh air to hear.  Time after time I have been insulted by the other agent or submitted to tirades of how they were the top producer or been in the business for xx years or whatever, and had to bite my tongue for the sake of my client.  It is such a breath of fresh air to work with a serious professional on the other side of the table.  Stepping back and not getting emotionally involved is true representation for our clients.  Being the sounding board for their emotions is also part of our job.  Keeping that to ourselves is important to keeping the process going.  I also like the suggestions to be honest.  The words, "This item is a deal breaker" are definitely alerts to the other side, even if it is the dining room chandelier!

Paperwork!  When I was an EBA I had no clue how awful many purchase agreements were.  Absolutely no clue whatsoever!  Lines left blank.  Amounts scribbled so they're illegible.  Closing dates left out.  I now understand why listing agents always complimented my offers.  I had no baseline to compare before.

Nov 07, 2006 03:10 AM
Lisa Dunn
Edina Realty - Minneapolis, MN
www.TwinCitySeller.com
Bonnie- Thank you for the thoughtful comments!   I've started to ask agents "Do you want me to repeat that to my client?"
Nov 07, 2006 03:28 AM
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time
Good stuff Lisa, I always negotiate with a smile on my face and utmost respect for the other Realtor. It is also so important for Realtors to remember that the the negotiations are between the seller and the buyer, not us! Don't assume what the party you are representing will say or how they will respond to an offer. Always present to terms and let them decide. It's their deal.
Nov 07, 2006 09:27 AM
Bonnie Erickson
Tangletown Realty - Saint Paul, MN

Broker Bryant, I love to tell the agent, "Weeelllll, I don't know if my client will go for that, but I'll check and see."  The long drawn out, wweeellll, prepares them for flat out rejection but also softens the ability to find a middle ground if a counter is needed.  I never, ever, ever speak for my client's decision, never!  I might know they will agree because that's what they said yesterday, but how do I know they didn't change their mind overnight?  Or after talking to parents or friends?

Lisa, I'm going to have to ask the irate agent your question the next time it happens!

Nov 07, 2006 06:41 PM