With real estate deals come negotiations, and in order to get the best deal for your client, you must be equipped with powerful negotiation skills and strategies. Often, there will be some disagreements between the homebuyer and seller. These may pertain to the price, the terms of the sale, or many of the other factors that come into play with such a large investment. Either way, you will most likely have to put your negotiation tips into play. In order to ensure a fast and easy closing and an optimal experience for your clients, avoid making these top four mistakes when negotiating real estate.
Revealing Too Much Information to the Seller’s Agent
As a real estate agent, you probably already know that revealing too much too soon is one of the biggest negotiation mistakes one can make. However, your client may not. Buyers don’t always understand that some information should not be revealed to the seller’s agent before they make an offer, and more importantly, that keeping some information between the two of you can be incredibly beneficial. Instruct your buyers to refrain from talking too much in the presence of the selling agent, especially if the conversation pertains to financial information or the sale in general.
Making an Insultingly Low Offer
This can be one of the harder negotiation tips to follow because as a real estate agent, you don’t necessarily have control over the amount your clients want to offer. However, you can use your real estate experience and skills to inform them of the damage a low offer can do. Whether putting in an initial offer or responding to a counter-offer, it’s imperative to never insult the seller, as this could result in them refusing to negotiate any further. As a rule of thumb, make sure that all offers are informed and reasonable to ensure that both parties are respected.
Asking For Too Much Up Front
Some of the most common negotiating mistakes aren’t always at the fault of the real estate agent. However, it is your job to be equipped with the knowledge and negotiating skills to be able to ensure that your clients only move forward with appropriate actions. Some clients want to get a lot with their offer. Consider both parties’ needs and desires to ensure no boundaries are crossed during the negotiating process. If the client wants to make a low offer but also wants the house to close two months later than the sellers want, you could have a problem.
Giving Your Best Offer Up Front
You never want your clients to give their best offer from the get-go. Not only is this one of the most important negotiating tips for real estate agents, but it’s also a well-known sales tactic used across several different industries. Why? Because most people list higher expecting to negotiate with potential buyers. One of the best negotiating tips you will ever receive is to never put everything on the table right away. When it comes to sales, start in the middle, and reasonably work your way through the negotiation process to ensure the transaction goes smoothly. The exception to this rule is when the seller already has multiple offers and the client really wants the house.
By knowing these top mistakes, you can allow yourself to be wary of committing them yourself. Avoid these four situations to ensure you perform at your best for both you and your client in all negotiations.