But whether you're representing high-end properties, investing in commercial real estate, or looking to advance your career, you need to know how to negotiate effectively.
Let’s take a look at some of the most effective real estate uk b2b email database strategies, especially for those trying to buy an investment property or sell a luxury property.
1. Know your product
Before you enter into negotiations, you should know everything about the property and the area. Let’s say the agent says, “The expected value for this property is much higher.” Is that true?
If you don’t look for your own information, you won’t know. The more prepared you are for a negotiation, the more ammunition you’ll have on your side – and the easier it will be to know if you’re getting a good deal.
Remember, in many areas, real estate transactions move very quickly. You never want to be caught off guard in any situation.
2. Let them start the conversation
woman listening to partners in negotiations
In many industries, the most common negotiation tactic is to not be the first to list a number. Well, in real estate, you don’t really have that luxury. If you’re helping someone sell, you need a listing price. If you’re helping someone buy, you need to suggest an offer price to the buyer.
But what you should do during the negotiation process is let them speak first. When they speak, you’ll get a sense of how serious they are about sticking to the current deal—and how much persuasion they might need to change their mind. It’s also important to use words that spark interest during the negotiation .
3. Always have a contingency plan
A real estate transaction is truly a hostage negotiation if you don’t have a contingency. It’s important to have a plan B. If you’re representing a seller, you should have other offers in the future. If you’re representing a buyer, you should have other homes that they’re interested in.
It's tough as a real estate agent ; you're not representing your own interests. You're representing someone else. You have a fiduciary duty, which means you can't negotiate against your client.
So your negotiation skills start outside of the negotiation process , giving your seller or buyer more options. If your seller or buyer feels like they’re backed into a corner, you may not be doing enough to represent them in the best light.
4. Be prepared to walk away
One of the most important real estate negotiation tips is to be prepared to walk away. But as mentioned, what you really need to do is make sure your buyer or seller is willing to walk away – unless you’re buying or selling for yourself, they’re the boss.
Take the time to talk to your client. Part of being skilled is that real estate agents must educate their clients about what is available and what they should and should not do.
If someone is trying to buy in a market of experienced sellers, they need to be realistic. You don’t want your customers to be ripped off if they can wait until next year – it might put money in your pocket now, but it will hurt your reputation later.