Real Estate negotiating doesn’t only occur when an offer comes in. It’s happening whenever you communicate with prospects and clients. Here are some of the biggest mistakes real estate representatives make in negotiating.
Talking Too Much
A common mistake with real estate representatives is talking too much. The more you talk, the less opportunity you have for understanding the prospect and gaining their confidence. Skilled negotiators listen much more than they speak. They plan what they’ll say and limit discussion. The key is questioning prospects until you fully understand their needs. Then respond to their needs using a fact based approach.
Fear, Motivation, Threats and Intimidation
Real estate representatives seldom know they threaten and intimidate while negotiating. Some examples:
- This is the best price you will get
- These buyers won’t pay more
- If you counter offer this contract, I will lose them
- If you don’t accept this offer, how long are you willing to wait for the next one?
Negotiating is a big part of why they hired a real estate representative. These statements imply you’re unwilling to persevere and get them what they want, so they may think you’re not doing your job. You can’t effectively motivate people with such pessimism. Be positive, optimistic and persevering in your negotiating.
Giving Up Too Easily
Sales people frequently believe buyers who say, “I will not pay any more than that” or sellers who say, “I will not take any less than that”. Every buyer or seller says this.
Remember, both buyers and sellers are motivated: they want to make a deal. Keeping the negotiating going keeps moving them closer to a deal. Negotiating takes time and patience.
If they haven’t said no at least five times you’ve given up too easily.
“Press on. Nothing in the world can take the place of persistence. Talent will not; nothing is more common than unsuccessful men with talent. Genius will not; unrewarded genius is almost a proverb. Education will not; the world is full of educated derelicts. Persistence and determination alone are omnipotent. The slogan ‘Press On’ has solved and always will solve the problems of the human race.” – Calvin Coolidge, 30th US President
Poor Timing
Timing is critical for negotiating. Many real estate professionals show poor timing in many ways. Some don’t take enough time in explaining an idea. Some make great points at the wrong times. Some overbook themselves and lack sufficient time for completing a presentation, putting unnecessary pressure on their clients. Some pick the wrong time for giving up on further negotiating. Worst of all, some give away commission dollars unnecessarily.
Skilled negotiators know what to say and when to say it. They’re always composed and never rushed. They carefully explain things in layman’s terms, knowing prospects don’t necessarily know real estate jargon. They regularly pause and ask clients if they have questions, ensuring they’re fully understood. They also know the best times for delivering their best closing points.
Creating A Battleground
Skilled negotiators ensure buyers and sellers like each other. If they don’t get along, negotiations may stall or end. People simply don’t do business with people they dislike.
Real estate professionals often don’t realize they’re sabotaging good relations by making negative comments about the other side. Doing this turns negotiating into fighting, and no one wins then. Remember, all clients all have the same ultimate weapon: the word “NO”!
My RECO approved course Power Negotiating discusses other common mistakes real estate professionals make in negotiating and many other insights into effective negotiating.
