A lot of people become real estate agents because they think it is an easy way to earn commissions and make big money.
However, real estate agents do more than show houses and fill out contracts. They are salespeople who negotiate with both property buyers and sellers. After all, buyers always want the lowest sales price, and sellers always want the highest sales price.
Only a skilled agent can bring the two sides together on one agreed price. If you can develop your negotiating skills in this way, you can land a successful sale every time.
Check out the following ways a real estate agent can improve their negotiating skills in buying and selling properties:
1. Gather Buyer and Seller Information
A real estate agent is a professional who must have all their information and facts together. When you take on a client or negotiate with someone, whether they’re a buyer or seller, you need to gather all relevant information from them.
For instance, when a seller wants you to help them sell their property, you need to gather the seller’s contact information, proof of ownership of the property and a complete appraisal report on the property.
You need to know all the features and problems that exist on the property. Once you obtain this information, it will be easier to talk with buyers when they ask you questions about the property.
2. Use an Escalation Clause
If a seller is likely to receive multiple offers for their property, then an escalation clause might be necessary if they want to sell quickly.
With an escalation clause, a buyer agrees to pay up to a certain amount higher than the seller’s current highest offer. This could be anywhere from $100 more to thousands more.
The only downside of an escalation clause is the seller won’t be able to keep negotiating or accept any more counteroffers if they agree to it.
3. Have Patience
Being a real estate agent can be stressful because you’re making a living off your commissions. This may tempt you to lose your patience and prematurely push through a deal without waiting for more offers.
Any good agent will have patience when negotiating any real estate deal.
4. Remain Respectful
Real estate is a tough business, especially when you’re the agent. Buyers and sellers might use salty language that is disrespectful or annoying. Perhaps they keep changing their minds or do things that upset you.
Whatever the case, you need to remain respectful when dealing with them. If you lose your temper or act hostile in any way, they won’t take you seriously anymore. Like any good salesperson, you need to keep a smile on your face and maintain a cheerful attitude no matter what.
5. Focus on Market Value
The market value of a property should be the basis of setting the asking price. When you’re dealing with a situation in which a seller wants a high price, and the buyer wants a lower price, the market value is the only tool that you’ll have to negotiate on both sides.
If the buyer and seller can see the market value set by the local appraiser, then there is no prejudice in setting a price that matches this value.
6. Gain Experience
Gaining experience is the key to becoming a good negotiator. As you begin working as a real estate agent, practice your negotiating skills by taking on a couple of clients at first.
If you make mistakes, write down those mistakes and work on avoiding them again in the future. The more you practice, the better you’ll get at negotiating.
7. Continue Education
There are real estate seminars and educational courses all over the place. Some of them are held online, while others are located in public venues. Find the ones which focus on developing negotiating skills.
Learn from other agents about how they’ve improved their negotiating skills. Make connections and establish friendships with people from who you can learn.
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