Negotiation is a big part of an agent’s job, and while most think of it as entering a battlefield, it should be more like a dance — both agents working together to create a deal that everyone is happy with.
Negotiation. Whether that word sparks excitement or dread, it’s a big part of what a real estate agent does, and hopefully does well! Sukant Ratnakar once said, “Business is not about hard negotiations. It’s about mutually exploring a point of intersection where both parties find their objectives meeting.” Negotiating an offer on a property is a perfect example of this.
One question that was raised recently by one of our Power Agents® recently was whether it was better to put offers and counter offers in writing, or if negotiating the counter with the buyer’s agent face to face verbally was better?
There isn’t a right and wrong answer here, but the truth is, it just depends on who you’re dealing with, and what each agent’s preference is. Personally, I don’t believe in emailing, I love being face to face with the other agent, or at the very least, on the phone to hear the tone in their voice. I want to hear their reasoning on the issues that arise, and I want to come alongside them because at the end of the day, we are negotiating for the same thing — the seller wants to sell, and the buyer wants to buy, and we’re both there to make that happen.
This isn’t about outdoing the other agent, or challenging them in every point. Its about coming together to say, “Okay, let’s work together to figure out how we can get this done for both our clients.” I like to do that verbally, whether it’s in person, on zoom, or on the phone because that allows me to get to know the other agent and the kind of work they do. I do also follow up with a written counteroffer when needed.
TIP: Check out this related article, “Winning The Heart Of the Listing Agent: The Key to Having Your Real Estate Offer Accepted.”
Don’t Make Assumptions
Good communication is key in all aspects of the real estate transaction, especially when negotiating the contract. While I said that having the counter-offer conversation should be done verbally, it’s wise to be clear on what everyone else in the transaction wants. Does the other agent want it in writing? Do the sellers? Do the buyers? We can’t assume that everyone is on the same page.
TIP: Here’s a related article by Entrepreneur, “11 Things You Need To Know About Real Estate Negotiations.”
Repercussions of The Deal Falling Through
One of the reasons I don’t like having the counteroffer in writing is because if the deal falls through, I don’t want that written counter-offer to exist anywhere. If it does, then my next negotiation doesn’t start where I want it to start. If I negotiated with this buyer for a lower number than I’m asking for on the house, and if that deal falls apart, then I’m not forced to start there when the next agent comes along with an offer. Every deal, and every negotiation is unique, so you can’t automatically start (or end) at the same place.
The Heart of the Matter
We’re real estate agents. We love to talk to each other, and it’s why we love real estate. We are also people pleasers. I’m sure you are, and so is the agent you are talking to. They want to please their client, obviously, but they also want to please you. So, if you can help them please their clients, and if you can help them do those things, then you’ve got it. The deal is yours.
Are you ready to start taking things to the Next Level®? If you don’t already know what you need to do to get to your next level, we can help!
Power Agents®, for more strategies and tools for negotiating offers between buyers and sellers, check out the stunning and helpful content in the Negotiating Offers tab in the Classroom. Whether you need a boost of confidence or empowering dialogues, we are here to help you get the skills you need to be the go-to negotiator for the buyers and sellers in your farm area.
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