Negotiate Like a Seasoned Agent: 6 Tips for Novices

Negotiating real estate deals can be intimidating for newcomers, but there are a few straightforward tactics that give you the power to negotiate like a pro. Here are six of the most crucial elements in making successful real estate deals.

1. Know the Seller

Seller Leads

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They say, “A good lawyer knows the law; a better lawyer knows the judge.” Likewise, if you are friendly and familiar with the current owners of a home, you will gain a long list of advantages in negotiation. Beyond the simple reality that we are all willing to step further out of our way for those we like, knowing the situation of your sellers can give you mountains of¬†leverage and help you understand a seller’s limits.

If you don’t know a seller, then start getting to know them during negotiations. Simply let them talk first and ask probing questions about their background and future plans.

2. Know the Options

Houses for Sale

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By knowing the other listings available in the area, you become a stronger authority when making comparisons and you will have a better sense of where “a good deal” starts and stops. By connecting your buyers with multiple listings that meet their criteria, you also empower yourself during negotiations. Whichever party can walk away from rejection with the least difficulty gains the upper hand.

3. Know the Listing

Real Estate Listings

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If the listing is fresh on the market, you’ll have far less wiggle room than you might with a two-year-old listing. Beyond the standard bullet-points included in each listing, be aware of the listing’s age, the area’s advantages, and the history of real estate value in the region.

4. Know the Financing

Real Estate Financing

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To give your buyers more options, know all the potential financing solutions. If you rely on the buyers or sellers to provide this information, you may come to an unnecessary deadlock early in the negotiation process. On the flip-side, knowing your options opens up a greater range of offer figures and wins the appreciation of almost any buyer.

5. Don’t Show Your Pockets

Real Estate Money

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No matter how much money you have at your fingertips, you want to get the best deal possible. However, if a home’s sellers are aware that you have an unrestricted budget, they may decline early offers in the hopes of reaching deeper into your buyers’ pockets. Even after the deal is done, the seller should not be informed of the highest figure your client would have been willing to offer.

6. Make the Offer

Real Estate Negotiation

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Making an offer puts you in a position of control, so your first offer should be made early. However, rather than using concrete figures, you should extend a range such as $110,00 to $130,000. Sellers are far more likely to move forward, albeit tentatively, if looking at an offer range. Simultaneously, if you have accidentally made a high-ball offer, you won’t leave wondering how much higher the seller would have gone.

By following these simple tips, you can make the best deal possible without alienating your sellers or misleading your buyers. In short, when you use these negotiation tactics, everyone wins.

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