Ever wondered how Real Estate Agents negotiate a contract?
You may have an image in your head of how they do it – agents and buyers and sellers sitting around a table with documents in front of them, low lighting, vigorously throwing offers back and forth until the dust settles. Right?
Sorry to say, it’s not really like that at all.
Negotiations take strategy, that’s true, but they can also be very broken up and piecemeal, sending offers back and forth over email or call as things come up. The type of negotiation you may need to use depends on what type of real estate you’re looking to purchase, and what type of market you’re working in. That’s why an agent will always be a better negotiator than someone looking to buy or sell on their own.
Here are some of the methods we use as agents to get our clients the best deal possible and make sure everyone walks away happy!
Keep Your Lips Sealed (At First)
The ideal outcome of a negotiation is for both sides to walk away satisfied, which means that you’ll eventually end up somewhere in the middle of the two initial offers. For this reason, it’s smart to let the other party offer first. This gives you an immediate upper hand and allows you to have a frame of reference in mind as to where the contract will end up once you start the negotiations.
If the other party offers first, you can take that into consideration and come back with a counteroffer based on their initial offer. Occasionally their initial offer will be perfect for you, in which case negotiation isn’t necessary to stress over and you both can move to close. But letting the other party speak first gives you an immediate upper hand in the negotiation process.
Negotiating a real estate contract can be a very emotional process.As with most things, being kind toward everyone can take you a long way. The seller has an emotional connection to the home, so try to keep any negative thoughts to yourself when negotiating. You’ll likely get a better deal if you can keep them in good spirits, anyway.
Keep Your Emotions in Check
On the other hand, if you’re selling your home you want to keep your emotions in check during this process. Don’t respond to your offers immediately – this gives the impression that you’re eager to sell (which you may be) and it gives the buyer an advantage right away. Or if you’re a buyer, responding to any seller’s offer immediately gives the same impression. You want to take your time and work closely with your agent to respond at the right time to the other side’s offer.
Get to the Point
Don’t be afraid to be direct when negotiating. How will you ever get what you want if you don’t ask for it? Beating around the bush will only prolong the entire process, causing unnecessary stress and frustration. Lots of tiny back-and-forth offers can drive some people crazy or exhaust them. Ask directly what you want or need, and move from there.
This is one of those times when you’ll be glad for your agent. They’re gonna be there to catch any red flags and make sure you walk away with the best deal for you. You can be direct, and let them worry about catching any slip-ups.
These are just a few of the methods a lot of agents use when negotiating a Real Estate contract. The ultimate goal is to always walk away with a deal that makes both parties happy and satisfied, and a great agent will be able to do that. A personable agent is a great value in any Real Estate process.