Professional Real Estate Negotiation
Price negotiation is often the most stressful part of a real estate agents job and the area of expertise where a good real estate agent is worth much more than the commission they charge.
The very meaning of the word “negotiation” says it all, it is derived from the Latin words “neg” and “tiate” and literally means “not leisure”. Having been involved in thousands of negotiations myself, I can attest to that very fact, however, it is also the most rewarding part of the job, as a well run negotiation results in both parties being happy and a great result for the seller.
Negotiations should never be confrontational or positional as modern and effective negotiation techniques calls for the negotiator to be empathetic and use a system of interest based bargaining rather than the more old fashioned system of positional based bargaining.
This means that we focus on the needs of the buyer and thus can often overcome price hurdles by using creative solutions. These can include arranging better finance options, changing settlement times, mitigating risk by arranging more thorough building and pest inspections and being creative with contract conditions that will alleviate stress and uncertainty for the buyer.
Negotiation often includes a back and fro process, which most people do find stressful, however, it is this very process that ensures both parties ultimately feel that they have come to a fair conclusion.
A good agent will know how to asses a buyer and start the negotiation process even before any first offer is made. This skill is developed over time and comes from training and practice. A skilled negotiator will never upset the people they are negotiating for and with, as the focus should always be on the problem and never on the people.
The very nature of an upward moving property market means that the real estate agent needs to obtain record prices for homes on an ongoing basis and this is generally achieved by the skilled negotiators in the industry.