Learning to Negotiate

"What's your best price?"
"That's too expensive."
"Your competitor is selling the same thing for…."
Most salespeople hear statements like this every day. When you’re thrown into a situation like this, it is important to know how to negotiate effectively.

Here are a few tips to improve the negotiation process:

1) Relationship First – In real estate, we’re not selling a one-of-a-kind product that trumps any competition. You MUST develop a relationship with the other side, which in this case is your buyer or seller. Don’t think because this is 2010 that you can establish a relationship with a client via text or email. Face to face is and always will be king when it comes to building a valuable relationship. Email is only valid as a confirmation tool, not a substitution for interpersonal interaction.
2) Do Your Research – Too many times we as agents are quick to pass along prices before knowing crucial client information. Do you know their true motivation to buy or sell? It is imperative to get a grasp of their financial picture and understand the dynamics of their situation before you can move forward in the process. By knowing the key facts, you are a step ahead at the negotiation table.
3) Know Your Competitors –Be prepared to hear that you have a competitor. Potential buyers in the internet age are savvy and look at many avenues when buying and selling. Find out who might be jockeying for your services, know their strengths and weaknesses and develop a strategy to beat them. You can’t do that if you don’t ask, so remember: God gave us 2 ears and 1 month so we can do more listening than talking. Get the complete information, be strategic and get yourself closer to a negotiated agreement.

Keep these in mind the next time you go into serious negotiations. You’ll see immediate dividends and might just impress your client.

We’ll see you home.