5 Tips for Business-Winning Negotiations

"Place a higher priority on discovering what a win looks like for the other person." -- Harvey Robbins

Oh the close. That wonderful five-letter word all Realtors strive for and seek. It's the word that keeps the world of real estate going round and round.

But let me share something with you about the close: The only thing that closes any real estate deal is skilled negotiation. It's what you do. It's what you signed up for. And Realtors who are good at it stand a much better chance at succeeding in real estate. In fact, all the top producers I know are excellent negotiators. They know and use the tips I'm about to share with you in this article. They not only understand the fundamentals of negotiation, but also are adept at putting those fundamentals to use.

So, how can you be a better negotiator? Here are five of my best tips:

1. Respect the other side's priorities. Just as the quote above suggests, it's key to understand what the other party wants. Effective negotiators learn as much as they can about what the other side's "hot buttons" are. Work to arrange transactions so that both sides feel as if they've gotten most of what they want. So instead of starting negotiations from an adversarial winner-take-all perspective, stay focused on both your and the other party's top priorities.

2. Know motivations. Besides understanding the other side's priorities, it's also essential to know their motivations for being in a real estate negotiation in the first place. Are they moving with a job? What's their timeframe? Is the school district important to them? Learn and understand by asking the right questions. You may need to sharpen your scripts so that you're asking the right open-ended questions to unearth key information.

3. Do your research and know the facts. Without exception those who have the most information and use it wisely win negotiations. So know the average days on market, list-to-sell price ratios, home amenities and all the other basics. Today's homebuyers are educated and are often well versed in the home buying process, due mostly to the Internet, so to be an expert in your market. And successful negotiators can separate facts from feelings. They avoid letting an unpleasant personality or style drag down the negotiations. They also avoid making the negotiations seem personal by using language such as "I believe" or "I think," focusing instead on statements of fact.

4. Create a sense of urgency. Smart buyers know there are deals to be had, and they don't want to lose out on a good deal. Will interest rates start to rise? Just maybe. And even though there are homes on the market, don't think buyers won't start snapping up those good properties at any time. And remember, don't waste time in negotiations. I've seen some Realtors leave offers on the table for a week or longer before responding -- it's not professional and it's not in the best interest of your client.

5. Keep a positive attitude. Consider how comfortable you'd be on the operating table with a surgeon who's sending out vibes that things might not pan out. Focus on solutions and persist without exception. There really is a solution to every problem. Effective negotiation takes focus, concentration and skill. When it's done right, everyone feels they're walking away a winner.

Tell me what you're thinking. Just how good of a negotiator are you? Do you think there are areas in negotiation where you can improve? What can you start doing today to become a better negotiator?


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Bob Corcoran is a nationally recognized speaker and author who is founder of Corcoran Consulting Inc. (http://www.CorcoranCoaching.com/programs 800-957-8353), an international consulting and coaching company that specializes in performance coaching and the implementation of sound business systems into the residential broker or agent's existing practice. Contact Bob at Article@CorcoranCoaching.com.