Real Estate Negotiation – 7 Best Strategies

An important part of our job as Realtors is to help our clients negotiate for the best deal on a house. Your confidence and professionalism in this area will make your service memorable to your clients. Here are some strategies to help you guide your clients through the negotiation process.

1. Constantly re-establish trust.

Establishing trust between the parties is the most important strategy in any negotiation. Buyers and sellers know that the other party has interests that are in conflict with theirs. They begin with a certain amount of wariness of each other. It is valuable to establish rapport quickly. Show them that you and your clients will be reasonable to work with. Here are some ways for your clients to establish common ground:

Communicate that they have a common hobby, the same type of job, moved here from the same area, went to the same college, have similar children’s needs, or other relatedness.

Present evidence that your clients are qualified to buy the property.

If your buyer works for a well-known company, this may increase the seller’s trust.

Never delay your counteroffers. Show respect for the seller’s time.

Communicate that the buyer appreciates the home.

Begin the negotiation by establishing rapport. Then continue to reinforce it throughout the closing process. I have noticed that buyers are often reluctant to show that they like the house. They believe that an aura of disinterest will help their negotiation. I recall a transaction in which the buyers met the seller, and expressed how much they liked the house. During the negotiation the seller had multiple offers to choose from. Their offer was selected. The buyers’ encounter with the seller, and openness about how they felt, gave them an edge. Also, they were real people to the seller, while the other offers were just paper. The seller trusted them to close the deal.

2. Don’t get negative feelings involved.

While trust is the single most important factor in a negotiation, ego is the most destructive. Many times I have seen buyers include notes with their offers. They point out faults and deficiencies, and explain why the home is not worth the price. I guarantee that these buyers paid a premium. The point is, never run down the sellers’ home. This will bring their feelings to the table. And negative feelings are an unnecessary hurdle to have to overcome. If you have the opportunity, compliment the sellers’ house, decorating and gardens. Don’t forget that their children are always above average, and their pets are practically human. During the negotiation, anchor your offer price to market data.

3. Play on the Same Team.

It is important that you stay on the same team as your clients. A united front is a strong negotiating position. This may not be the way things really are. The wife may love the house, but the husband wants to negotiate the price. You may not approve of some of the terms of the offer. If you reveal a break in your ranks, the sellers will consider your position weaker.

4. Keep a Grain of Salt.

A healthy skepticism is a good thing in negotiation. Not everything you are told is true. How many times have you heard that the contract has to be in this quarter, or the price is going up? Does the 1% bonus for contract this week mean that you have to rush your offer in? Is the price really firm? Proposals such as these show you what is important to the seller. The seller may want close quickly and for full price, but, on the other hand, the seller may want to close, period. I can think of many times when I thought the buyer’s offer would never work, and yet, they got their terms.

5. Understand Special Needs.

A big part of negotiation is subtle. Little things make a big difference. Sometimes good deals go off track because of a difference in the style or personality of the parties. A misperception of the required tone can lead to a decline in trust. Some examples:

Slower Pace – The sellers were a couple in their 90′s. Since they did not leave the house, the buyers met them several times. The buyers took extra time to sit down and talk, and formed a strong bond.

Holy Ground – The sellers had a small grave for their dog on the property, which they were very sensitive about. The buyers realized this, and sent word that they would leave it in place.

For the Birds – The sellers had numerous bird feeders on the property. The buyers keyed in on this, and offered to continue feeding the birds.

Get a Grip – The sellers’ agent tended to give wrong information, did not handle details well, and was untrustworthy. In order to preserve the buyer’s trust, it was necessary to double check everything, handle paperwork, and watch deadlines.

6. Keep private things private.

Buyers may have some issues that should be kept private. They may have just sold their house, and need to act fast. They may need to start kids in school. They may be in the middle of a divorce. They may have an interest rate that is about to expire. Not one of these pieces of information will get them a better deal on a house. In fact, they all indicate that they are under pressure. Your buyers should be perceived as folks who are well qualified, who truly appreciate this home, and who can be trusted to close.

7. Get good information.

Here are some questions to ask before you and your clients compose an offer:

How is the market in general? How are other actives and recent sales priced?

How long has the home been on the market? Have there been price changes?

Did the house sell recently? What was the price?

Is there a time deadline that must be met? Would a pre or post lease be desirable?

What is the appraisal district value? The taxes? The HOA dues?

Is a disclosure available? A property inspection? A survey?

Are there any offers expected, or on the table now?

Price is just one consideration in the negotiation for a home. Other terms, such as financing, close date, repairs, or possession date may be just as important. Negotiating for a house requires skill in giving and taking information, and in communicating to the seller that your clients are the best buyers for their property.

7 Speaking Trends — How to Make a Powerful Presentation Today

The fundamentals of a great speech stay the same. (Develop one strong idea. Focus on the audience. Be authentic, clear, and committed.) But styles change with time. These are the latest trends in speeches and presentations.

1. Keep it Short

People want information, but they’re already overwhelmed by too much information. If you give them what they need to know in a way they can quickly understand and apply, they’ll love you. Get to the heart of the matter in as few words as possible. Say what you have to say. And stop speaking — even if you haven’t spoken for the allotted time.

2. Let’s Get Personal.

In this age of Oprah, interactive websites, and blogs, formal presentations are out. Instead, savvy speakers are speaking conversationally. They’re less likely to “make a speech,” more likely to talk to their audiences. They move away from podiums. They use personal stories and anecdotes. They say I and you, we and us. They encourage audience interaction.

3. Simple Is Chic.

Sophisticated technology is simple — at least for the end user. A point-and-shoot camera takes in all sorts of data and makes innumerable, complex calculations so you don’t have to. Successful speakers do the same thing. They do their research. They decide what’s important. And they present what the audience needs to know in a way the audience gets.

4. The Love Affair with PowerPoint(TM) Is Over.

Audiences are no longer wowed by PowerPoint(TM). They take it for granted, and if anything they’re a little bored by it. Use it as a tool, a way of presenting information. But don’t let it upstage you. Keep yourself up front and personal.

5. Recycling Is Good for What Ails You.

Creating a good speech takes a lot of time. So once you’ve created a presentation, reuse it. Don’t think you have to come up with something new for each occasion. You can give the exact same speech word for word to a different audience, and it becomes a different speech. Take bits and pieces from one presentation and repackage them. Trim a 45-minute in-depth presentation into a 15-minute overview of your topic. Or use your 15-minute overview as an outline for a longer presentation.

6. Mark your Territory.

It’s almost impossible to come up with something brand new and original to talk about. After all, how many news ways are there to make a sales, a speech, or a successful relationship? Winning speakers take the best of what’s already known and make it new by making it their own. They put their own spin on it, using a unique (and consistent) choice of words and phrasing. Think Chicken Soup for the Soul, the One-Minute Manager, and Men are from Mars, Women are from Venus. New stuff or clever packaging?

7. Everyone Wants a Security Blanket.

It’s a scary world, and people are afraid of losing what they have. They want something or someone who will make them feel safe. If you’re going to challenge them to change, you need to show them why. And you need to reassure them that what they get will be better than what they leave behind. Threats — implied or explicit — will make people react in the moment, but they won’t sustain people’s long-term efforts.

Tips For Making Effective Presentations

Most executives at some point in their careers will have to make a PowerPoint presentation. Fortunately or unfortunately, depending on how you look at it, I’ve had the opportunity to see numerous presentations both good and bad in addition to the many that I’ve done myself. Based on these experiences, I recommend the following for anyone interested in public speaking:

Know your audience prior to giving your talk. People coming to hear presentations want to know what value will this talk provide them. Understanding your group will help accomplish this task. Provide examples or cases relevant to your audience to make the topics easier for your listeners to grasp.

Visit the room before the event. Knowing the environment builds confidence. Visiting the room before the talk also helps prevent problems related to technology malfunctions, etc.

Smile during the talk. See a nice smile and you’ll see people become engaged. It’s inviting, yet many people seem to have trouble smiling when getting in front of groups.

Use eye contact and avoid reading off of your PowerPoint slides. Eye contact makes people feel like you’re speaking directly with them and engages the audience. Start with the left side of the room, make eye contact for a few seconds, then move your eyes to the middle of the room, repeat the process, and then work the right side of the room. Do this throughout the presentation.

Speak slowly and clearly. Prior to speaking, practice in front of a mirror and tape yourself to hear how you’re coming across. Have others critique you in a dress rehearsal presentation to make sure you’re coming across the way you want. Get a good grade in front of your peers and you’re on your way to a successful presentation when it’s time to go live.

Provide an agenda. People like getting an overview before getting into the details and providing an agenda accomplishes this. It is like serving an appetizer before the main course.

Keep to your allotted time. It is rude to go over or under your scheduled time. If you’re supposed to present for 90 minutes, keep it to 90 minutes.

Use graphics to enhance your slides. Pictures, slides, and charts can all be effective tools to get your points across. Make sure you cite your sources properly. Tools including Flickr and Slideshare can be helpful. Both sites allow free access to pictures and power point slides used by others provided you credit the source.

Another effective tool that can be used to enhance presentations is humor. Making people laugh eases anxiety for speakers and listeners. Video and music are also effective tools that can be used to engage your group as is asking questions to promote discussion and dialog among the attendees.