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-Simone de Beauvoir
Learn how to keep talks constructive so that everyone in the transaction comes out a winner
In the frenzy of a transaction, the line between negotiation and manipulation can sometimes be gray. Negotiation is the ability to bring about compromise between two or more people while manipulation seeks to satisfy only one’s own wishes.
Real-life examples of manipulation include encouraging a seller to accept an offer exactly as written without negotiating a better deal for your client; advising your client to accept an offer before presenting other offers later the same day; or withholding your comparative market analysis to help get a lower list price.
The negotiation process during a real estate transaction should never involve any form of manipulation. Unfortunately, sometimes we can venture off into this area without realizing it. To avoid this trap, keep these tips in mind as you work to negotiate the best deal for your clients.
Realize that negotiation is a process.
Regardless of how quickly you want to move a negotiation to completion, some people need time to consider an offer or to discuss it with a family member. Although you may sometimes need to encourage your clients to act quickly so they don’t lose out on a particular offer, respect the negotiation process and honor your client’s right to think it over.
Avoid high-pressure tactics.
Remember there is a wanted result sought by all parties in the transaction – to transfer the ownership of a home. When a disagreement arises during the negotiation, look for solutions that will appease both sides without forcing the issue. High-pressure tactics do not work. If this is something that you use, the practice will backfire on you and eventually lead to a short-term career in the real estate industry.
Let both sides win.
In almost all negotiations, both sides want to win. If one person is victorious, then someone else will leave the transaction unhappy. It is important to understand that to have a successful negotiation; both parties need to feel as though they’ve won something. Your clients might not get exactly what they want in the transaction, but if you can achieve most of their goals and allow the other party to achieve a portion of their desired outcome, then everyone is a winner. If you use manipulative selling to beat the other party in a negotiation, expect long-term referrals and repeat business to disappear.
Present all of the facts.
Don’t “wing it” when you present information to your clients. It is your duty to your clients and customers to present all the facts during the negotiation process. If you’re presenting two offers, but the lower one gives the sellers more time to move, which you know they want, don’t pressure them into taking the higher offer by failing to mention other factors.
Don’t forget who you’re negotiating with.
There will probably be a next time when you need to negotiate with a sales associate representing the other party. How will others remember you and your negotiation style? You need to remember to conduct yourself properly during all negotiations so as to maintain your professional reputation for future transactions. Employing manipulative tactics will only make a bad impression on the customer, client or the cooperating salesperson. This will hurt you down the road. Note that more dissatisfied customers will tell people about their experiences than those who are happy.
You might lose a little on a particular transaction by using good negotiating skills and avoiding manipulative tactics, but you will come out ahead by gaining loyalty and trust. Effective negotiating skills will help you achieve longevity, establish your reputation within the community and build referral business from your clients.
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