6 Real Estate Negotiation Tactics to Secure Successful Deals

Negotiating in real estate might seem simple when you read about it, but even tiny errors can ruin deals in real life. To get the best results for your clients, you have to understand psychology, strategy, and how the market changes.

In this article, we have collected the 10 most actionable tips from our experts to help you negotiate better, and close a successful deal.

1. Learn the 3 P’s - Push, Pull, Persist

We use the 3 P’s (push, pull, and persist) in negotiation. This gives us choices as talks move forward or backward. For instance, we share information, data, and assistance proactively while being understanding and attentive. We keep going, determined to reach a positive agreement. And we can step back, yes... withdraw from the deal.

Remember, in negotiations, the one who can walk away holds the power. That's where 'pull' comes in handy in our strategies. It applies to both buyers and sellers in any market. As a broker, it's essential to show you're not just eager to close any deal – you aim for the best deal for your clients. Temporarily stepping back from a deal can create urgency for the agreement and strengthen your relationships with clients.

2. Set Realistic Goals

When we negotiate, we use a mix of managing expectations and being careful. For our buyers, we think ahead by imagining what the seller might do. We don't share too many details about the buyer or seller to keep things fair.

For our sellers, we prepare them for the chance of getting lower offers and inspection problems, especially in this changing market. We include these things in the net sheet to set fair expectations. This helps both sides deal with the ups and downs of negotiating, leading to better outcomes for everyone involved.

3. Stay Calm Emotionally While Negotiating

Controlling your emotions, especially anger, is crucial when negotiating. Keeping a poker face is crucial in real estate negotiations. Avoid complaining, being negative, sulking, using strong language, getting upset, pacing, or storming out.

Facing challenges is normal, but improving your negotiation skills requires staying calm and composed, no matter the situation. Not everyone will act as respectfully as they should, so be prepared to handle it with calm and professionalism. Dealing with such situations is simply part of the job.

4. Negotiate on Market Value, Not Just Price

Our approach at Terra Alma involves determining the property's value as the negotiation starting point, rather than solely focusing on the asking price. In hot markets, making an offer above the current market value might be necessary to secure a deal.

While some may opt to lowball with an offer unlikely to be accepted, we discourage this tactic. It doesn't reveal the seller's position. We prefer offering just below the minimum the seller might accept. This compels the seller to decide whether to accept slightly less than their minimum or counter aggressively to keep a strong buyer engaged.

5. Discuss The Terms Before Committing Anything on Paper

Talk through deal details with the cooperating broker over the phone before putting them on paper. Handling counteroffers can become complicated with unnecessary back-and-forth.

When negotiating with an agent over the phone, consider drafting the contract as you talk to maintain clarity. Multiple counteroffers can lead to confusion and a less-than-ideal real estate buying or selling experience.

6. Have a Win-Win Mindset

If you are new, you might make the error of approaching every negotiation as a battle. This not only frustrates the others, with whom you might collaborate again, but it can also harm your client’s interests.

Instead, develop the skill of concentrating on solutions rather than turning every situation into a confrontational crisis. Your clients will appreciate this approach.

Conclusion

Successful real estate negotiation requires practicing key tactics. The 3 P’s - Push, Pull, Persist - offer strategic flexibility and highlight the power of walking away. Setting realistic goals, managing emotions, and negotiating based on market value enhance outcomes.

Prioritizing solutions over conflict is a win-win mindset. Additionally, discussing terms before formalizing agreements minimizes complications. Success lies not only in deal-making but in making positive relationships.

Don’t have time to handle too much alone? You can trust Terra Alma to help you get your dream property in Atlanta.