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Today, I’ll delve into real estate negotiations. Also, I’m sharing the advice I recently provided to one of the agents I’m currently coaching, which ultimately enabled them to win their negotiations.
The agent was representing a buyer who had made an offer on a $2.7 million listing. Negotiations were not going smoothly, so the agent reached out to me for assistance. Although I didn’t directly handle the conversations with the buyer or seller, I provided coaching on the negotiation process. One key aspect I emphasized was the importance of giving both the client and yourself enough time.
For instance, if you receive a counteroffer from the seller that is weaker than expected, and you anticipate your buyer may reject it and potentially kill the deal, it’s crucial to create space. In the specific case I mentioned, the counteroffer from the seller was not strong at all.
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Instead of immediately relaying the counteroffer to the buyer, we decided to send it via email and then followed up with a text, informing the buyer that we had sent the details and that I would call them in an hour and a half to two hours. This approach was intended to allow the buyer time to transition from a reactive state of mind to a responsive one.
By granting them this space, the buyer would likely first react negatively, expressing a desire to move on and explore other properties. However, as time passed, they might begin considering the positive aspects of the home and wonder about the options I mentioned. This shift would move them away from a purely reactive mindset.
This strategy proves effective when presenting something that the client may not initially be enthusiastic about, preventing premature emotional reactions that could kill the deal unnecessarily. It’s unfortunate how often deals are lost due to agents and clients reacting impulsively during negotiations.
The tip I wanted to share is to buy time, as it takes time for clients to shift from a reactive state of mind to a responsive one. Send them an email with the details, immediately follow up with a text notifying them about the email, and let them know you will be available for a discussion in an hour and a half to two hours.
During the conversation, present the options you’ve considered, aiming to guide them toward a more logical state of mind. I hope this tip proves helpful to you in your negotiations. If you need more help with your negotiations, call or email me. I’m always happy to help.
