Real estate negotiation is a critical part of every sale, and one that is often overlooked. Real estate is more than a sales job. Agents are advocates for their clients.
My negotiation skills make a big difference in the outcome of sales. As real estate agents, we show off the great photos we take, we talk about our online marketing skills, and we promote our open house lineup. Real estate negotiation doesn’t get as much fanfare. Yet, acting as a negotiator is one of the most important roles I play in a transaction.
Real estate negotiation: A case in point
I recently sold a house in WeHo. The owner wanted to buy another house in Laurel Canyon, but her home had to sell to make that happen. So, she placed a contingency offer on the home she wanted. (I’ll tackle the topic of contingency sales soon on the blog!) Essentially, her home had to sell before she could buy, so my job to sell her home fast and for the right price was critical.
In the end, sixteen offers came in, and I sold her house for $141,000 over asking price!
During the same time period, my client placed on offer on Laurel Canyon. It was accepted, even though she was competing against other offers. As you can imagine, this was an exercise in timing, negotiation and the experience to handle a lot of moving parts. I negotiate real estate deals of this nature often enough I can reliably deliver results.
So, price is an obvious benefit of good negotiation in real estate. But it doesn’t stop there.
With strong real estate negotiation, you:
- Stand out in a field of buyers: Los Angeles is an increasingly competitive market. With the supply of homes on the decline, more buyers are competing for the same homes. When I negotiate for you, I’ll make sure your offer is competitive but still to your advantage.
- Identify and accept the best offer: This is critical to guiding clients on the best price to offer — or accept, if you’re a seller. Experience in the market, as well as an eye toward market trends, helps me achieve the best sale possible. For sellers, I can review multiple offers and help you accept the one most to your advantage. There’s more than price involved in a sale: A buyer’s financing situation and their requests for personal property inclusions or upgrades will also be a factor.
- Don’t burned by the smaller details: As a buyer or seller, you may overlook the significance of smaller details in the contract. At the end of the day, a sales contract is a binding legal document. It’s important to understand the nuances of the contract to ensure the deal is to your advantage.
- Get the deal done: An offer is not the end of the road. There’s an entire transaction to navigate. A strong negotiator can communicate clearly and persuasively to cut through small concerns that might sideline a deal. It’s not about “winning,” but about solving problems with your client’s interests in mind. We have to see the big picture, and understand all parties’ motivations and limitations. Ultimately, we want to get the deal done.
So, if you’re looking to buy and sell and want a strong advocate in your corner, remember that real estate is more than a sales job. I do the real estate negotiation, so that you can enjoy the process of moving on to a new chapter in your life.