Negotiating Win-Win-Win AgreementsThe best negotiating outcomes benefit all parties to the agreement: buyers, sellers and their agents.
From a strategic perspective,
negotiating is probably the most critical of all client service activities.
From a marketing perspective, satisfying clients is the best way to build your business. On the other hand, failure to bring about an acceptable agreement leave clients dissatisfied and frustrated. People who feel this way about your service are unlikely to contribute to your business growth. The Negotiating LensNegotiation is like a lens that brings different elements together into a desired outcome in which all parties clearly win.
In representing your clients’ interests, you draw upon your market knowledge. Similarly, knowing and understanding what your clients need and want is critical to bringing negotiations to a successful completion. Your sense of commitment and tenacity will help keep you moving toward the ultimate goal: closing a deal that satisfies all parties. Satisfied clients represent a
significant life time value to your business.
They also ensure the continued flow of new business through
your client pipeline.
Desired OutcomesFor ClientsWhether buyers or sellers, all clients want 2 things in their agreements to purchase or sell real estate:
As your clients’ real estate professional, it is your responsibility to ensure these basic criteria are met.
Similarly, regardless of whether you are acting for buyers or sellers, a desirable outcome for you also meets 2 basic criteria:
Since your business is based on helping clients buy and sell real estate, meeting these criteria leads to the
long term success of your business.
Whether buying or selling, other parties to the agreement—usually clients of other agents—want the same outcome as your clients. And not surprisingly, for agents representing other clients a desirable outcome is the same as the outcome you seek. The bottom line: as a real estate professional your role is help negotiate an outcome that satisfies all clients, you and any other agents involved in the transaction.
Elements of Successful Negotiation1. PreparationYour personal expertise and knowledge have helped bring your clients to the point that they are ready to negotiate a transaction. It is now time to draw on your client knowledge to move the negotiations forward. Before negotiating, clarify the outcome that your clients seek. Describe this outcome in as much detail as necessary. This detailed description will allow you to categorize elements that must be met. These features are non-negotiable. It’s also a good idea to identify features that are optional—nice to have but not absolutely essential. Update yourself on the property that will be bought and sold. Make sure you have the latest market and neighborhood information. The more you know about your clients and the property the easier it will be to bring achieve the best outcomes for all parties.
Experience has shown that cooperation is the best approach to completing a transaction. The most successful negotiators work to resolve problems so that all parties feel good about the agreement and about each other. In order for this to occur, everyone involved must work toward mutually beneficial solutions. With this attitude, negotiations usually proceed smoothly. Most people try to play fair. Some people however don’t believe in fair play. No matter what you do, they are prepared to fight and win at all costs. If this happens during negotiations, remember the outcomes you are trying to achieve. Focus on bringing about the outcome your clients want, not engaging in battle with another agents. By all means keep your client informed of the situation and be guided by their input. Your overall objective is to satisfy your client, not win a battle with another agent.
An unfortunate reality about binding agreements is that they are only as binding as the parties intend to make them. In other words, just because an individual has signed an agreement, it does not automatically mean that person will do what he or she has agreed to do. Legal issues aside, agreements work because each party trusts the other to completed the agreed upon actions. As a result, trust is a critical component of negotiation. The best way to get other people to trust you is to show you trust them. You can use the same approach to building trust in negotiations that you use to build trust with prospects and clients.
Patience is one of the traits that prospects look for when selecting an agent. No where is patience more important than it is in negotiations. Despite the pressures, take the time to listen carefully to what is being said. Think about what you are hearing so you can understand how it might impact the outcome for your clients. This will ensure that the negotiations run smoothly.
This is another trait that prospects look for in real estate agents. Like patience it is critical in negotiating. Flexibility is about being open to new possibilities when circumstances change. It also includes the willingness to give up something in return for asking for something else.
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