Real Estate Negotiation Tips

A fun part of being a real estate agent for many people is negotiating deals with other agents. We've compiled a list of our top real estate negotiation strategies from our expert Dundas agents to help you improve your skills and capitalize on opportunities in your future transactions.

Avoid making the first offer

Always aim to be the person who names your initial offer or price second while negotiating a deal. According to numerous studies, quoting your price second results in a better deal and less anxiety after discussions.

According to a Harvard Law School Program on Negotiation study, MBA candidates who made the first offer when negotiating a single-price agreement felt more worried about their judgments and, as a result, felt less confident and satisfied with the results.

‍Choose the right body language

Be aware of your voice, facial expressions, and body language depending on who you are negotiating with. Many facial expressions occur instinctively, and we sometimes fail to notice them. Nonetheless, our facial expressions nearly always elicit a reaction in the minds of others. Likewise, our body language can also convey emotion.

For instance, having your arms crossed is usually a sign of being defensive, while shaking your head from side to side can show disagreement or displeasure. The pacing might be seen as an intimidating strategy or as anxiety. Smiling, on the other hand, causes our vocal cords to sound more friendly and charming. You should always be aware of your own, your client's, and the other side's body language and facial expressions.

‍Do your research

If you're working with another real estate agent, look into their bargaining strategies and what they usually compromise on. Networking is one method for obtaining critical information. See if anyone in your real estate network knows about another agent's behavior or bargaining strategies.

Understand the other party's personality profile (i.e., DiSC profile) so that we [agents] can communicate successfully" throughout the negotiating process. If the other party, for example, has a dominant personality, they will most likely be direct with you. In exchange, you should be direct and to the point. Conscientious people will demand numbers and facts, so come prepared with all figures laid out. Utilize your high emotional intelligence to interpret other people's moods and behavior, and deliver the appropriate message and information to help soothe them while moving the deal closer to completion.

When you are selling or buying a house, you should also find out as much as you can about it. Employ a reputable house inspector to inspect the property for any hidden fees. Investigate the neighborhood and market to make the greatest offer on your client's behalf. Another research strategy is to keep track of an agent's previous deals and compare the selling price to the initial listing price. "It's difficult to argue with data of any kind." Give specific examples or facts that the other side might not have to give yourself an edge.

Be mindful of your emotions.

When it comes to negotiations, you never know how someone else will react. They may have tantrums or act patronizingly. Therefore, you must maintain emotional control. Don't let the actions of others throw you off your game. If you go with your gut and stay friendly and polite, your client will be happy with how you handled the problem and how you handled their money. Other real estate professionals should remember that residential real estate is an emotionally charged experience for both parties. They are experiencing various emotions. Hence, try your hardest to accept those feelings. Always follow through on what you provide or promise.

Real estate negotiation psychology is an art form that should be studied.  If you want your offers to be accepted more often, you need to know the basics of how to negotiate. Study the tips that our real estate agents gave and learn when to leave the closing table, or better yet, contact Zalter’s Dundas real estate agents. 

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