You have a client who is ready to make a real estate deal. However, you still have a major hurdle to cross before you get to closing. That hurdle is negotiating a sales contract with the other side. For some, the art of negotiating comes naturally, but for others, it is something they must study and practice.
The key to a successful negotiation is positivity. Good negotiators have positive attitudes, are good listeners and approach the negotiating table from a position of strength. They are not on the defensive, but they also do not put the other side on the defensive. Many who do well at negotiating know a few secrets to striking a deal in which both sides are winners.
Reaching the goal
The goal of negotiation is to arrive at a place where both sides walk away satisfied and no one feels like they have lost on the deal. Surprisingly, a successful negotiation may hinge on factors as simple as your body language, your attitude, and the way you phrase your questions and comments. Some strategies to try next time you are working out a real estate sales contract include the following:
- Meet face to face, or at least virtually, where you can watch each other’s facial expressions, see body language and hear each other’s tone of voice. The tone of phone calls, texts and emails can easily be misinterpreted.
- Let go of your fear of losing the sale and missing out on the commission. You may unintentionally project this preoccupation during negotiations.
- Smile, make eye contact and really listen to what they are saying. Your facial expressions can be the first demonstration of a positive attitude.
- Relax and sit naturally, with your body turned toward the person speaking and your arms and hands open. Crossed arms and legs projects an attitude of stubbornness and unwillingness to compromise.
- Don’t be afraid to use your sense of humor without suggesting that you don’t take the matter seriously. Real estate negotiations can be heavy and tense, and laughter may put both sides at ease.
- Begin by noting those things both sides agree on, and be prepared with options for those items the other side may dispute. Have available evidence to support your alternatives.
Even if negotiations don’t go well, never let the meeting end with bad feelings. This may mean reminding both sides of the progress you made and the common ground you found. It is always a good idea to thank both sides for their honest participation and to get them to look forward to the next step in the transaction.