You’ve been working hard with Sam and Suzy Buyer for months. Finally, you find the perfect house, and it’s listed at a great price!
There’s only one problem…
Sam and Suzy want to write a low-ball offer. 😑
Try as you might, they insist, you write it, the Listing Agent laughs in your face, the deal goes nowhere, and…
The house sells the next day to someone else for the full asking price.
You’re frustrated and angry with Sam and Suzy.
Well, you might as well go ahead and fire them because you’re never going to find them another house that good for that price.
But this situation is not their fault. It’s your fault.
Yes, you must follow your clients’ lawful instructions. But you’re not a robot. 🤖
You’re a highly-skilled (human) expert advisor, right?
So, here’s how you — the expert — can ensure the above situation never happens:
1. Ensure the buyers understand how the negotiation process works, long before you ever get to this stage. Ideally, this is part of your formal Buyer’s Meeting, but at the very least, you discuss it over the phone or in-person early on in the relationship.
2. Explain that the offer depends on the property’s true value, not the list price. This means that a low-ball offer might be warranted sometimes, but if it’s a well-priced property, they need to recognize the opportunity and be willing to offer close to asking.
3. Ensure you’re not dealing with flakey-flakes. If you are, fire them and move on. Honestly, who has the time to waste on flakey-flakes?
4. Partner with your clients to earn their cooperation and respect. See below:
Partnering with your clients:
When you’re ready to write an offer, determine the best negotiation strategy, and discuss it openly with your clients. This makes them feel part of the process, improving the likelihood of a successful conclusion. 😁
Lay out all the possible repercussions of whatever strategy you are recommending.
“Here’s my plan, here are all the possible responses we might get, and here’s what I suggest we do in each different scenario.”
The more you tell them, the less stuck they might feel when you hit an impasse and need to re-evaluate your strategy. After all, you’ve already anticipated every possible scenario,
I’m always gobsmacked at the number of agents who haven’t got a clue about how to negotiate a deal.
How do they even survive? 🤔
The biggest rookie mistake? Giving up too easily.
Second biggest? Thinking they’re doing their clients a favor by acting belligerent.
Successful agents know that the sellers want to sell, and the buyers want to buy. A successful negotiation is a cooperative process, not an adversarial one.
Most of all, successful agents know the importance of educating their clients well ahead of time and partnering with them during the negotiation.
This article was inspired by module #5 – Working with Buyers – part of the Agent Skills Master’s Program.
In the ‘Working with Buyers’ module, I explain step-by-step how to establish a solid foundation for your buyer-client relationships, tactfully control the buying process, and minimize wasted time. Stop being a door opener and start earning the respect you deserve as a highly-skilled expert advisor.
Here’s another article inspired by the same module: Ten Tips for Working with Builders