Remember the 7 steps to a successful negotiation from the previous article. Negotiating is simply reaching an agreement between parties with different needs. Agents need to find out what is important to each side so that they can give and take on both sides, making everyone feel satisfied.
These points will be relevant to you whether you are the listing agent or buyer’s agent. Keep in mind what you can and cannot disclose. Ask good questions and make good notes.
Benjamin Franklin famously stated, “By failing preparation, you are preparing for failure.”
What is the motivation of the seller?
Find out why the seller is moving. Are they moving to sell their home? Are they moving? A seller who has bought their next home before is usually more motivated than someone who is just moving to find their next property. Ask the agent. Do you know the motivations of your clients whose listings are currently active? Find out if you don’t. This could help you find the right buyer for your property.
What is the ideal closing date and possession date for the seller?
Is there a time frame the seller needs? Is there a specific closing date or lease-back that the seller needs? They may be concerned about the timing of moving across the country or building a house.
What is the most important thing to the seller, besides price?
Are they looking for a stainless steel fridge that they can’t part? Would they prefer to include all of the furniture in the sale? Do they want to keep the pool table and hot tub? These details are crucial for both the buyers and you as the listing agent. This information could impact the way you approach negotiations, regardless of who you represent.
Is the seller open to other offers but turned them down?
If so, then what was wrong? How do you win this time? Are they setting unrealistic expectations? If they are not the listing agent, find out what information they have about past offers.
Is the home currently under contract?
What is the cause? Inspection, condition, appraisal, or financing issues? Were they resolved if it was inspection issues? You can use any setback as leverage in your negotiations.
Is this a situation of a competing offer?
Negotiation skills are crucial in multiple-offer situations. What number of offers are there? What is the showing activity if there aren’t multiple offers? Is the listing agent interested in buyers from their own country? What is the required amount of money to win the bid? This should be communicated clearly to your buyers.
Is there a contingency planning?
If you are the seller, discuss the plan with your clients if the property doesn’t sell. Is it possible to keep the home? Or is it a must-sell situation
These tips will help to get to know your sellers, whether they are potential buyers or clients. For more tips on closing deals, refer to the article “7 steps to successful negotiation”.
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