Every business has different measures of success, but the main one, which is intrinsic to every business is your net income. When it comes to real estate – the number of closed deals signifies real success or failure. So, what can be done in order to eliminate failure and get closer to a success?
When we take a look at the previous history – the main negotiation style was “win-all” which meant selling to a client at any cost. Nevertheless, everything changes. More and more projects have been developed, people became more educated about real estate and, what is more important is that the need of the client has changed. If before they cared about price, money, project, broker now they pay attention to the value that they can get, the long-term relationships with the real estate consultant and service quality. “Value-based” relationship style gained extreme importance in real estate, so much so that we can even consider that property consultants must be genuinely empathetic towards the clients.
To have a better understanding of the process lets take a gander at a value-based negotiation. This type of negotiation understands value and needs of both parties and exerts every effort towards the buyer to find amiable solutions that satisfy both sides. Instead of being focused on the price and selling property, it is important to work in harmony and to offer the best options that will satisfy both parties and avoid challenges that may thwart the transaction.
How to start your value-based negotiation?
Instead of just following the flow of the conversation, without any strategy, plan your pitch. Think of what you would like to receive in the end. Plan and strategize your meeting with the client by setting up the following questions:
- What is my end goal?
- Who is my client and what is he looking for? What is his objective?
- What is the key information I need to receive from the client in order to understand him/her better and to offer the best product?
- What obstacles may appear during this meeting?
Anticipate the challenges
Be careful with the information which you are going to present to the client. Avoid opinions about property value or real estate market situation.
Use expert’s analysis, real numbers from reliable sources. Share real estate market numbers at the beginning of the negotiation and keep them at the center of your discussion.
Listen to the client and the information he is going to share. You can then begin to work towards a number suitable to each side, based on facts.
Be emotionally unattached
Keep your frustration and any other negative emotions under control. There will be annoying clients who may have more questions than others. Some of them will be first time buyers, some may have had a bitter experience, and some are just extra careful. You must understand that it is their right to know everything until all their concerns have been addressed. This law is especially true for ideal outcomes in a negotiation. The more straightforward and fact-based you can stay, the stronger the chance for a positive outcome for your client. Remember the golden rule of selling anything – Appeal to the heart.
Don’t jump into solution too early
If the client has any issues with the property or the deal – don’t give him your solution beforehand. In many cases real estate consultant can arrive at a solution that may lead to a conflict. This tactic may leave both sides unsatisfied because the negotiations weren’t value based. What is more is that it may look “unprofessional” in the eyes of the client. Instead, listen to all his/her concerns, suggestions and share your constructive solution of the problem. When you hit a stumbling block, pause and think outside the box. This is your opportunity to increase your value in your clients’ eyes and defend your service cost.
The strategy that works well looks very simple – win-win or no deal. When your negotiations follow this principle, you will earn more closings, more referrals, and experience a richer real estate career.