Negotiating with the other agent— it’s what I consider the fun part of the business.
You have a clear understanding of your client’s outcomes and desires. Thoroughly articulated conversations and communication that need to happen have already happened.
Now, you must have the same conversation with the other party’s agent.
- What does their client want?
- What do they desire?
- What is their outcome in this transaction?
- What are they looking for?
They’re not going to give you the whole story, but the longer you can talk to that agent, the better relationship you’ll build with them. When you commit to clear communication, they will share more information with you.
This creates a better headstart for the negotiation because you’ll be able to craft your offer in a way that speaks directly to the other party’s bottom line.
So, try to get as much information—through clear communication with that agent—before you even start presenting offers to their client.
This should come well before you and your client sit down to write the offer. That way, you’ve got information that will pertain to that offer.
Knowing when and what to communicate gives you and your client a competitive edge.
When it’s time to have conversations with the other agent
So, you know your clients like a house and want to make an offer. Start having conversations with the listing agent.
- “Hey, where are your people moving to?”
- “What are they going to like most about an offer?
- “What’s most important to them—price, time, contingencies, etc.?”
- “What will bring them the most value if we start negotiating?”
Build that relationship. Build that communication with the other agent.
No surprises
If your client is surprised when they put in an offer and the seller rejects it—and if you’re surprised by the outcome—you didn’t have enough communication with the other agent.
You didn’t do your job finding out what the other side wants. You should never be surprised by what it takes to win a deal.
That comes down to—
- Clear communication
- Knowing the other agents in your market
- Creating great relationships with them
This is where relationships really matter. Neither your client nor you should ever be surprised when you lose a negotiation.
You should know, “I lost it because I stopped at my number, and there were other opportunities that the seller liked better. And they went with one of those.”
The good news is you helped your client stay firm on their bottom-line number and avoided committing to a price they can’t afford.
And while no one likes to lose a negotiation, you can help your clients see the advantages of sticking to their financial plan.
