Negotiating is part of every deal.
And in the upcoming market, we can expect a whole lot more of it.
But there’s a mistake I see agents make over and over again when it comes to negotiating: they forget what the end goal is.
The Goal of Negotiating
So, what is the goal of a negotiation?
To get to the settlement table.
Yes, it’s that simple. Everyone in real estate is looking to close the deal. The buyer’s goal is to get the house, and the seller’s goal is to sell the home. Everyone else involved—closing attorney, mortgage lender, and agents on both sides—want to help their clients achieve their goals.
Biggest Agent Mistake when Negotiating
The problem is too many agents bring drama. They want to be the tough guy or tough gal negotiator. In short, they want to win.
Agents who lose sight of the end goal will be abrasive or aggressive, eventually turning people off. When you focus too much on winning, you can actually prolong the process and make it more stressful for your clients.
Create a Win for Everyone
Here’s the key with negotiations in real estate: it’s called being a cooperating agent.
You’re supposed to cooperate with the other agent. When you’re nice to them, you let them know what you’re trying to do. You’re trying to come up with a win for everybody, so we can get to the table and close the deal.
Negotiations are much smoother and less stressful when you act as a cooperating agent. So instead of trying to win everything, focus on completing the sale. At the end of the day, that’s the only job of a real estate agent. Get the buyer the house or get the home sold.
When you keep your sights on that, your negotiations will be stronger, and your clients will be happier.