Negotiation is a hot topic for all luxury real estate professionals. Not only does real estate negotiation involve people’s valuable time, but a little bit of ego inevitably tends to come into play as well. Meanwhile, negotiations in the upper tier can be emotional for both parties, creating additional challenges for luxury real estate professionals.
Still, there’s no way around it. Real estate negotiation is a necessary step in closing nearly every deal. Rather than looking at this process as another hurdle preventing you from closing your deal, it can be helpful to reframe your way of thinking. In fact, many of the most successful luxury real estate professionals think of real estate negotiation simply as an opportunity to reach an agreement with others.
So, what are some steps you can take to strengthen your own negotiation skills and start closing more deals? The Institute’s own Tami Simms recently sat down with Kofi Nartey, leader of Globl Real Estate and Development, to discuss just that. You can listen to the entire podcast here, but we’ve got three practical tips to keep in mind for your next round of negotiations.
Real Estate Negotiation Tip #1: Do Your Research Ahead of Time
This may sound like an obvious one, but it’s so important that it bears repeating and diving into a little deeper. Preparing for luxury real estate negotiations involves more than just doing your market research (as might often be the case in traditional real estate). Instead, successful negotiations with affluent clientele often mean going above and beyond to research and better understand a client’s personality.
You might, for example, perform a Google search on your client’s profession. From there, you can learn a lot about what their chosen career might say about their personality. You may then be able to apply those details to your own negotiation strategy to make sure that your client feels supported and well represented throughout the process. The better you can get to know your own client, the better you’ll be able to represent them as you work to settle on sale price, contingencies, and other terms.
Real Estate Negotiation Tip #2: Carefully Read the Other Client
There’s no denying that knowing your own client matters during the luxury real estate negotiation process. However, perhaps just as important is knowing the other agent’s client. You can follow many of the same tips (such as doing some research on the client’s career and tying that information back to potential personality traits). However, you can also learn a lot about the other client by reading them through their agent. You can pick up a lot of cues and get a better understanding of their personality type this way.
It’s also important to know and understand the culture of the other client in the deal. In some cultures, for example, it is common to take part in a lot of casual conversation before negotiations are even on the table. Trying to jump right into the negotiations can be insulting and may result in a lost deal. On the other hand, some cultures may prefer a “get down to business” approach. With this in mind, it’s easy to see why knowing as much about the other client as possible can work to your advantage as a luxury real estate professional.
Real Estate Negotiation Tip #3: Understand Every Aspect of the Deal
Last but not least, take your research beyond knowing both your client and the other client. Find out who the other players in the deal are and what their roles may be. From business managers and lawyers to inspectors and every professional in between, it’s your responsibility as a luxury real estate professional to know the details of every player involved in the deal. The more you know about them and the role they play in closing the deal, the better you can cater your own negotiation strategies to them.
Become a Skilled Real Estate Negotiator
If you’re still new to the luxury real estate market, negotiation may be one of the skills that you struggle with for a bit until you find your stride. After all, negotiations in the luxury market are quite a different ball game. By applying these strategies and learning from each transaction, however, you’ll be on your way to building stronger negotiation skills in no time.
Looking for more ways to take your career to the next level? Consider earning the Certified Luxury Home Marketing Specialist™ (CLHMS™) designation through The Institute. Get started today or reach out to our team to learn more about what this designation can do for your career.