Everything Is Negotiable!

       


Negotiation skills are essential for success in real estate


Incredibly, almost unbelievably – most real estate sales people have never studied negotiation. Research shows us that less than 5% of real estate sales people have read a book on negotiation.  This is disgraceful! Throughout the world, home sellers are losing millions of dollars due to the lack of skill in the crucial role of negotiation.

We believe it’s unethical to be an estate agent and not make every effort to become a skilled negotiator.  If an agent sells a property for anything less than the buyer could have, would have or should have paid then the agent has failed the client.  Negotiation is a part of day to day life, politics, world issues, at work, with our kids etc.

Anyone selling a property can put an advertisement on the internet or arrange a sign board to attract buyers, but the area most people struggle with is the negotiation. Unless your agent can display superior negotiation skills then all you’ve hired is an overpriced advertising rep.

Some excellent queries and questions for your agent.
  1. How many books have you read on negotiation?
  2. What are the four questions that will reduce prices instantly?
  3. Can you show me proof of your sales at or above the asking price?
The focus shouldn’t be on the reserve, because as we all know the reserve is the LOWEST the owners are willing to accept, the asking price is what they are HAPPY to accept. Many agents boast sales “above the reserve.” BIG DEAL. What that really represents is that it was priced at WHOLESALE and they sold it for RETAIL.  Go ahead… impress me, sell it above retail.
  1. Mystery shop the agents over the phone and ask this question.
E.g. “You are asking $700,000 for this home how much will they take?”  Then be silent and listen for what comes next. Good chance you’ll get something like;

Agent:  “The vendors would consider high $600′s”

Buyer:  “Would $660 buy it?”

Agent:   “No, No more like $680 ish”

By not holding firm on the asking price, the agent just cost the owner $20,000 over the phone.  Similar to the medical profession where we have a choice between General Practitioners and Specialist Surgeons, always make sure you engage a specialist of negotiation when selling.

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