Negotiation: Why Agents fail to get good deals for clients

Negotiation and Business

Posted  179 Views updated 9 months ago

One of the responsibilities of a real estate agent is acting as a negotiator for his client who in this case may be the buyer or the seller and in some cases both. Good negotiators find ways to ensure that both interests of sellers and buyers are protected in the deals. Negotiation involves the action or process in transferring ownership to another in legal terms and it is mainly a discussion aimed at reaching an agreement between two or three parties.

In real estate practices in Nigeria, you find out that most of the estate agents are novices when it comes to negotiating deals. The simple reason is that they do not know that negotiation is part of their duty and in cases where they know they do not have the skills to handle negotiations.  It is a sad thing to note that most of the realtors and estate surveyors do not really possess the techniques of negotiation. In the higher institutions where Estate management is taught, negotiation is not a part of the curriculum and even when the students go for their compulsory industrial training or graduates working in real estate firms they are not exposed to negotiation discussions.  What most of the agents are concerned about is the price because that is what will either raise or lower his agency fees.

A skillful agent will never narrow down negotiations to one issue –Price because this allows for one winner and one loser versus both

In order to be good at negotiation, it is advisable that estate agents go for trainings related to negotiations and indulge more in discussions related to it. Here are some tips that would help agents negotiate better:

1.     Information gathering is very important for the agent. Ask questions to understand the primary objectives and goals of the buyers and sellers.

2.     Avoid nibbling by buyers- Nibbling is a strategy where the buyer tries to reduce the price by asking for some unnecessary improvements to be done on the property. Stand your ground.

3.     Never allow a buyer pressurize you into holding up a deal because he is facing one financial problem or the other thereby wasting your time. It is important you know early enough if the buyer actually qualifies to buy your property.

4.     Most buyers when they want to purchase a property come with some requests of their own. Play the role of the Good guy, let the seller be the bad guy. Accept about one or two of his requests and makes him think that there is actually someone on his side.

Good negotiation helps you to become a sought after agent if done well because good mouth advertisement will go a long way in bringing more businesses to you.

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