A Skilled Negotiator is the Key to Unlock the Best Real Estate Sale

According to the National Association of REALTORS® (NAR), 80% of buyers reported their agent’s negotiation skills were very important during their transaction. In addition, nearly 80% were satisfied with their REALTOR’s negotiation expertise.

“Given the many complex aspects of a real estate transaction, it’s critical to have a skilled REALTOR helping to get the best possible outcome,” says Angela Walters, former board chair for the Greater Milwaukee Association of REALTORS (GMAR). “The need for an experienced negotiator is heightened by today’s constantly changing market conditions.”

How Negotiation Works

According to Tom

McCormick, a broker with Exit Realty Horizons, buying or selling a home is typically the largest investment and most emotional decision ever made in a person’s life. “Buyers don’t want to overpay and sellers don’t want to leave money on the table,” says McCormick. “With so many moving parts in a real estate transaction, keeping the end goal in mind is essential.”

Both buyers and sellers benefit from skilled negotiators during a sale. “Buyers rely on their agent’s market knowledge to help determine market value and a fair offer price, and to negotiate acceptable terms that will ultimately get them the home,” says John Horning, a broker with Shorewest Realtors. “Once an accepted offer is achieved, agents negotiate requirements of the offer, such as financing, appraisal, inspection, tax prorations, title and deed restrictions, to name a few.”

Common contingencies:

• Appraisal

• Home inspection

• Financing

After an accepted offer, agents work through the details to achieve a successful closing on time, including:

• Closing costs

• Closing date

• Home warranty

• Leaseback

• Home repairs

• Furniture

• Appliances

• Condo/co-op assessments

Finding a Skilled Negotiator

Successful negotiators have a track record for getting the best outcomes for their clients. “The best way to find a great negotiator is to inquire about the results they’ve attained for their clients and the amount of repeat and referral business they receive,” says Horning.

Assessing an agent’s communication style and listening skills at the beginning is another great way to evaluate whether an agent has what it takes, according to McCormick. “An active listener who also asks great questions will be in the best position to understand motivations and set expectations up front,” he says. “Someone with proven communication skills prevents misunderstandings that can surface later.”

An experienced REALTOR always keeps the end goal in mind.

“They’re willing to fight for the client but also can explain when and which concessions may be needed to achieve success,” says Horning. “In addition, negotiations can sometimes be stressful. An objective representative will help keep emotions in check.”

Knowing when to fight and when to make a concession to ultimately win for their client is a specialized skill. Often parties get lost in their desire to win. A practiced REALTOR doesn’t fall into this trap. “A good negotiator stays objective and doesn’t let the parties’ emotions get in the way,” says McCormick.

If the parties and their agents lose focus on the ultimate goal – a successful closing – negotiations can break down, resulting in no closing at all and both parties losing. The buyer will have to start again with a new home search and the seller will need to put their home back on the market.

Training Provides Added Expertise

REALTORS adhere to legally mandated duties and responsibilities. They’re obligated to present clients with all proposals in an objective manner and negotiate on their behalf.

To assist REALTORS, the NAR provides a wide range of programs and services that help members increase their skills, proficiency and knowledge in various real estate sectors. The Real Estate Negotiation Expert (RENE) certification delivers specialized training to help REALTORS excel at negotiation by giving them the insight and tools they need to be skillful advocates for their clients.

The RENE designation indicates a REALTOR has honed negotiation skills to meet a wide range of variables. These include learning how to handle competing objectives of the parties involved, navigating a wide range of personalities and understanding the behind-the-scenes issues that can happen during a transaction.

Negotiations have a significant impact on a real estate transaction. A skilled negotiator is the best way to reach a deal that’s optimal for both sides of the sale.

The Greater Milwaukee Association of REALTORS is a 5,500-member strong professional organization dedicated to providing information, services and products to help Realtors help their clients buy and sell real estate. Visit gmar. com for more information.