Why Negotiation Skills Matter
Oct 18, 2016 | Realtor Resources | Share:
Guest blog: Mike L. Everett, Certified Instructor, The Real Estate Negotiation Institute
In a recent National Association of Realtors (NAR) survey, 99 percent of buyers believe negotiation skills are important in their real estate agent. And less than half believed their agents negotiated better contract terms or a better price. Negotiations is the number one, identified skill consumers are looking for in realtors!
What we learn from that knowledge is the ability to successfully negotiate in a real estate transaction, while not lost on the consumer, is one of the greatest training needs for realtors nationwide.
Every year, corporations spend hundreds of millions of dollars worldwide training employees to negotiate in order to get the best results on behalf of the company and shareholders. They view this training as imperative for the protection of their interests. Typically, realtors don’t have a corporate structure that mandates and invests in their training, so it is up to us to recognize the need and act upon it. But the same drivers that motivate corporations to invest in negotiation skill training exist for the Realtor – results on behalf of, and protection for, our clients.
Most agents and clients look at price as the primary point where negotiations occur in the real estate transaction. The truth, however, is much different. When we first contact a potential client, we start negotiating. We set up the first appointment and negotiate on time, place and content for the meeting. Our search strategy, or our marketing strategy, is negotiated based on a good understanding of our client’s needs. Once an offer is made we normally see one or more counter offers that need to be adjusted to successfully get a contract. And from there it is a series of negotiated items including price, closing date, repairs, exclusions, title company…the list goes on!
Understanding how to properly position our clients so that we negotiate from a position of strength and successfully meet their expectations is no small task. It requires preparation, information gathering, communication, persuasion, and elements of psychology to achieve the best results. Major universities, such as Harvard and The Wharton School of Business, have entire departments devoted to the art and science of negotiation.
The Real Estate Negotiation Institute takes the same negotiation strategies, techniques, and skills that are taught at these “negotiation think tanks”, and we teach agents how to apply them specifically to the real estate transaction. The CNE designation is one of the most popular designations nationwide because agents who have completed the training report significantly greater results in their business and greater satisfaction from their clients! In addition, the knowledge acquired gives them a foundation for on-going learning that will continue to produce great results not only in real estate, but in life in general.
The ability to successfully negotiate is a life skill that will pay dividends professionally and personally for years to come!