Many commercial real estate brokerage, sales, or leasing situations involve negotiation. Consider the various stages of working with clients and listings.
You are negotiating your way through the stages of the real estate business, from a prospective phone call to a meeting and then to a property inspection. You make friends and share important information about the local real estate market.
Refine and Practice
It stands to reason that your focus on the real estate market and economic pressures will help you identify which negotiation factors require refinement and practice. You can change your negotiation skills as the real estate market changes. Learn the skills needed for today’s predictable real estate market and listing situations.
Your ability to improve your negotiation skills will benefit your listing and marketing efforts. That is something you should concentrate on as a local real estate agent.
Stages of Negotiation
Here are some stages of negotiation that you can start practicing right now:
- Making calls to find people interested in commercial real estate sales or leasing now or in the future.
- Seeking to meet with particular people, property investors, owners, or business leaders.
- To present your listing ideas, share market information, pricing, and rental figures.
- Taking people through listed properties to encourage offers and comments about the listing.
Given these ideas, you can build a negotiation toolkit where you can draw on particular real estate tools, topics, photos, or charts to support your listing activity. Try out these ideas:
1. Market Knowledge and Facts
Collect facts about the market and trends in enquiries and deals based on your location and property types on a regular basis. You can easily accomplish this by subscribing to online newspapers and media releases.
When something relevant to your location is posted or published, you can print or copy the article into your preferred note-taking system. Then, for each article found, apply a set of keywords so you can refer to it during a client conversation, meeting, or listing presentation.
Notetaking systems like Evernote or Google Keep are useful tools for the process because they are easily accessible on your phone and computer for data collection and sourcing.
2. Effective Communications
At different times, the real estate market favours sellers, buyers, tenants, and landlords. As an agent, you must deal with market pressures and changes while negotiating with your clients and third parties involved in a transaction or listing.
The state of the local business economy directly impacts how those interested in real estate will respond, negotiate, and research properties. As a result, you must be an excellent negotiator and communicator. With market facts and conditions, that skill base can be honed and shaped.
3. Creative Problem Solving
Consider your local real estate market and whether it is skewed towards the seller or the buyer. Each party will have predetermined success goals and budgets. You must be current on market conditions, trends, and negotiation outcomes.
Given the economic circumstances of the location and the property type, the parties to the property transaction must be prepared for the realities of negotiating a property sale today. You can constantly gather real estate market evidence as a real estate agent to solve today’s sale property problems.
Graphs and photographs are great visual aids for familiarising parties with the realities of pricing and marketing trends in each location.
4. Improving Negotiation Skills
What are some of the most common issues you encounter with clients and prospects given the current state of the real estate market?
You can plan for these problems and work through the common ones. You can practice dealing with problems daily. Commercial real estate agents are constantly confronted with everyday situations and challenges.
We can always professionally practice, refine, and renew our responses on that basis. We can consistently outperform or be smarter than those we are negotiating with.
Remember who your client is and what they anticipate from you. Their instructions must be followed and respected. If the client is too unrealistic, you can cancel the listing. There is no point in wasting valuable brokerage time in today’s real estate market.
5. Financial Analysis and Acumen
Assessing and analysing the income streams and potential income from a property listing is a skill that can be learned.
You begin to see the investment problems at the point of listing, and thus, you can ask many questions and make recommendations.
Before marketing and listing, determine whether any flaws in the property income stream need to be addressed or resolved.
6. Legal Knowledge and Standards
This is due primarily to the ability of agents to accurately capture the parties’ intentions in a transaction and then reflect everything in a legally binding document.
Finance, timing, subject-to-clauses, property and improvement descriptions, and settlement arrangements are all taken into account.
The legal aspects of the real estate market and transactions are constantly changing, so stay up-to-date on what is going on with laws and regulations in your area and across property types.
7. Agent Time Management
You have a lot to do every day when you have a lot of listings. With the inquiries that keep coming in, you’ll be kept busy in a variety of ways.
So, there is a fundamental rule to consider here. You cannot control every aspect of your real estate day, but you can control 50% of it. This allows you to spend most of your time prospecting and finding people, properties, and listings.
That aspect of your company’s growth is critical to where you’re going and how you’ll get the job done. This is known as the 50:50 rule, and I recommend that all agents have a daily plan or diary procedure in place to apply this basic rule.
Those struggling in the industry have no control over their days or business directions. Your time as an agent is valuable; use it wisely. Control your working day and week.
8. Agent Adaptability and Resilience
While it is the last item on the list, it is the most important because the real estate market is always changing and we must adapt throughout the year.
We can’t change the real estate market or people, but we can change how we interact with them and deal with issues like selling, leasing, and buying to better serve our clients and prospects. Recognize that things can and usually will go wrong or be delayed in real estate.
Control things as you work with your real estate business’s critical people, properties, and transactions. Take copious notes and ensure that your transaction progress plans are effective, legal, and accurate, given the realities of each property and transaction.
As a result, these facts or strategies can serve as the foundation of your negotiation toolbox. Given your location and property specialities, you can change with the property market.
Negotiation from a position of experience, knowledge, and market awareness is always effective. As a result, you can advance to the top levels as a real estate agent in your area.