If it may not seem very important or it may not have even crossed your mind, you may want to think again. When it comes to leaving money on the table, if you’re selling, or paying to high, if you’re buying, you need to consider if your agent is strong in the negotiation area.
In Houston’s Real Estate market, it takes a strong agent who will take the time and work through a deal for a client that is reflective of our economy and the supply and demand factors that are affecting Houston’s market.
I see agents listing and selling homes 25% too low. When I ask the owner why they listed at that price, I get the standard answer, ” because my agent is a top producer and he/she said that is what the comps are.” There is a huge flaw in this response. Either the agent is not looking at the bigger picture or he/she is a top producer for the wrong reasons.
It is a necessity knowing what is happening in our economy, as well as understanding the local, regional and national Real Estate market. It is better to over price and be aware, than under price and lose out. When you are involved with a transaction, you will come to an understanding of the needs of both clients. This is how you decide which negotiation skills you will use. If I see the other agent is inexperienced in negotiations, (this has NOTHING to do with how long the agent has been licensed) I know it is to my client’s advantage. I see very few agents who actually take the time to work through a deal. Either the agent doesn’t know or is intimidated and doesn’t look at other angles for the client.
When I see an agent using tactics that are not “negotiation skills,” I will not participate. I know that standing firm is the best case scenario for that type of situation. Sometimes there is no winning situation for either party if an agent is less likely to negotiated or doesn’t know an artful way to. Typically, the stronger negotiator’s party gets what they ask for in a deal, because of the lack of negotiating by the other party.
Being ruthless is not part of negotiations. Being fair, truthful and laying out your point, is the best way to get what you want in a deal. Negotiating is a business game board. Either you’re in or you’re out. Hopefully, you have chosen an agent who knows how to play.
by Michele Marano 713-899-8420
Champions Real Estate