Effective Negotiation Tactics for Property Buyers Agents

Looking to close more deals for your investment property clients?

Negotiation is the differentiator between average and top-tier buyers agents. Whether you’re negotiating a new investment property or your buyer’s next family home, the way you haggle over price directly impacts how much your client saves.

The issue…

The majority of buyers agents see negotiation as simply persuading the other party to pay less. But great negotiation is much more than that. It’s a dance that includes timing, psychology and reading the room.

In this buyer’s agent negotiation guide, you’ll discover the proven tactics used by top buyers agents to close deals.

Negotiation tactics in this article include:

• Pre-negotiation research and planning
• Read seller’s motivation
• Strategic Concessions
• Emotional intelligence
• Knowing when to walk away

Why negotiation matters for Buyers Agents

If you find investment property buyers agents that have great negotiation skills, you’re ahead of the game already. The best investment property buyers agent recognizes that every dollar they can save their client directly adds to their client’s ROI.

The truth is…..

According to recent data, 89% of homebuyers use a real estate agent during the process. But most importantly, buyers aged 34-43 were most looking for assistance with negotiations.

This means your clients trust you to be their advocate at the negotiation table. Without the ability to negotiate great deals, you’re missing an opportunity to save your client’s money. And in the cutthroat world of investment property, you can’t afford that.

Research and Planning

This is a must before entering into negotiations with a seller.

It’s what most buyers’ agents get wrong. They go into negotiations without first conducting proper due diligence. Some research is key before even putting a property offer on the table.

Things to research and keep handy when making an offer include:

• Recent comparable sales in the local area
• State of the market (buyer’s or seller’s market)
• Property Ownership history and motivation to sell
• Days on market of the target property

The more you know the better position you are in to negotiate a great deal. You can’t make stuff up during a negotiation – have the data on your side to back up your position.

Understand seller’s motivation

This is one of the most important negotiation tactics.

If you can find out why someone is selling, you have a massive advantage.

There are many reasons why someone is selling a property. It could be a relocation for work, a divorce, financial pressure, or a desire to downsize.

Ask questions about the property to learn about the seller’s motivation. Be subtle, not invasive.

Example questions:

• How long have you owned the property?
• What attracted you to the property when you bought?
• Are you looking for a quick settlement?
• Do you have any emotional attachment to the property?

Asking the right questions will uncover the motivation to sell. Once you know why they’re selling, it makes it easier to address those motivations in your offer. If a seller wants a quick settlement, maybe you shorten your inspection period. If a seller is attached to the property and history, highlight how your client will take good care of it.

Use Strategic Concessions

This is another key tactic.

Great negotiators know it’s not about getting everything your way. It’s also about giving a little, in order to get a lot.

According to industry research, 58% of buyers believe real estate agent commissions are worth paying, considering the service they provide. Buyers are looking for agents who deliver value, and negotiation is a big part of that.

Strategic concessions involve giving something small that means a lot to the other party. It’s a small price to pay in return for building goodwill and getting them to agree to your more important requests.

Examples of strategic concessions:

• Accept a flexible settlement if that is what you need most.
• Leave some furniture or appliances the seller wants
• Agree to a reduced inspection period
• Offer a higher deposit to show financial strength

The trick with concessions is to make sure they don’t sacrifice anything important to your client. Know your client’s bottom line and be willing to stand your ground on that. When you do concede, always do so in return for something else. Negotiation is a give and take process. If you concede, the other party should concede back. You can’t just give stuff away.

Control your emotions (And read theirs)

Possibly one of the most underrated skills in negotiation.

Buying and selling property is an emotional experience. Sellers are letting go of a property they own. Buyers are taking on a major purchase. Emotions are high.

As a professional in the room, you need to be the rock of logic.

Staying calm helps you make better decisions and keeps the negotiations on track. A cool head also allows you to read the room better, and notice emotional reactions in the other party.

If the seller’s agent gets frustrated, you may have more wiggle room on your offer. If the seller’s agent gets defensive, you might need to soften your offer to salvage a deal.

Top buyers agents view negotiation as a strategic game of chess. There are several moves ahead and emotion never gets in the way of decisions.

Know when to walk away

One of the biggest secrets to great negotiation…

If the other party know you’ll take any deal just to close, they have no incentive to be flexible with you. But if you show you’re willing to walk away, they may become more willing to budge.

The only way you can walk away is if you’re actually willing to walk away. If they can tell you’re bluffing, it’s not a bluff.

The best negotiators are always negotiating from a position of strength. They have plenty of other options and don’t rely on any one deal. If you’re offering on a property, make sure you have plenty of other properties that would suit your client if this one falls through.

Build rapport with the other agent

One of my favorite tactics…

Negotiation is never just about you and the seller’s agent. You are also building a working relationship with the other agent. Treat them with respect and professionalism. It will pay off during the negotiation process.

When you’re pleasant and respectful to the other agent, they’re more likely to advocate on your behalf with their client. And they may give you insight into their client’s true motivations.

Simple ways to build rapport:

• Return calls and emails promptly
• Be honest and transparent with your situation
• Acknowledge positives about the property

Remember this is never an excuse to be soft on the deal. You can be as tough as you like on the negotiation table. The key is to be nice to the people you’re working with.

Negotiation Tactics Summary

Mastering negotiation as an investment property buyers agent takes time and practice. These tactics will improve your results over time:

• Comprehensive pre-negotiation research
• Read seller’s motivation to structure offers
• Strategic concessions
• Control emotions and read the other party
• Willingness to walk away

Every negotiation is an opportunity to learn and improve. No single negotiation will make you a master negotiator. But the more you do it, the more your skills will compound.

Remember, 61% of homebuyers said the biggest benefit their agent provided was help understanding the process. Close behind that was the negotiation of better terms.

Your clients expect you to deliver when it comes to negotiation. Use these tactics and you will close more deals and save your clients money.