Negotiating in real estate really isn’t that complicated.  I referred to this in my Real Estate Negotiations post some time ago.  And as we move forward, I believe that much of negotiating can be accomplished through questions.  And silence.  And a win-win approach.

Couple and real estate agent discussing together at home

Let’s start with win-win.  What does that really mean?  Well, in my mind it means coming at the real estate transaction as something that will benefit the buyer, seller and, by extension, the real estate agents involved.  The negotiations are about finding the key “wins” that each party needs to have to move forward.  For sellers it can be price…and many times price is the determinate factor.  Although for sellers it can also be timing or something more emotionally based.

For buyers I’d like to argue that emotion plays almost as big a factor as price.  Is this the home that they see their kids growing up in?  Is it the house where they want to spend their retirement years?  Is the yard perfect?  Location?  Does it remind them of grandma’s house? Heck, even for investors there is emotion of a different kind.  Is this a house that will help them secure their “retirement worth having”?

How do you know the answers to these questions whether you are negotiating for the buyer or the seller?  Well, you listen intently.  And you ask questions.

Buyer Questions

• Tell me, what is it about this home that you really love?
• Based on the other houses you are considering, what draws you to this home?
• What would you change about this home if you could?
• Whose room is whose? (When kids are involved.)

Seller Questions

• Why are we selling?
• When does this need to be accomplished?
• What will moving accomplish for you?
• What is most important to as we sell your house? (Price? Timing? Buyer qualification?)

PRO TIP: Did you notice that with the buyers I am using the term “home” and when with sellers I am using the term “house”?

Lastly the win-win means working as a professional real estate agent negotiating on behalf of your respective client.  Through cooperation with the co-op agent you can create an environment of mutual benefit.  Otherwise, either by choice or poor communication or lack of fiduciary integrity.  Remember, negotiations are not about how much or when you will get paid.  Negotiations are about helping your client get what they want.

For instance, your seller may say it is all about price…but they have to be in Washington, DC with their family 90 days from now.  And being overpriced will only add tension to that timeline or worse, being overpriced may cost them the payment of two mortgages…the one here and the new one there.  It’s our job to determine motivation.  Motivation leads to why people will act.  And determining motivation comes through asking the right questions so that you can help them “win” their real estate negotiations.