When the pandemic exploded, realtors all over the US were forced to adjust. They needed…
The Buyer Agent Search Network that serves Denver Colorado and other communities throughout the United states, posted a rebroadcast of it’s KHOW radio segment, along with several informational videos this week. These resources help first-time homebuyers know vital information about home buying process such as real estate home buyers checklists, how do buyer agent gets paid, duties and responsibilities of buyer agents, etc. One of the duties mentioned in the article is, buyer agents are responsible for properly advising consumers on housing price and other negotiating options. Do buyers need the buyer agent’s negotiating skills? What are the techniques and tips to a successful negotiation?
Top 4 Negotiation Skills of Buyer Agents
Negotiating a deal can be one of the most intimidating skills to learn. It’s a skill that cannot be easily found on the internet. Here are some of the most importance skills consumers should look for in a top agent:
- Buyer representation – In a home-buying process, the buyer agent handles the negotiation and presentation of the offer to the seller on behalf of the buyer. This is something that buyers can’t do on their own. Negotiating requires extensive knowledge and other skills gained from experience over a period of time.
- Buyer Protection – The buyer agent’s negotiating skills are important to ensure the buyer will get the best terms and price of the home. Buyer agents perform comparative ( aka competitive) marketing analyses (CMAs), in which they evaluate the prices of similar properties in the same area recently sold. They provide home assessments based on factual comparable information that determines the price to offer to the seller. It will help buyers refrain from buying overpriced homes.
- Market knowledge – An agent won’t be able to negotiate effectively if he/she doesn’t have a comprehensive knowledge of the market. That’s why a price point evaluation or CMA is important, so the agents will be equipped and can conclude deals successfully. Agents who know the market well can easily provide a wide range of choices based on the buyers’ needs and preferences. This includes knowledge of current market trends and the properties available in the market.
- Comprehension of the buyer’s needs – To negotiate effectively, the agent should also have a clear understanding of the buyer’s needs and preferences. This will help the agent negotiate better on behalf of the buyer. This essential information includes:
- The buyer’s motivation and reason for buying
- The buyer’s readiness and willingness to transact
- The buyer’s time frame
- The buyer’s financial capabilities
Listen to the radio show here:
Negotiation Techniques to Land a Better Deal
In any business, the goal is to create a win-win relationship with the other side. The key is to listen to the other party and discover how to help with the solution to their “problem.” If an agent can solve a problem and add value to the other side, it will reap benefits. Here are some keys and techniques when negotiating.
- Show a positive attitude – The attitude that the agent will show can determine the success of a negotiation. Be polite, courteous and confident. Remaining calm and respectful often achieve a positive outcome for both parties. Of course, nobody would want to negotiate with someone who is aggressive and disrespectful. It will show a lack of professionalism and incompetence. It is crucial to have an agent who is sharp but has an engaging and friendly manner.
- Create rapport – People like to do business with people they like and respect. If an agent can build rapport and can communicate well, it will make the other party feel that both parties are “working together” as opposed to “competing with each other”. Once a harmonious relationship has been established, coming to terms with an offer will just be easy.
- Listen to other party’s needs and requirements – As mentioned above, effective communication is vital in any negotiation. Being an effective communicator is tantamount to being a good listener, too. Good negotiators ask probing questions, listen, and take notes. They are not afraid to ask open-ended and explanatory questions. The other party will often tell disclose many things the agent needs to know to assist their buyer. This will help both parties meet halfway and bring them together to create a result.
- Be realistic – A good negotiator is always practical in his/her approach. Don’t ask for illogical and impossible terms. Know when and where to compromise. Sometimes people need to compromise to be able to come with an a mutually acceptable contract. If there are some seller terms and conditions that are important to the seller, but not really that substantial, it is often a good idea to compromise in the seller’s direction assuming their demands are reasonable.
- Perform research – Understanding both sides of the process will help the buyer agent counsel his or her client. It is important for an agent to have an in depth knowledge of the buyer’s wants and needs. Doing research will help the agent know the underlying situation and motivation for each party. This can make a huge difference in how he/she will present and plan the offer. These are a few simple questions an agent should consider for both parties:
- What are my client’s needs and requirements?
- What are my client’s options?
- Why the seller is selling and why the buyer is buying?
- What are the non-negotiable points?
- What is a win-win solution for both parties?
- What personalities am I dealing with?
- How many offers have been considered?
Finding the right buyer agent
With lots of available resources throughout the internet, magazine, newspaper, etc. how will buyers find and determine the right agent? “A buyer needs a good agent and a good agent needs a good buyer.” Kathleen Chiras said. Buyers need buyer agents that will protect them and represent them well throughout the home-buying process.
Chiras, CEO of Skyfor’s Buyer Agent Search service has helped consumers shop for top agents for the past 20 years. She gives personal consultations along with recommendations of highly qualified buyer agents anywhere in the United States, Canada, and Costa Rica. Their national association of buyer agents has top-rated and reviewed agents. Several recommendations are provided, and the staff will track the relationship ensure agents are doing the job that the clients expect.
Consumers may go to this page in the Buyer Agent Search site to start shopping for top agents. The headquarters office of Skyfor’s Buyer Agent Search program is staffed 7 days a week. It is best for the individuals to call to discuss the best strategies for the selection of a top buyer’s or seller’s real estate agent.