Stop Losing Deals Because of Poor Negotiating
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Learning how to stop losing deals because of poor negotiating skills is critical to success. Losing deals during negotiation with clients usually comes down to one of two reasons. You either couldn’t agree on a price with the potential buyer, or you have a poor negotiating strategy.
Either way, these two reasons go hand-in-hand. Most of the time, we reduce the process of negotiation down to a price agreement. You can get them to settle for your offer, or you can get a certain number to a certain place that both can agree with.
However, things would go much better if no one took positions on numbers and instead considered looking at why multiple numbers exist. Seeing it from different perspectives can sway potential buyers. Here are some ways to improve your negotiating strategy.
Avoid Overlooking Other Contract Details
Most people have tunnel vision when it comes to a property’s price. However, there is a lot more to a deal than a price. Many agents say that when a deal falls through,it’s either the seller’s or the buyer’s fault. They just wouldn’t come up with a price or go down on their price. In reality, 90% of the fault is on the agent while the rest is on the client.
When you don’t get caught up in agreeing to a price, you’ll discover that the contract will have other terms and conditions that present unique battles that you could potentially win. In the end, these would be more beneficial than just the price. Considering the other details may push one side to cave into the price because they discover — through your help — that it works out for them.
Stay Calm and Be the Grounding Force in a Deal
Clients tend to have a mindset that winning is about getting the other party to agree to their terms. Likewise, they think they lose if they’re the ones who fold. All these emotions run through clients, and it’s your responsibility as the agent to be the logical one during the confusion.
Tough deals will still make anyone emotional, but you must rise above the situation. Strive to have clients buy into your logic as the agent, instead of letting buyers and sellers fight each other.
Understand What the Client Wants To Accomplish
Ask plenty of questions about what your client wants to accomplish with the deal that they’re getting into, so you understand their perspective. That way, their actions would make sense. For instance, they might want to go down $500. You could present that that action would kill the deal, so they reconsider their intentions and if they are serious about buying.
Step up to confront clients about these things. In addition, you must ask the right questions. You might discover why they want to do what they insist on doing even though it makes a deal fail. Perhaps they want to close by a certain date to avoid losing more money.
Final Words: Understanding Is the Key To Stop Losing Deals Because of Poor Negotiating
As agents, you must understand where your clients are coming from, so you can successfully close a deal. While their decisions may seem illogical to you, remember that they know what they want to achieve, and it’s logical to them.
It’s crucial to ask the right questions and discover why clients want to go in a certain direction. When you feel that a party is being unreasonable, think critically and consider that you’re disconnected from their reasons.