Things are changing in real estate—and change can be a good thing. Commission structures and requirements might be a little different, but with that change comes more transparency, and the opportunity to master new techniques for negotiating with clients and new strategies for winning.
Why negotiation matters for your agent business
Because recent changes present new chances for clients to negotiate, it’s important to have your own tools under your belt—so you can demonstrate your value, reach favorable agreements, and get your clients what they’re looking for.
9 steps to win business and negotiate commissions
1. Understand your market.
“When the market is great, that’s all you need. But when the market is bad, you need to sell more than just the product—you need to sell the story.”
–Ryan Serhant
Your market tells a unique story, and being able to convey that story to a client is a powerful advantage. Look to understand current conditions, property values, average days on market, and more—because by informing clients about what’s happening in their local area, packaged up in an easy-to-understand way, you can win their confidence and the deal.
Pro tip: Cloud CMA can help you understand and share insights like this with clients in a clear, compelling package. Learn more here.
2. Understand motivations on both sides.
When you’re talking with clients, as well as the other party, listen carefully and read between the lines. Listen for their needs and motivations—like a seller who needs to pull enough from a sale for their next home, or a buyer who’s running on a tight budget to afford their first home—because this will give you angles to help frame your offers and counteroffers in a persuasive way.
Pro tip: Communication tactics like active listening come in handy here. As you’re talking to your client, practice watching their non-verbal cues (like if they perk up at the mention of a particular listing or offer), hearing them out before you plan your next statement, and asking clarifying questions.
3. Focus on rapport.
“People want to spend their money with the most confident and most knowledgeable person, otherwise they will just stay home and shop on the internet.”
–Ryan Serhant
Establishing trust and positive relationships with your client builds their confidence in you—which can lead to more open and constructive discussions throughout the purchase or sale process.
Pro tip: This is a great time to showcase your client testimonials from previous deals. Rather than just focusing on what the client said, take your current client through the entire process—highlight challenges you faced, show how you overcame them, and explain any steps you took to negotiate the best deal possible.
4. Be flexible in your solutions.
“Never forget that while you’re a salesperson, you are also in the service business—and sometimes that means being flexible and playing by someone else’s rules.”
–Ryan Serhant
Sometimes, negotiations take flexibility. Offering alternative terms can make the negotiation process easier on both sides, and can be especially effective at breaking down stalemates.
Pro tip: Before you start viewing properties, sit down with your client and make a list of their non-negotiable terms. This will give you an idea of where there can be some wiggle room down the road.
5. Prioritize the property.
“Steve Jobs said it best: ‘People don’t know what they want until you show it to them.”
–Ryan Serhant
Every agent has been there. You take your client to see dozens of homes, and even though you’ve figured out what they’re looking for and read between the lines, nothing is just right. If this happens, take a step back and check in on what the client is looking for, because sometimes that shifts over time as they see more homes.
Be active in collecting their feedback after each listing, whether they saw it online or in person. This will show them you’re invested in their search and prove the value of your pricing and terms.
Pro tip: Set your client up with real-time MLS listing alerts and encourage them to share their feedback with you. Once you’ve found a few homes, check in again after viewing so you can shift with them as their needs change—and so you can get them to their dream home faster.
6. Focus on the facts.
Sharing hard evidence about the property—like appraisals, inspections, or market data—backs up your stance and strengthens your ability to negotiate.
As a real estate agent, you have access to information that consumers don’t, like market statistics on competitive offers and sale prices, days on market, and sold price to list price comparisons—all of which can guide sellers and buyers alike in what’s reasonable to expect.
7. Be patient, professional, and stay cool.
Real estate negotiations can take time, and often involve a few rounds of back and forth. Exercising patience and maintaining a cool, professional demeanor can lead to better outcomes for you and your client. It also helps you build a positive network among your agent peers, who you’ll likely run into and do business with again.
Pro tip: Connect comes with built-in communication tools that can help you and your clients—and the other side, too—stay in touch throughout negotiations. Learn more here.
8. Look for ways that everyone wins.
Negotiations don’t have to be an us-versus-them situation. Look for ways to set up mutually beneficial agreements that can help you move through negotiations faster—and set you up for better long-term relationships with your peers and prospects.
9. Know when to step away.
Not every offer or listing you make is going to close, especially on the first try. When negotiations grind to a halt because your client won’t get what they want, it’s okay for both of you to walk away from that deal.
Before you do, make sure you’ve exhausted every option to get your client the best deal. That could be working with the client on reduced closing costs, or it could be shortened escrow for the other side—but whatever you try, your clients will appreciate that you looked for every possibility.
Head into your next negotiation with confidence.
From working with market insights and lead generation to methods for communication and everything in between, find resources for all your questions today in our buyer’s agent club.
