Negotiation skills are essential for success in real estate sales. Incredibly, almost unbelievably, most real salespeople have never studied negotiation.
Research shows that less than 5 percent of real estate salespeople have read a book on negotiation. This is disgraceful! Throughout the world, home sellers are losing millions of dollars because their trusted representatives refuse to develop their negotiation skills.
If an agent sells a property for anything less than the buyer could have, would have, or should have paid, then the agent has failed the client.
Anyone selling a property can put an advertisement on the Internet or arrange a sign to attract buyers, but the area most people struggle with is negotiation. Unless your agent can display superior negotiation skills then all you’ve hired is an overpriced advertising representative.
Here are some excellent questions you should ask any agent that you are considering appointing to sell your property:
- How many books have you read on negotiation in the past year?
- What are the four questions that will reduce prices instantly? **
- Will you show me proof of your sales results, where you have achieved either full asking price, or above?
If an agent is talking auction to you, be careful not to confuse the Reserve Price, which is the LOWEST price the owners are willing to accept, with a price the sellers were HAPPY to accept. There is often a big difference. The reserve price is a wholesale price.
Mystery-shop agents over the phone and ask this question: “You have a property listed for [example $700,000]. How much will they take?” Be silent and listen for what comes next. There is a good chance the agent will reply with something like, “The vendors would consider high $600’s.”
Would you want the agent in this example working for you? He or she is already talking down the price the sellers hope to get, without ever meeting the ‘buyer’ to determine the most he or she will pay.
Always make sure that you hire a good negotiator. All agents are NOT trained the same. Make sure that you find somebody who went to the effort, and expense, to study his or her craft.