Man and woman shaking hands, representing negotiation in real estate sales.

The Importance of Real Estate Negotiation Skills

It’s no secret that real estate is a transaction-based business. We are helping our clients buy and sell homes. Many important details need to be facilitated to make this happen, in addition to the guidance we are providing our clients along the way to help them make sound decisions. There are financial, emotional and practical aspects to consider each step of the way. Being able to juggle all of these elements successfully is what being a good real estate professional is all about.

The Power of Negotiation

One of the most important services we offer is one that is also often overlooked: negotiation. You should be looking for strong negotiation skills when hiring a Realtor® to represent your home purchase or sale. It’s also important to find someone you like and who you feel comfortable working with. Having a strong negotiator on your side will benefit you even more from a financial perspective. They can save you money on a home purchase or make you more money when selling your property.

Many people think it’s easy to sell a house, especially when market conditions are strong for sellers. Right now is a challenging real estate market for both buyers and sellers. A lot of negotiating is happening to get deals done. Sellers who go “for sale by owner” often learn the hard way how important it is to have strong negotiation skills. Their houses sit on the market longer than they should. In the end, they don’t get as much money for their properties as they hoped. Unless you’ve bought and sold several properties in the past, you should strongly reconsider any attempt sell a property on your own. In most cases, the only buyers you will attract will be real estate investors making lowball cash offers.

Hiring an experienced and skilled real estate agent will generally pay for itself. You get more marketing resources. You get a trusted advisor to help you make important decisions. And ideally, you get a strong negotiator helping you get the most out of your side of the transaction. Below are some examples of how good negotiation skills will benefit you as a buyer or seller.

Negotiating for Home Buyers

Obviously, your primary goals as a real estate buyer are finding a home that suits your housing needs and getting it for the lowest possible price. A real estate agent who is a skilled negotiator will help you know what to look for when previewing properties. Any issues with the house can be used as leveraged when making an offer.

In addition, your financial standing can also be a powerful negotiating tool. Being pre-approved for a mortgage loan or putting down more cash as a down payment will make you look like a better buyer. Sellers want to work with someone who presents less risk. They don’t want the transaction falling through because the loan is not approved or some other issue arises. Everything your agent knows about you and the property you are looking to buy can be utilized in the offer and negotiation stages. This includes post-contract negotiations. Home inspections often reveal problems that were previously unknown to the buyer, which may require seller credits or concessions before the deal can be finalized.

Negotiating for Home Sellers

On the other end of the table is the real estate agent working on the home seller’s behalf. They are there to protect the seller’s best interests and get the best possible offer on the property. The best offer may not always be the highest price. A knowledgeable seller’s agent will know how to review purchase offers and determine which are most attractive. This will include understanding the buyer’s financing situation and other critical details outlined in the offer.

Then, the Realtor® representing the home seller will be there to negotiate throughout the contract phase and closing in order to ensure a smooth and successful transaction. Having a strong negotiator working for you should enable you to get a good selling price and avoid other pitfalls that can hurt the sale. They are advising you every step of the way while working with the buyers and their agent to negotiate a deal that benefits everyone. However, your needs and well-being should always be their top priority.

These are a few things to consider when you are deciding to sell your home and choosing a Realtor® to represent your side of the home purchase or sale. If you are buying or selling a home in the Southeastern Pennsylvania or Northern Delaware areas, contact The Cyr Team today. Let us know how we can help. We’ll be glad to show you how our negotiating skills and industry experience can benefit you.

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