Have you ever found yourself in situations where offers fall through and deals just don't seem to close? Well, from my 15 years' experience in Real Estate, I've learnt to lean on what I would call the 3 Ps during negotiations. For instance, we push by sharing information, data, and offering proactive support. We persist in our relentless pursuit of reaching an agreement. And we can also pull back—yes, we can take the deal off the table when necessary.

1.          Base Your Negotiations on Market Value, Not Just Asking Price

My strategy has always been to assess a property's value before signing any agreements. This valuation, rather than the asking price, serves as the foundation for negotiation. It often involves gathering data on comparable properties before settling on the asking price. 

I like to offer an asking just below the minimum the seller is likely willing to accept. Think of this analogy in tennis: ‘It doesn’t matter how hard your first serve is. If you do not get the ball in play, that first serve is wasted’.

2.          Set Realistic Expectations

One of the most effective strategies I use in negotiations is a combination of managing expectations and exercising discretion. I like staying one step ahead in the negotiation. For my buyers, I like to run through scenarios to anticipate the seller’s moves. - For my sellers, I prepare them for the reality of lower-than-expected offers and potential reasons that could lead to the lower offers. This way, both sides are better equipped to handle the twists and turns of the negotiation process, ultimately leading to more successful outcomes for all parties involved.

3.          Learn What the Other Party Really Wants

It's important to understand the motivations behind why the seller is selling and why the buyer is buying. For the seller, understand whether they are looking for a quick sale due to reasons like pressure from a bank deadline or medical expenses etc, and for the buyer, determine if they are looking for their first home, a redevelopment opportunity, or simply land for investment. This insights into both parties’ motivations can significantly inform your negotiation strategy. 

4.          Keep Your Emotions in Check During Negotiations

Emotion, especially anger, is a weakness at the negotiating table. Don’t whine, don’t bitch, don’t pout, don’t curse, don’t get angry, don’t pace, and don’t storm out. Things happen. If you want to become a stronger negotiator, you need to learn how to keep your poker face—no matter what the other side throws at you.

Not everyone will act as respectfully as they should. Know this going in and be prepared to let any negativity roll off your back with a smile. It’s all part of the job.

5.          Negotiate by Phone Before Committing Anything to Paper.

Keep it simple. Multiple counteroffers can lead to confusion and result in a less-than-ideal real estate buying or selling experience. Whenever possible, negotiate deals over the phone with buyers before putting anything in writing. Too much back and forth can complicate counteroffers unnecessarily.

6.          Present Multiple Offers in Person

Instead of simply emailing offers to sellers as they arrive, simplify the process for them. Set a deadline for when you’ll meet with them to provide an update. Create a spreadsheet that outlines the offers and their terms and take the time to explain each one to your sellers. If you’re unable to do that, a Virtual meeting or a phone call is still better than a lengthy email chain with PDF attachments cobbled together. 

7.          Arm Yourself With Data for Stronger Negotiations

The saying in real estate is "location, location, location," but in negotiations, it's "data, data, data." Let data guide your negotiations and decisions. Collect information and use it to your advantage—the key is to have more data than your counterpart.

"The person with the most information is more likely to succeed in the negotiation."

8.          Make Them Believe the ‘Yes’ Was Their Idea

Smart negotiators often subtly encourage the other party to think they’re in control. A great way to do this is to offer them a quick out. Use affirming language like “You’ll probably refuse, but……or you’ll probably disagree but....” to increased compliance.

9.          Master the Power of ‘No’

Consider employing a strategic "no" when countering the asking price. For instance, if a buyer requests major renovations to the house, you can say "no" and then guide them towards making a lower offer that takes those renovation costs into account. Just be sure to include a disclaimer that this will be presented as a proposal to the seller.

10.        Focus on Timing

Over time, I have learnt that the most important factors in negotiating with buyers or sellers is the timing. If things move too quickly, it can feel too easy for everyone involved; if they drag on, one party might lose confidence or have second thoughts. The key to managing a deal is communication. Keep the other side informed about what to expect and when. 

11.        Keep Records of Fellow Agents in Your CRM

It’s crucial to keep notes on each listing agent you work with so you can adapt to their communication style for future deals. Did they prefer phone calls or texts? Were they responsive? How long did they take to respond to your emails? This is all useful data you should be noting in your customer relationship manager (CRM). It will help you assess whether they’re an agent worth working with again in future.

12.        Negotiate With a Win-Win Perspective

Many new agents make the mistake of approaching every negotiation as if they’re going into battle, which can often lead to deals falling through. Instead, focus on finding solutions rather than escalating issues into an adversarial crisis. Your clients and fellow agents will appreciate this approach. 

13.        Offer the Buyer Mortgage Solutions 

A key strategy in negotiating deals is to stay informed about the interest rates banks are offering on mortgages. With this information, you can help buyers identify the most attractive options and connect them with specific lending institutions. This not only facilitates closing deals but also builds confidence in the buyer, showing them that they are working with a knowledgeable professional, not just a broker.

14.        Live Conversation Beats Texts & Emails Every Day of the Week

Buyers and sellers will always remember their experiences with agents who communicate via phone calls rather than relying solely on texts or emails. A phone conversation adds a personal touch that can be easily lost in written communication. There is a natural back-and-forth in a conversation where way more information and understanding come out, and those things can be essential in getting to a win-win.

15.        When Things Get Personal in Negotiations, Sleep on It

Agents should not make negotiations personal. Both sides want to get the deal done. If it’s getting personal, I recommend slowing down the negotiation and communicating that both sides should sleep on it before moving forward.