It is nearly impossible to find a good deal in the real estate business. As a real estate agent, your deal is a direct result of your personality and experience. Planning a good deal and negotiating are two primary but crucial aspects of closing the deal. Each new opportunity will have advantages and disadvantages. Still, it is our responsibility to visualize the possibilities in each deal and advise the seller/buyer on how to best deal with it. Real estate is a long-term game and as a real estate agent, it is critical to understand the return on investment and then guide our potential buyers accordingly.
There are real benefits when you contact reputed and experienced real estate agents like us vis-a-vis contacting real estate agents who are still new in the market and do not have enough skills and expertise. Every client requires assistance in finalizing the transaction, such as how to finance it, which bank to approach, and the type of financing to be used. As a real estate agent, it is our responsibility to structure the deal for our clients while considering their situation and persuading them at all critical junctures. It is critical to negotiate with other parties involved on behalf of the client so that all parties understand that the deal is in everyone’s best interests.
Structuring a Deal the Right Way
There are many things to do before a transaction is completed. A real estate agent must be tough to deal with an endless list of questions and new issues with each unique property. While finalizing the transaction, two perspectives must be considered: the seller and the buyer. It is critical to remember that we must prioritize both the buyer and the seller in a real estate transaction. There is no deal and no commission without either of them. Both parties have their points of view, desires, and agendas. As a real estate agent, you need to finalize considering both parties for the deal for your commission.
Here are a few pointers to keep in mind while negotiating for both parties to maximize your chances of getting the deal.
1. A seller may have last-minute requests that cause the transaction to be delayed. They usually don’t say anything until the very end. For instance, you may not want to leave the property for an extended period. Some requests may also be unreasonable, effectively cancelling the transaction. When dealing with such sellers, we must be patient. The way we deal with a seller will ultimately determine whether we get a good or bad deal. Allowing the seller to present their point of view and giving them time to consider whether they want to offer an alternative makes all the difference. Being an attentive listener helps us close the deal.
2. When negotiating, it is always a good idea to consider yourself negotiating on behalf of someone else, rather than two parties pitted against each other. As a mediator, you must communicate effectively with the buyer, to whom you are accountable. Traditionally, intimidation was used to create a sense of urgency when selling or buying a piece of property, but as a good agent operating in the modern business world, you must be realistic and understand that such transactions require extreme patience when dealing with both parties; this is the only way to build trust with your clients.
3. There is a better chance of negotiating with the seller than with the buyer. However, there must be a balance, as humans prefer equal parts give and take. We try to accommodate the buyer as much as possible while maintaining the property’s resale value. Due diligence is required to finalize the best price. We are also wary of what the seller wants to include in the contract, as some demands may be unrealistic and impact the final sale of the property. For instance, a clause such as the property cannot be used for a specific purpose. If the scenario changes in the future, it will backfire on the buyer, resulting in an ugly spat.
4. As a real estate agent you have to know that no property is perfect; there will always be flaws if you look closely. If you focus on a property’s weaknesses, you will always find reasons not to close the deal. You will lack conviction when you try to pitch a property to a prospective client. As a result, we always analyze the property, identify its strengths, and highlight them to the seller to ensure that the deal is fair to everyone.
5. A lawyer’s advice and guidance are required to understand all of the clauses, agreements, and deeds during the deal’s finalisation. Also, not relying on a lawyer entirely is a wise decision because they can only guide you through the legalities; it is upto us to do our research and advise the seller and buyer accordingly.
6. Negotiating with the bank can be difficult because banks rarely have much wiggle room. Every person who approaches a bank for a loan represents a credit risk to the bank. As a real estate agent, it is our responsibility to guide the buyer through the process, assist in preparing all documents, and ensure that we expedite the process for the clients to materialize the deal as soon as possible.
A strong foundation is necessary for real estate agents to make a mark in the industry. One must be bold and cautious at the same time and must have an appetite for risk along with an attitude of having nothing to lose and everything to gain.
Now that you understand how we structure a real estate transaction, you’re ready to start contacting us if you have a property to sell or if you are in the market to buy property! An excellent real estate agent must have the right networking strategies, an eye for detail, foresight to guide clients, and good communication skills to achieve great success. With all these qualities, a positive attitude and the desire to put your best foot forward with every deal that comes your way, you know you are dealing with the best real estate agents in the market!
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