One of the most common questions that realtors receive from both buyers and sellers is why a real estate agent is necessary. One of the reasons why you might want to consider retaining a realtor is to increase your negotiation abilities and decrease the risk that a property transaction will fail. Becoming a master of negotiation through powerful strategies is one of the best ways for a realtor to attract clients. The following will review some of the most powerful but also frequently overlooked real estate negotiation tactics that can help realtors move a transaction toward closing.
Good Cop, Bad Cop
Many of us have seen at least one movie in which one cop behaves in a menacing way toward the suspect while the other cop is kind and sympathetic. The suspect often then cooperates with the good cop. This strategy also works in property transactions. In these situations, the seller or buyer will act as the good cop and the realtor will act as the bad cop. Or, vice versa. In many cases, the other party will feel as if one of the parties is on their side. This tactic can be particularly powerful if a deal has stalled or the transaction is not moving forward.
Utilized by the buyer, nibbling is a powerful strategy. Sellers, however, should avoid succumbing to this tactic at all costs. Nibbling involves the buyer making one small request after another until the seller eventually agrees to meet all of the buyer’s requirements. For example, the buyer will coerce the seller into repairing a clogged sink by arguing that this is a small request when the buyer is prepared to purchase a $300,000 property. Once the sink is prepared, the buyer will then argue that the seller should prepare a blown electrical fuse in a bathroom using the same logic. Sellers are sometimes in such a rush to sell a property that they can find themselves jumping at these requests, but it is best not to do so.
Passing the Problem
This is another strategy that can be advantageous for the purchaser, but the seller should always attempt to stop it. This occurs when a property purchaser denies ownership of a problem that is interfering with the property transaction and pins this problem on the seller or realtor. For example, a purchaser who will not have the required closing costs until 30 days from now blames the seller for failing to perform repairs found in an inspection and cites this as a reason why closing does not occur within the allotted time. Sellers should never allow buyers to perform this tactic. Instead, sellers should be realistic about the terms of a transaction and always be prepared to walk away from a sale. If necessary, sellers should also be prepared to pass responsibility for the problem back to the purchaser.
Speak with an Experienced Property Lawyer
There are many complex elements of property transactions. If you need the assistance of a property law attorney during any part of a transaction, do not hesitate to contact Adam Law Group.