John Aaron Shares 5 Things To Avoid When Negotiating High-Value Deals

Don’t Lowball

Never lowball a house, especially if it’s just to make a quick sale. There is a big difference between listing price and market value. Always start at or above comparable listings as it is much easier to negotiate a price down rather than up. This maintains your credibility with buyers and sellers. After all, referrals in this business are priceless, and tarnishing your reputation will hurt your image and your income.

Non-Standard Contingencies

Never agree to non-standard contingencies. While the home sale contingency is not as common as it used to be, it is still out there. Make sure standard policies are in place to protect yourself, the buyer, and the seller, if you ever need to walk away from a transaction even after the contract is signed. You worked hard for that earnest money deposit, so work hard not to lose it.

Incremental Negotiations

Real estate is a fast-paced business with little time to lose. Incremental negotiations are a waste of everyone’s time, so go into every potential transaction with a good strategy. Be prepared with as much information as possible since this increases the chances of offers being accepted without any negotiations.

Find Middle Ground

As you are representing both buyers and sellers, you are representing two very different sets of interests. This can take strong interpersonal communication skills as you can’t simply say “take it or leave it.” You want to avoid incremental negotiations, but negotiation in itself is an integral part of the business. You don’t want to be a pushover or a hardliner but must find the middle ground to perform your job in everyone’s best interest, including your own.

Nitpicking

If a property has a major issue, this should be addressed immediately and factored into the asking price. Once a property is sold, do not ever nitpick a trivial issue. Make a running list of concerns to be resolved and address them all at once. They probably won’t come to a large enough total to change the sale price, so the easiest option for all parties involved is to ask for credit.

If you can conquer these circumstances, you will do well in real estate. Soon enough, staying away from these don’ts will become a natural element of your sales style. It does take a little practice at first but think of the first few times as a learning experience. “The last thing you want to do,” says John Aaron, “is to lose a 7-figure-deal by appeasing someone over light fixtures that aren’t to their taste.