10 Negotiation Techniques applied to Real Estate

To focus this approach on the issues that I consider most important, I resorted to a study (carried out by the Faculty of Economics of Porto), which sought to identify what are the characteristics perceived as important for a Portuguese commercial negotiator, in order of importance. For each of these points I will address them from the perspective of a Real Estate Consultant.

1 - Knowledge of the subjects to be negotiated

Knowledge is power: "Scientia potentia est". Depending on the type of customer, buyer or seller, it is important to take care of:

Selling customer - When approaching an owner, it is essential to know: the state of the real estate market in the neighborhood or area of the property; the average selling time for similar homes; the dynamics of the real estate market in the respective county or district , etc. One of the ways for a Top Producer to demonstrate his added value is to help the owner of the property to choose the right price for his home and to do so in a confident and unhesitating way. To be able to do this, you have to be informed of the dynamics of the sale and lease market, relating to the previous 6 to 12 months. When the house or other property belongs to the consultant's area of influence, his experience is decisive. You can and should use the history of sale and mediation of properties that you promoted in the area. If not, you have several tools you can use, some paid and others free.

• Paid tools - Fortunately, today there are many paid tools (at an affordable price) that you can use for this purpose: Casafari , Reatia , Infocasa , Alfredo , Idealista's Market Navigator, etc.
• Free tools - Another alternative to determine the most appropriate selling price for a property, is to use one of the many portals (MLS) specializing in real estate sales ads( Idealist , Casa Sapo , Imovirtual , etc.). You can also use the websites of major real estate agents. The KW Portugal website has more than 6,000 properties for sale or rent that you can search and compare with the one you want to evaluate.

Armed with this information, it is essential that on the first visit be accompanied by an indicative Market Study, with a recommended price range, even if you do not yet know the house in question. This can make a difference, because for the owner, the presentation of credible data is a clear demonstration of his added value as a consultant.

Purchasing customer - When accompanying an interested person on a face-to-face or virtual visit to a property, it is essential to be well prepared and to master 100% all the information you have compiled when raising. Remember that you cannot hesitate or answer questions from interested parties. for ignorance. You have to be prepared to answer the questions of the potential buyer:

• Know the characteristics of the house in detail;
• Know the expenses of the condominium and how it is organized: if there is working capital for works, if there are no defaulting tenants, what maintenance interventions are planned, if there were recent works, the type of neighborhood, etc.
• Be informed about the comparable properties in the area, in order to be able to value yours in the face of competition from other comparable houses;

2 - Knowing how to listen

It is surprising how much this issue can make a difference, both in terms of owners and buyers. It seems easy to put in place, but it is not! Learning to listen is to counter the natural impulse to impose your presence. Before speaking, you need to get to know your client first and then adapt your speech. Force yourself to interrupt your speech with questions, so that you can listen to your interlocutor.Consultants who always deliver the same speech, like "plate three", are devalued by the most demanding customers. This is the first step to gaining your confidence, because knowing your life projects and your tastes and preferences better, you can adapt your speech to the real needs and interests of that client:

Purchasing customer - Make an assessment of the owner's personality. Remember that knowing your DISC behavioral profile (Dominance (D), Influence (I), Stability (S), Compliance (C), can help to change your approach and speech and avoid friction. you have hired and to which you will have to dedicate your attention for more time. Without it there is no business!

Buyer client - This is the biggest challenge for a consultant, to dominate your confidence in a short time and lead you to the most important goal which is to sell you a house! This issue is important both in the pre-qualification telephone approach and at the time of the visit. Try to know why the client is looking for this property, for whom, what is his professional activity, know little about his family life, his dreams and disappointments, etc. Before starting the visit, getting to know a little about your tastes and interests, can make all the difference in the way you are going to present the property.

3 - Ability to verbal expression

This is a skill that for some is innate and for others a challenge. But one thing is for sure, continued practice can work wonders for you! Your persuasive power depends on it. The intonation, timbre and rhythm of the voice are important. If using a very high tone of voice can transmit aggression, if speaking too fast can make it difficult for your interlocutor to perceive.Remember, the goal is to gain trust and establish an empathic relationship quickly with the owner or buyer.

4 - Integrity

This is an expensive value for Keller Williams: Integrity: doing what is right . In a sector that moves millions, of which a small part goes to the consultant, there is a temptation on the part of some to sacrifice transparency and integrity in detriment of the commission that can be obtained when closing a deal. It is a mistake! No Top Consultant can maintain his success if he behaves this way. Deceive the owner by promising potential interested customers that you don't have, beckoning him with a sale price that he will never be able to achieve, deceiving him with false visits just so as not to miss the fundraiser, anyway ... lying and falsifying is not a big deal. all the way that will make you win consistently! Remember: the road to success is long and difficult to achieve, but the path to discredit is fast and difficult to counter.

5 - Ability to argue

This is an area that is composed of two facets: its innate, general and abstract capacity to argue (some are born with it and others have to work hard) and the technical capacity to do so in a certain commercial area. In real estate mediation this is a competence that is worked through through training. And at KW it deserves special treatment through scripts that help the consultant to never "stop" his speech with hesitations. Knowing how to argue involves knowing how to value the positive aspects to the detriment of the defects of the property, in the dialogue with a buyer, or highlighting its value proposal in relation to the competition, in the dialogue with the selling customer.

The best commercials are those who listen to their interlocutor, respond intelligently and clearly to their clients' objections, leading them in a natural and "non-robotic" way to the intended objective. Do not sell what you do not believe, avoid talking about topics with which you do not identify. Your client must perceive the credibility of what he says.

A tip: learn to say "NO" . Do not confuse the word "no" with a negative spirit. Contrary to common opinion, "no" is one of the most powerful words you can say. In contrast to the negativity that presupposes a continuous attitude of contradicting the customer and his expectations. 'No' is a moment of clear choice, if on the one hand it limits the chances, on the other it focuses and directs the client to the space of positivity, by enumerating and valuing the possible alternatives.

6 - Capacity for preparation and planning

I never appear before a poorly prepared customer. I try to find out in advance who he is, using LinkedIn and the other social networks. I search Google by name, full or partial email (excluding the part after @). If it is a visit to an owner, I will be accompanied by a previous Market Study, I search for properties comparable to the sale in the neighborhood to know the state of the competition.If it is a visit to a property, in addition to obtaining prior information about the potential buyer, I will be provided with a printed brochure, I will send prior information about the property, its location, I will be prepared to answer questions about the neighborhood and the strategy foreseen for the area, etc.

When the most desired moment arrives, the CPCV or the Deed of Purchase and Sale of a property, nothing can fail! The legal support of my Maket Center, KW SOL is essential, but the preparation done beforehand makes all the difference. Everything has to be planned and customers notified in writing and by phone. Distracted clients abound;) And if something goes wrong at the notary's office or at the solicitor's office, I don't want to be the main cause!

7 - Ability to gain respect and confidence from your opponent

Respect is difficult to earn, but in addition to the communication skills and competencies mentioned here, for me, the results speak for themselves. Without results there is no confidence to resist. My commitment to each business is total and customers realize this, even when they are not satisfied with something. I promote Win-Win relationships, but first and foremost the owner client, because he is the one who pays me and it is thanks to him that I do business. I do not "work buyers" and for me Lead Generation goes through 60% for the satisfaction and results obtained with owners. As I usually say, those who have a "product" dominate the negotiation and guarantee success in the short, medium and long term!

Transparency and work can make a difference, but my knowledge, the data I present and the mastery of the topics covered are a very important initial step. On the other hand, the trigger that triggers the change from which I gain a part of my client's trust, results from the more informal dialogue.I like to make friends, I like to share my successes and disappointments, I am genuinely interested in helping and I care about the other side. I try to know more, not out of gossip, but because for me it is not just another customer, it is a potential friend and a family that I hope to see happy on the day of the move, or when it is an owner, on the day when the buyer gives you the check :)

8 - Ability to debate

I work in the upper middle segment of the real estate market, I often have to promote luxury homes by famous people or simply media people. In short, my type of customer, buyer or seller, is demanding, cultured and difficult to approach initially. I can't exhaust the conversation with real estate issues when I talk to a client with this profile. The more one climbs the social pyramid the more caution I have to be. I talk a little about everything, but above all about themes that unite us and avoid others;) There are taboo themes and I respect that reality, I don't talk about politics, sports or other fracturing themes :)

We live in difficult times imposed by the pandemic, but whenever possible I try to privilege face-to-face dialogue. It is in this space that the debate takes place, with more brilliance and leaves marks that last over time. I insist on presenting myself well dressed and with a professional look. The first impact and the way I talk to the customer is the fastest way to win their trust.

9 - Ability to perceive your opponent's feelings, needs and points of view

It is here that a negotiation is also won. You can lose a business, but above all I do it to win another friendship. When we open up and share our personal experience (without going into unnecessary confidences), we are able to open a door that was previously ajar. I often feel that click. A client who, until then, was reserved, closed and uncooperative, when feeling that someone listens to him and cares about his needs and points of view, completely changes his behavior, and empathy and a trusting relationship take place.

10 - Creativity to overcome obstacles and difficulties

This is the touchstone that distinguishes a Top Producer from an average consultant. For a successful consultant, when he is in front of his client, "his head is racing." He has to anticipate the direction that the conversation might take, deviate from the pitfalls and look for "safe terrain".Never fail to answer uncomfortable questions and ultimately assume ignorance about the topic, but try to drive your interlocutor's unwanted line of thought by asking him questions that lead you astray.

On the other hand, creativity is the "twist" that makes the difference. How many times, before an owner disillusioned with his experience of selling his property, I give him a new breath suggesting a change in strategy. If the house is not sold for that price, I suggest an interregnum to requalify it (using Home Staging). If the owner does not believe in the work of promoting a house, I demonstrate with numbers the impact of my Marketing. If a Client is not pleased with this property, I suggest another one. If a buyer is "blocked" because of a limited space or configuration of the house, I negotiate an intervention or adaptation work, etc. with the owner. etc.