Black belt negotiating for buyers’ agents

By Michael Soon Lee, CRS, GRI

It’s become a buyers’ market in many areas of the country, so in these locales much more is negotiable than when we were lucky just to get an offer accepted at full price. Unfortunately, many of us have forgotten how to bargain effectively for buyers during the last decade when the sellers called all of the shots.

Negotiating is like a martial arts contest where knowing how to use power, leverage and timing can mean the difference between winning and losing. For instance, a martial artist would never go into a contest without first spying on his opponent to find weaknesses. Similarly, before making an offer you’ll want to discover everything you can about the seller and his or her property. Factors such as how long the house has been on the market, any price reductions made and why the owner is selling can give you an advantage. This information can be easily obtained from a quick look at the MLS history and a call to the listing agent.

Experienced fighters will warm up before engaging in a contest so they don’t injure themselves. Likewise, savvy agents will not just jump into a negotiation but will instead try to build rapport with the listing agent and the seller, if present. Studies show that people like to do business with people they like and explaining who your clients are and why they want the property can make the talks go more smoothly.

Once the contest begins, martial artists are always looking for an opening or hidden weakness and it’s usually not something obvious like a knockout punch. In real estate the best deals generally do not involve price because it’s so cut-and-dried. While the seller has a bottom line figure and so does the buyer, there are many other factors that can be much more important to the buyer. Items like interest rate buy downs, repair credits and seller financing can represent tens of thousands of dollars in savings to a buyer that have nothing to do with price.

Black belt fighters do not believe in win-win and neither should you. Always try to get the best deal you can and assume that the other party will, too, because they will. If the seller accepts your final offer you needn’t feel guilty since it must satisfy his or her needs. How good a deal it is for the seller is not your concern.

Martial artists keep looking for an opening even when a situation seems hopeless. As long as both sides are talking keep fighting for your client by asking the seller to suggest possible solutions. You can also brainstorm together to generate ideas.

If a karate tournament ends in a tie it goes to sudden-death where the first one to score wins. If a bargaining session hits a deadlock you have several options. You can suggest something off-the-wall like asking the seller to throw in his extra car since you have nothing to lose. Alternatively, you can walk away but leave the door open to return with a different offer.

Finally, when a fight ends the contestants bow to each other as a sign of respect and gratitude. When a contract has been ratified you should congratulate the seller and remind him or her about the benefits of the deal such as being able to buy or build another home, not having privacy interrupted by potential buyers and being able to move ahead with other plans.

Great martial artists are constantly practicing their craft as should you. Instead of just waiting for the few opportunities to just negotiate real estate deals for clients look for chances to bargain every day. Any time you pull out your wallet ask yourself, “Is this an opportunity to haggle?” While you don’t need to dicker over every little item, the more you practice the more adept you will become at the lost art of bargaining.

ABOUT THE AUTHOR: Michael Soon Lee, CRS, GRI, has been a real estate broker for over thirty years and is the author of two new books “Black Belt Negotiating” (AMACOM Books, 2007) and “111 Ways to Justify Your Commission” (Kaplan Publishing, 2007). He is a world class negotiator and martial artist who has bargained on everything from multi-million dollar real estate deals to discounts on gas for his car. Michael shows people how to use martial arts secrets to gain leverage in any bargaining situation. His website is www.SeminarsUnlimited.com and his phone number is: (800) 417-7325.