Learn how your conduct before an offer can affect the success of your offer negotiations.
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- Ambrose French
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1 Learn how your conduct before an offer can affect the success of your offer negotiations. *As an independent contractor sales associate affiliated with a Coldwell Banker franchised office, you have a variety of resources, tools, technologies and educational opportunities available to you. The Coldwell Banker educational materials, programs, meetings, or video instruction or programs are not mandatory. Nothing in this document is intended to create an employment relationship. Note: The videos contain suggestions and best practices with regard to specific issues you may encounter for you to use at your discretion to assist you in your career as a real estate sales associate. The views expressed in any program videos produced by independent third parties are not necessarily the views of Coldwell Banker Real Estate LLC Coldwell Banker Real Estate LLC All Rights Reserved
2 Building a Positive Business Negotiations can be the most challenging part of your real estate business. They can be fraught with conflict and emotions, pitfalls and roadblocks. But approached with the right frame of mind, negotiations don t have to be negative or unpleasant. The following materials are offered to help you learn more about negotiations and best practices that may assist you in your real estate business. Indeed, adopting a positive attitude has been shown to have a significant impact on sales results. Carol Dweck, among others, argues that your mindset affects what you are able to achieve. Adopting a growth mindset: that there are always new things to learn obstacles are simply a path to growth; can help you approach negotiations with less fear of negative consequences. Shawn Achor shows how maintaining a positive attitude helps increase sales significantly. We become more successful when we are happier and more positive... Optimistic salespeople outsell their pessimistic counterparts by 56 percent... It turns out that our brains are literally hardwired to perform at their best not when they are negative or even neutral, but when they are positive. Shawn Achor, The Happiness Advantage Page 2 of 6
3 First Contact: The Beginning of Negotiation When do negotiations start? In one sense, negotiations start from the moment you first contact another real estate agent. Certainly, negotiations over a specific property begin when you first call to schedule a showing of that property. Your conduct in regard to that agent from that moment on will affect the negotiation process should your client choose to make an offer on that property. Adopting an amiable, cooperative mindset can set the stage for effective negotiation in the future. Similarly, for a listing agent, your conduct from the moment you receive a request to show a property will affect negotiations. Furthermore, the scene does not reset once a different property comes into play. Any previous interactions you have had with that agent will affect the negotiation process going forward. Finally, your reputation can precede you. If you develop a reputation for fair and professional conduct, that reputation will affect even your interactions with new agents, and if your reputation is not favorable, that will spread even faster. Both will impact your ability to achieve advantageous results for your clients. What types of actions and behaviors can affect your reputation in the market? Here are a few to consider: Accurate and well-crafted property descriptions Prompt responses to calls and s for appointments and showings Cooperative and positive demeanor Complete and accurate communication of your clients questions and offers Page 3 of 6
4 Giving Meaningful Feedback Providing useful and appropriate feedback is a second point of contact that can establish a positive basis for future negotiations. After showing a property to a client, always respond to the listing agent with feedback on the property. Whether it shows well or poorly, feedback can help the listing agent position a property properly, or provide an agent with support to approach the seller to make changes that will help the property to sell. Providing feedback promptly also helps the listing agent look good with their client. Care should be taken to provide useful feedback without tipping your (or your client s) hand in future negotiations. Statements like My client loved the house, it s absolutely PERFECT for them!!! could compromise your clients negotiating position by undercutting your ability to negotiate a lower selling price. Providing feedback while leaving strong emotional reactions out will be far more effective for the longterm benefit of your client. Underselling your clients interest in the property can also be a disadvantage in a situation where other offers may be forthcoming. Telegraphing an appropriate level of interest is a skill that may take a little time to develop. Page 4 of 6
5 Establishing Goodwill We understand that the role of a REALTOR is to be a powerful advocate for our buyer or seller client. Conducting negotiations on their behalf is an important aspect of that advocacy, and it will often involve mediating competing interests and dealing with unpleasant people. Acting in a pleasant and professional manner will go a long way in establishing goodwill that will carry forward into the negotiating process and minimize unnecessary conflict that could complicate negotiations. Some behaviors that will help to build goodwill include: Giving a listing agent ample time to respond to a request for a showing Responding promptly to requests for showings Clarifying and following any directions regarding showing a property (timing, don t let animals out, etc ) Providing useful feedback on the property Providing prompt notification is a showing is cancelled Maintain a positive attitude Note: The proper approach to any negotiation must be influenced by your representative relationship (i.e. buyer or seller agency) to the negotiating parties. Page 5 of 6
6 Resources To find more help on negotiations processes and strategies, we encourage you to check out these Coldwell Banker resources available on CBWorks. Daniel H Cohen: For Argument s Sake (9:35) This TED Talk video speaks about how viewing arguments and negotiations as a form of war or us versus them creates unnecessary negativity. It invites you to re-examine your role in negotiations in order to turn them into opportunities to grow and improve. Post-Negotiation Review In CB Exchange enter Post Negotiation Review in the search box on the home page 2016 Coldwell Banker Real Estate LLC. All Rights Reserved. Coldwell Banker Real Estate LLC fully supports the principles of the Fair Housing Act and the Equal Opportunity Act. Each Office is Independently Owned and Operated. Coldwell Banker and the Coldwell Banker Logo are registered service marks owned by Coldwell Banker Real Estate LLC. Each sales representative and broker is responsible for complying with any consumer disclosure laws or regulations. Page 6 of 6
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