7 INSANE Negotiation Tactics for Real Estate Agents #negotiation #realtor #realestate

Today, I'm going to share with you my seven most effective negotiation tips in real estate. I don't share this information with many people. These are my secrets for you guys. Let's get after it today. Negotiating in real estate is by far the most important skill that you can have because not only are you going to be able to win more clients, but you're also going to be able to help your clients get under contract, which means you get paid. And also when it comes to buying properties for yourself, you're going to be able to win at a higher level there as well. Alternatively, if you don't sharpen your negotiation skills and you don't become the best, you're going to lose deals for yourself, your clients, your income will be affected. So this is by far the most important thing for those that are new to the channel. My name is Shane Holmes. I've been a real estate broker for a decade and I live, eat and breathe real estate. I love it more than anything else. So let's teach you guys how to win. Be sure to stick around until the end of the video because I'm going to share with you my most effective marketing and wealth building tool at the end. Let's get after it. I always go into a negotiation knowing exactly what it is that I need out of the deal on the other side for myself or my client. And really, this is half the battle. Most of the time, other people actually haven't done this. So you already have an advantage going in, knowing what the pain points are, what you need to touch on and how to win the deal. Another reason you want to do this is because you'll look like a rock star to your clients when you go into the deal and you already know what they need out of it and you already know what your client needs out of it and they see you address it upfront. They're going to be like, OK, this guy's done his homework. He knows what he's doing. I'm going to refer him business and we're going to close this deal together. Number two, guys, this sounds rudimentary, but you always have to take the bird in the hand when you drag deals out and you don't act quickly and you don't strike while the iron's hot. I have seen so many people lose that way. And I, for my clients and myself, have always had the best success taking the deal that's in front of me and making the most of it instead of getting greedy. They say pigs get fat and hogs get slaughtered. And I live by that terminology. Another piece of this is if a deal does come on the market and you or your client are interested in that property, you need to be the first in best dressed and get your offer in fast. I've actually had a situation where I got my buyer's offer accepted for one point two million because we went in immediately, wrote it up best and final and got it because we came in aggressive and fast. That home that I sold them for one point two million appraised for one point four million. So they won two hundred thousand dollars just for working with me and moving quickly. I've also seen this work out the other way where I'll have a client drag their feet on a property that they really want. And by the time they get their offer in, there's four other offers. Sometimes you can't avoid it, but oftentimes you can. And in those situations where you don't avoid that mistake, you will pay for it. If you drag out time, it just leaves more liability for other people to come in or for the deal to change. Sometimes people change their minds as well. So striking while the iron is hot is so critical for you and your clients. Number four, you need to build a really big market presence in your area. Let's say that Susie is representing a seller. Susie gets an offer from Shane Holmes and she gets an offer from John. John's an out of area agent or he's in the area and he doesn't do a lot of business. I have a lot more leverage than John does because I have other deals. When that agent wants to rep a buyer on my listing, that helps. I can use that as leverage to say, help me here. I'll help you there because our paths are going to cross again. So they're going to want to push your deal because they're going to come across you again and they're going to want you to return the same favor. So that really helps my offers in my market because we're going to have to do business again in the future and they want to be on good terms. Another upside is that whether you're an investor or a realtor, if you have big market presence and someone has a deal, they're going to think to call you. So a lot of my flips and investments that I get are from people that just know me in the marketplace that call me because I do a lot of business out here and they know that I'm either going to have a buyer for it or I'll buy it myself. So having a big market presence in a big brand is extremely important for you and your clients. Number five, never get your emotions involved. You'll get hurt in two ways. One, if you're an agent and you're representing a buyer or a seller, if you get emotional and you start yelling or if another agent starts yelling at you, whatever the case is, you always have to keep your cool because you have a reputation to protect and your liability goes up. People usually get sued when they get emotional and they do dumb things. So play games. You know how to win and winning is not playing their game of yelling. So always keep a low tone. Don't get emotional. Let them do whatever they're going to do. In the end of the day, you're the one that has control. And on the other side of that, from a buying real estate standpoint, if you get emotional about a deal and there's five offers on it and you know where your numbers are, you might go outside of what the numbers tell you to do just because you're getting emotional. So always keep your cool and don't get emotional about the buy. Winning in real estate is buying right. And when you get emotional about your purchase, that's how you can lose big. Number six is huge guys negotiating the request for repairs. So when you buy a property, you put it under contract and you do your inspections to see what's wrong with it. This is an art. When you go into this process, you're going to inspect the property. You're going to see all the things that are wrong with it. And then you get to ask for either work to be done on it, to be corrected or money back as a credit through escrow. And I say this is an art because this is a very emotional part. You know, the seller's newly under contract on a property that they're selling. They don't want to get screwed. And where I see people lose on this is they'll go for too much money. When you ask for large amounts of money in this process, that can oftentimes put the seller into defense mode. And that's the last thing you want to do. You want to be able to maximize the amount that you or your client are getting on the request for repairs without putting the seller in defense mode. Cause if you go big, they'll dig their heels in the ground and go, I'm not giving you a dime. And sometimes deals blow up like that. So when you're going through this negotiation process, try to make it palatable. You don't want to go for blood. You want to get what you can get out of it without pissing them off and putting them into defense mode. On the flip side of that, oftentimes people will buy houses in as is condition and then renegotiate. And I really don't like it when people do this. I mean, we all do it, but when you buy a house in as is condition, I personally never asked for anything. I just had a deal where someone tried doing the reverse to me. They bought it as is and asked for 20 grand off the price. And I said, no, I'm not giving you a dime. We have a contract. You should perform to it. When I buy a house as is, if there's no big foundation issues or anything like that, I always like to perform per the contracts that I sign. Because if that agent comes and does another deal with me, or if that seller has another property to sell and they're going to sell it to me, they know that I stay by my word and I don't go for blood. So there's two ways to work this in a real estate space and be very cautious because deals can blow up like this. All right, we're moving on to number seven. This one is huge, but stay tuned until after number seven, I'm going to share with you my wealth grading tool. Seven is the most important one in terms of all these negotiation processes. And you need to make the other party feel like they are winning. In the end of the day, nobody's performing on a business deal unless they feel like they are winning. So when you go into a deal, you're going to know what you want, but almost more importantly, you need to know what they want too. So when you're negotiating, you're helping them get what they want, which in turn helps you get what you want. So when they're winning, not only are they more likely to perform on the deal, but you're probably going to be able to get more of your terms accepted as well. So wealth creation tool, this is specific to real estate agents. Guys, we don't buy enough property as real estate agents. I don't know another agent in my market that owns a significant amount of rental properties. And that's where I see agents not winning. You need to build wealth so that you can have passive income and retire. That's why most agents work until they're 80, 90 years old. Like some of these guys are just cranking until the day they die. And we don't want to see that. I want you guys to be able to retire. Here's a great hack. We can charge a standard 5% commission when we buy a home off market. That's a standard fee and we can buy a property with 5% down so you can get into a deal for just paying the closing costs. I don't know another industry where you can do that. And that is such a powerful thing. We come across deals all the time. And I think that more agents need to put themselves in the position of owning instead of selling because income is trash and it runs out and you spend it. But ownership of real estate builds wealth. What I did early in my career is I bought a duplex when I was 23 or 24 years old. I put 5% down. I represented myself. I collected a two and a half percent commission. So I came out of pocket two and a half percent to buy the deal. I put, I think it was like $80,000 of my own cash into renovating it. And I've done that several times now. And I have a lot of passive income because of that. Now that I can't buy these homes as primary occupancy anymore, I do have to get hard money loans and scale out that way. But for the new agent watching this, buy more real estate, put 5% down, do whatever you need to do to get into this game. And now that I've been in the game 10 years and I own a relatively significant amount of real estate, I don't have to work quite as hard because I have income coming in from my rental property, other businesses, et cetera. So invest early, use my 5% down 5% commission strategy to build wealth long term. I hope you guys really got a lot of great information out of this video. If you have any questions, drop them in the comments down below and make sure that you subscribe for more information. We'll see you next video.