An important part of closing a contract is
- Preparing your buyer or seller for the negotiations ahead
- Handling the negotiation process
- Forming an effective closing team to seal the deal
Most sellers think that an agent’s real work involves finding the right buyer, and most buyers think that the agent’s real work involves finding the right house to buy. In fact, the real work involves bringing the deal to a successful close, and that’s what this chapter is all about.
The public doesn’t see the hurdles an agent must overcome when reaching contract agreements and closing the transactions, but if that step goes awry, no other step in the real estate sales process matters. The process of negotiating a transaction involves fiduciary responsibility, market knowledge, client relations, honesty, disclosure, and enormous skill and tact. Sometimes success means your client is the one selected over other interested parties to buy a particular home. Sometimes success is a negotiated reduction in a home’s sales price. Always it reflects the realities of the market and the best terms and conditions the buyer and seller can achieve.
This chapter lays out the rules of negotiating, starting with knowing all about the market environment so you can convince your client to accept terms and conditions you believe are the best to be had at the present time, based on current market conditions. Often, you have to persuade a less-than-enthusiastic client who was hoping for a better outcome, so the following sections help you prepare for the task.
At the listing presentation or buyer interview consultation, after the client commits to a buyer’s agency agreement or listing agreement by signing either contract, take a few minutes to outline what happens next in the real estate sales process. Cover the following two points
- Briefly describe how you’ll work to represent your clients’ interests when it comes to negotiating and closing their transaction.
- Advise your clients to expect most initial offers to come in below the asking price. This information adjusts expectations and averts disappointment.
Your objective is to set the stage for the negotiations that lie ahead. Preparing your client for what’s in store is an imperative final step that will save you time, energy, and even emotion in the future.
Along with being truthful and realistic with clients, great real estate agents set an optimistic tone and create an expectation that all parties will work together to achieve a negotiated win/win outcome for both the seller and the buyer. In addition, the agents for both parties need to feel as though they’ve won as well, not just in terms of commissions earned but also in terms of feeling that they’ve earned the satisfaction of their clients.
An unbalanced marketplace makes it harder for all parties to feel as if they’ve won. In recent years, most of India experienced an unbalanced real estate environment; the inflated seller’s marketplace left buyers feeling that they were at a disadvantage in sales transactions. They had to act quickly, pay more than the asking price, and assume more risks, such as pay advance.
One of your jobs throughout the transaction is to serve as a calming influence. When emotions run high — as they’re sure to do — be the one to remain focused on the outcome and to settle down the buyer, the seller, and all involved agents.
