One of the most influential factors that will affect the result you achieve is how your agent negotiates with buyers.
Ultimately, you want an experienced agent dealing with this part, and someone who is motivated to spend as much time as needed to make sure you get the best offer.
This is an industry that generally pays a poor rate of commission to its sales negotiators. It’s why the majority are young, and the industry attrition rate is so poor.
If the agency charges 1.5% of a £500,000 property sale, it’s a fee to the seller of £7,500 (excluding any VAT).
The agent may only receive 5% of the office fee as commission for that sale which is £375.
If this negotiator convinced an owner to accept an offer £50,000 below their asking price, the negotiators commission is affected by just £25.
Whereas the seller is losing £50,000.
You can see why a negotiator might not see the value in spending any more time than is necessary to negotiate with a buyer or may even turn their attention to the seller through fear of losing their buyer and a potential sale. After all, £350 is better than nothing at all.
You should make sure you choose an agent who is motivated to spend all the time necessary to negotiate the very best outcome for you and whose goals are aligned with your goals.
I often agree a bonus scheme with my clients based on the eventual sale price, so that we both have the same motivation to achieve a brilliant result.
A good agent should always when negotiating –
You have two ears and a mouth- use it in that ratio. Listen, use calming tones, evidence you are listening and validate their comments or concerns.
Most of us don’t listen brilliantly as we’re already planning what we’ll say next. Focus on really listening to what the other party has to say. In so doing, you make them feel safe and quieten their own internal voices which will build trust with them. Don’t rush towards your conclusion, it’ll lead to them distrusting you.
Create a safe space
Let the other party know it’s ok to say ‘no’. Pushing for a yes too quickly will lead to them distrusting you. Never lie in a negotiation for the same reason.
Use the right words and tone
Mirroring their words and using a calm and steady voice will let them know your listening and words such as ‘that’s right’ will give an impression sense they are being validated and will encourage them to talk more freely about what they really want.
Shaping the negotiation
What leverage can you use to reach a conclusion that suits you? Perhaps offering some furniture they expressed an interest in or offering to refresh paintwork might get the best possible deal for you, rather than splitting the difference.
To negotiate hard with confident negotiators.
Setting a deadline for offers
Setting a deadline usually results in impulsive responses, driven by emotion and the fear of losing the property.
This should always be the goal for your agent if you are looking for the best result.
If you have advertised your property correctly you should have received several offers from different buyers, at which point you should review the offers and decide which parties to invite to make their best, final offer.
This often results in the very best results being achieved.
If you want to talk about selling your property, please call me on 020 8432 1505 or email me at email@example.com.