In today’s complex real estate market, creativity in negotiation is key. Higher interest rates are reshaping the landscape, and real estate professionals must embrace innovative approaches beyond traditional tactics. This includes collaborative win-win negotiations and out-of-the-box strategies.
Many buyer agents advise their clients based on what the agent is personally comfortable with – instead, consider providing all options to the buyer, including things that are beyond your personal comfort zone, and let the buyer decide how aggressive he or she wants to be.
Agents must understand both parties’ motivations for negotiation to be most effective and help buyers understand that flexibility is key. Emphasizing comprehensive market knowledge, a solid pricing opinion backed by data (offering above listing price is easier if a buyer understands the market), intentional preparation and expectation setting, and a clear understanding of the decisions the buyer will need to make under pressure when the time comes to offer in a competitive situation.

The Impact of High Interest Rates

Sustained higher interest rates have led to market shifts, affecting affordability and transaction volumes. This is also leading to inventory levels remaining near historic lows. 

Agents must navigate these challenges with a plan and intention. While buyers aren’t dealing with as much competition as they were 18 months ago, many properties are still getting multiple offers and  poorly prepared buyers will become frustrated. They need to be prepared to put their best foot forward. 

Most buyer’s aren’t “unreasonable” as agents tend to label them.  They’re just not properly educated. This is where we come in. 

Setting Expectations BEFORE writing an offer is Critical

Buying a home (and selling one for that matter) can be an emotionally charged experience.  While agents do this every day and understand the risks and rewards of decisions made to win an offer negotiation, our clients go into these decisions with a lot of uncertainty.  

When they fall in love with a home only to find out there are 3 other offers and a deadline to submit in 2 hours…their stress level goes way up.  Add to that an agent suddenly telling them about all the creative tactics they can use to win and sometimes it’s too much.  They make the offer they’re comfortable with in the moment and too often lose to a more aggressive, better prepared buyer.  

Instead of forcing them to go through this process of “learning the hard way,” have a conversation about the decisions they will need to make and the creative strategies they can employ when they start their search.  

This gives them time to ask questions, consider options and prepare themselves to make their actual best offer – helping them win faster and have a better experience. 

Embracing Creativity in Negotiation Tactics

There are 12 decisions a buyer needs to make when writing an offer.  Helping your buyer understand what these are and how their timeline, financial situation, and other factors allow them to use creative techniques to win is critical to their success.  

There is no single formula that works for every buyer.  We have to show them where they’re strong and where they’re weak and guide them through their options to write the best offer possible.  

For an in depth training on how to prepare a buyer and how to manipulate these 12 decisions to help them write their best offer the first time, access the course for free at Ascend Agent Academy. Click here to create your free account.  Once logged in use the group code Winning Offer to access the training.  **No payment or credit card ever – this is about learning and community, not paid coaching.**  This is just one of over 100 courses available – for more info or a sneak peak reach out using the link below.