Leah Azizian is back with us this week, sharing her expert tips on negotiation tips for agents. These tips can be used as any agent sees fit though and are useful for one's career.
Negotiating is an important part of being an efficient and successful real estate agent. Read on to up your skills of negotTION.
1. Gage the level of interest & gather information before placing an offer.
Azizian shares, "once a buyer is ready to submit an offer, I'll begin by walking them through the market value and comparables." Azizian then recommends that agents inform their clients that she will also speak with the seller's broker to understand the price and current level of interest, prior to submitting an offer. This helps agents better position their offer and expectations, and essentially initiates the negotiation prior to it even beginning.
This is a great way to go about setting the ground rules and beginning the process of negotiating. Agents should absolutely add this to their arsenal of tricks.
Questions to ask during the discussion:
- What has been the level of interest so far? Seller's brokers will respond positively but hone in on this by asking whether they have received and accepted any offers. This can be great insight into offers previously received and why the seller hasn't been willing to move forward.
- What is the seller's situation and do they need additional time to close? This is another helpful question as it allows you and your client to better cater your offer to their needs. I.e: if additional time may be needed to close, or to move out upon closing. Agents can potentially position their offer above another buyer who may be offering more in price.
- How the maintenance has increased in the past 5 yrs; how the building financials are overall; and whether there are any current or upcoming evaluations? All of these questions help better understand the health of the building and advise clients on how to move forward. Don't be taken aback by assessments/inspections as they demonstrate that the building is maintaining its health and condition; as long as there aren't assessments frequently (that can be flags for your attorney to dig deeper into).
2. Placing an offer.
It can sometimes take up to 72 hours to hear back from a seller, especially ones who are traveling. The most eager sellers, working with the most diligent brokers, often get back within 24-48 hours of receiving an offer. However, be cognizant of this and hold back from following up or checking in with the seller's broker every few hours. Azizian's principle is to send a text, a more personal form of communication, upon submitting an offer via email in order to confirm receipt by the broker, and then to call about 18-24 hours later if I haven't heard from the broker by then. There's no need to bug people, that doesn't build a great reputation.
Sometimes during pre-offer discussion with the seller's broker, the broker may ask what offer amount the client is planning to submit. Azizian utilizes these situations by providing a price range on the more conservative end to gain better insight into current buyer interests, as well as the seller's motivation to sell.
3. Advising the purchaser.
Upon speaking with the seller's broker and gathering further information, be sure to inform your client that the market value comes first and foremost and that the best understanding of how far we will be able to negotiate will come through placing an offer, and observing the seller's response. There's nothing that provides greater direction than receiving the seller's counter offer.
If a seller provides a counter offer close to the asking price it is generally a clear indication that the seller is unwilling to sell far from the asking price. Negotiating tips for buyers agents may then be to just pay the price, or walk away. It may also mean that the seller is disappointed with the low offer you submitted, and is responding as such to express that your offer is not found to be a serious one.
If a seller responds without a counter offer at all, it's a sign of the latter. Once again, if the seller finds your offer to be lacking in seriousness and consideration, they will not respond to it. Advising the client to submit an offer far from asking price, even in efforts to "test the market", positions your client at a severe disadvantage. Because, it leads the seller's broker to believe that your client isn't as interested or eager to move forward.
Regardless of response, it's helpful to call the broker upon receiving the counter offer. This way, agents are able to better understand the seller's response and decide whether there is additional room in asking price and how a deal is possible.
4. Negotiation tips for agents and concessions
Closing a home comes with closing costs, monthlies - maintenance and/or taxes, and an understanding of each party's situation. Generally in new developments, sponsors will provide a concession on the closing cost (cover their attorney fee, NYS and NYC transfer fee) in efforts to protect the price and uphold the project's value.
Similarly in non-new development buildings, sellers may appreciate flexibility with closing timelines in exchange for a slightly lower price. Or, offer to cover a few months of maintenance and/or taxes, or other ongoing assessments, in order to reach a meeting of the minds on price. Negotiations and crafting deals are far more than prices and it's important to recognize this.
Azizian's tips are priceless and will serve agents well when it comes to the art of negotiating.
Leah Azizian's Linked In and Instagram can be found here!
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