One of the most important qualifications of an exclusive buyer agent (EBA) is the ability to negotiate. The comprehension of what is involved in the negotiating process does not make an agent a skillful negotiator. It also requires preparation and skill to be a great negotiator. Each negotiation will be different but there are keys to guarantee success and it also needs other areas of expertise learned over a long span of time. Do buyers need the buyer agents negotiating skills? What are the techniques and tips for a successful negotiation to purchase or sell a property?
This article provides powerful tips to help consumers find a good negotiator and what to expect in exclusive buyer agents’ negotiation skills.
Top 4 Negotiation Skills of Exclusive Buyer Agents
Here are some of the most important skills that consumers should look for in an exclusive buyer agent:
- Exclusive representation – First, the buyer will receive exclusive and full representation from an EBA. This includes handling the negotiation and presentation of the offer to the seller on behalf of the buyer. Exclusive Buyers Agents specialize in only representing buyers 100% of the time, in companies where all agents and brokers only represent buyers, not sellers.
- Buyer Protection – The EBA’s negotiating skills play a big role in making sure that the buyer will get the best terms and price of the home. They perform comparative (aka competitive) marketing analysis (CMA) in which they evaluate the prices of similar properties in the same area recently sold. The buyer picks a number within the CMA’s range based on their desire for that particular property. Then it will help buyers to avoid buying overpriced homes and possibly getting into trouble when it comes time to sell that property. Good EBAs have also developed special buyer protection clauses for their clients in the offer to purchase.
- Market expertise – An agent with complete knowledge of the market and with extensive experience will effectively negotiate. A carefully prepared price point evaluation or CMA is important, so the agents will be equipped and their clients can close deals successfully. Exclusive Buyer Agents who know the market well can easily provide backup choices based on the buyers’ needs and preferences. A good refrain is, “There is always another house!” and this mindset can help buyers control the emotion of falling in love with a particular house.
- Comprehension of the buyer’s needs – The agent who also has a clear understanding of the buyer’s needs and preferences can negotiate effectively. First and foremost, this involves listing skills.
The essential information that EBAs should know before beginning a home search on behalf of their clients are:
- Motivation and reason for purchase of the buyer
- Readiness and willingness to transact of the buyer
- A time frame of the buyer
- Financial capabilities of the buyer
- List of must-haves and preferences of the buyer
This checklist will help the buyer agent find the best property that matches the buyer’s needs and capabilities.
What Are Some Negotiation Techniques That will Land a Better Deal?
- Convey a positive attitude – The success of negotiation can be greatly influenced by the attitude that the agent shows other agents. An EBA who knows how to negotiate is polite, courteous and confident. Being calm and respectful often achieve a positive outcome for both parties. It is very important to have an EBA not just who is sharp but also has an engaging and friendly manner.
- Create rapport –The agent that can build rapport and can also communicate well, who will make the other party feel that both parties are “working together” as opposed to “competing with each other”. When a friendly relationship has been established, coming to terms with an offer will be much easier.
- Listen to the other party’s needs and requirements –A successful negotiation requires great communication. Being an effective communicator is the same as being a good listener. Good negotiators ask probing questions, listen, and take notes. This will help both parties to meet half way and bring both the buyer and the seller together to create a win-win situation for them.
- Have a realistic approach – A good negotiator is always practical in his/her approach. Good negotiators caution their clients against impossible terms that might feel disrespectful to the seller. They also know when and where needed to dispute. Sometimes people need to compromise to be able to come with a mutually acceptable contract. It is sometimes okay to settle if the demands are reasonable.
- Perform research –It is important for an agent to have a great knowledge of the buyer’s goals, wants and needs. It will help the agent know the underlying situation and motivation for each party. This can make a huge difference in how he/she will present and plan the offer.
These are a few simple questions an agent should consider for both parties:
- What are my client’s needs and requirements?
- What are my client’s options?
- Why the seller is selling and why the buyer is buying?
- What are the personalities am I dealing with?
- How many of the offers have been considered?
In general, the Exclusive buyers agents like the members of the Colorado Association have had decades of experience working 100% for buyers and they are some of the best negotiators in the country. A good negotiator may be the difference in what you pay for the house in the tens of thousands of dollars. In a strong seller’s market like in Colorado, an excellent negotiator is critical for even getting the winning bid on a home. The EBA requires great knowledge and also other skills gained from experience over a period of time, a minimum of 2 years.
Feel free to ask the association for a list of members who serve your area. The Association staffs are available 7 days a week to provide free consultations on the buyer agent selection process.
Consumers may visit the Colorado Association’s site to start looking for top exclusive buyer agents anywhere in Colorado. All consumers can also contact the association by visiting the Facebook page here.