When the commercial property market becomes slower or tougher, the negotiations that you undertake as a Real Estate Agent become more critical. Every negotiation needs to be planned and optimized; practice will help you as the commercial agent convert more positive results from each and every negotiation.
In this property market negotiations occur at a number of levels, and not just at the end of the sale or lease process. Most particularly they are the negotiations:
With the property owner at the time of seeking a listing
With the property owner regards the marketing campaign and vendor paid advertising
With the prospective buyers or tenants that make initial enquiries from the marketing campaign
With buyers or tenants as you take them through the property as part of the formal inspection process
With the prospective buyers or tenants as you move them to finality on a written form or contract or a lease offer.
With property professionals such as solicitors, accountants, and financiers How To Buy A House With Furniture that may be involved in moving the property transaction to finality
All of these people have a vested interest in the property itself and a point to negotiate from. Some of these people act for your client so sensitivity is required.
The best commercial real estate agents will normally consider the alternatives of the parties prior to entering into the final negotiation. You have to know where the other party is coming from. This forward thinking allows strategies to be available should the negotiation become difficult or slow.
So the critical tips or processes involved in negotiation include the following:
Be prepared for the negotiation from the outset. This means that you need all the information about the property and the people at your fingertips should any unusual circumstances or questions arise.
When an unusual hurdle or problem develops, take the time to ask questions of the other person so you can fully understand their position. The more questions you ask, the easier it is for you to work through the particular challenge. This question and answer process is called a ‘Freudian Slip’ and is used by all experienced salespeople. With the right questions you will get the correct answer to the challenge that exists.
At the appropriate points of the discussion, take notes of any critical factors or key points. Written evidence will always help you keep the momentum moving ahead and prevent any disagreement in the property transaction.
All negotiations where possible should occur face to face and not over the telephone. Do not take the easy way out when it comes to discussing final details or counter offers. It is very easy for the other party to decline or refuse the offer when it is made over the telephone.
The best way to move the negotiation forward is on a written offer of contract or lease. If the negotiating party is genuine, they will have no problem in putting the offer together on paper. If on the other hand they are reluctant to sign a written offer for you, then you know that something is not as it appears.
Make sure you understand the legalities that apply to creating a contract or lease on the subject property. Incorrect or misrepresented documentation can create a minefield of problems as you move ahead. It is not unusual for litigation to be the outcome of poorly prepared documentation.
Remember who your client is in the process of the property transaction. The client has to be treated fairly and professionally given your relationship with them Real Estate And Facilities Management Jobs as the agent. You also need to follow their instructions. They need to be fully briefed on every stage of the transaction as it moves towards finality.
When a property contract or lease has been created and is enforceable, ensure that each stage of the transaction is suitably monitored, qualified, and satisfied. Far too many agents leave the transaction momentum to the client’s solicitor to complete and settle. This can see your negotiated deal stall. You are the person to follow and push the deal to finality.
Be prepared for the negotiation using these tips and others that apply in your local area given the property type. Use third party evidence and information to support your negotiation with critical facts that help maintain the momentum of the transaction.