Brock Rasmussen gives 5 Negotiating Tips to Get the Best Deal for Your Client
The objective of negotiating scenarios in the realm of real estate is to secure a price your client will approve of, and landing a final result that both parties agree upon is often no easy task. Commercial agents who are able to drive hard bargains using top-notch negotiating skills will inevitably score better deals for their clients and turnover heftier commissions for themselves.
During his time as a commercial real estate agent for Lee & Associates in Fort Myers, Florida, Brock Rasmussen has refined the negotiating skills needed to excel in commercial real estate. To help equip fellow agents with the tools necessary to boost their careers, he’s compiled these practical tips for negotiating client-buyer transactions.
Understand the Client’s Desires
The first essential step to securing a deal that pleases your client involves an understanding of the client’s priorities and desires. Before the negotiation process begins, agents must be sure they have a solid perception of their client’s expectations and needs. This takes the guesswork out of goal setting and helps protect the agent from mis-stepping during the negotiation process.
It should be noted that often, clients do not take the initiative to fully communicate their vision or desire for the negotiation’s outcome. Thus, it is the agent’s job to ask the right questions, search for answers, and listen carefully to the client’s responses.
Sellers will be reluctant to negotiate openly with an agent they don’t know or trust; when an agent takes the time to gain rapport, the other party is more inclined to demonstrate flexibility and open-mindedness during the negotiation processes.
Brock Rasmussen recommends that rapport can be gained in simple venues like courtesy and manners. Gestures such as showing up to meetings on time, keeping your word, and valuing the other party’s time are all small measures that go a long way in gaining trust.
When the other party feels a mutual respect in the professional relationship, the negotiating process becomes more comfortable. It is also more likely to yield the kind of returns that both the agent and the client will benefit from.
Develop a Multi-Faceted Perspective
All successful negotiators achieve their goals by appealing to the other party’s needs.
Brock Rasmussen notes that gainful negotiation between two parties will always require a duality of perspective on the agent’s part.
Agents that can fully understand the other party’s desires and motives will be better capable of appeasing them and negotiating a better price for their clients. If an agent can fully perceive the requirements of both parties, he can more easily land upon an agreement which suits them both.
Define Your Goals
Before the process begins, Brock Rasmussen recommends that agents first concretely define their goals for the negotiation. By walking into the interaction with mental boundaries firmly set in place, agents ensure they will not make compromises that will hurt or disappoint their client in the long term.
This goal-setting process includes designating an optimal price to strive for as well as a bottom-line number. Should the negotiation be pushed past this bottom line, the agent will know that walking away from the negotiation is what is in the client’s best interest.
Although mentally establishing this “walk-away” point should never encourage a negotiating agent to settle for a less-than-ideal agreement, it does help prevent the agent from blundering in the moment and making a decision that will negatively impact the client.
Expect the Best and Exhibit Confidence
An arrogant composure is likely the quickest way to damage a negotiation, but confidence will propel it forward. All successful negotiators are optimists. They expect more, and therefore they get more. They never enter a negotiation with a fixed disposition for settling. Instead, they aim high.
This skill is one that requires balance and practice to perfect. During negotiations, the other party will be sensitive to agents who have over-accentuated attitudes of ego. This will inevitably result in defensiveness or inflexibility. Brock Rasmussen realizes that displaying confidence and optimism in interactions requires walking a fine line, but with patience and practice it will end in better deals for the client and agent alike.