As real estate agents we have an important role to play in helping our clients navigate the negotiation process. I understand the power of negotiation tactics and have seen firsthand how they can be used to maximize my clients’ interests. I strive to empower my clients to be prepared and understand how to use these tactics to their advantage. Here are nine effective hardball tactics that I use to protect my clients in a real estate deal.
1. Move First: Moving first in a negotiation gives the client the upper hand. It allows them to set the tone and the parameters of the conversation.
2. Make a Take-It-or-Leave-It Offer: A take-it-or-leave-it offer is a tactic that puts the ball in the other party’s court. When making a take-it-or-leave-it offer, the client is essentially telling the other party that they will not budge from their offer. The client has to be willing to leave the deal though.
3. Make a Lowball Offer: Making a lowball offer is a tactic used to gain an advantage in a negotiation. When making a lowball offer on a property, the client is essentially offering the seller a price that is much lower than the asking price. This can work to their advantage in certain situations, but it is important to understand that some sellers may be insulted by such an offer and simply walk away.
4. Use the Fear of Loss: The fear of loss can be a a powerful negotiation tactic that is used to motivate the other party to accept the client’s offer. This is usually used when you have a property that has been on the market a little while, and knowing the seller is in a little trouble.
5. Create a Sense of Urgency: Creating a sense of urgency is a tactic used to motivate the other party to make a decision quickly. When negotiating a real estate transaction, this could mean emphasizing how quickly the market is changing (rates) or how quickly similar properties in the area are being sold, or the fact that your client needs a home now and will go to the next one if they are not able to react quick enough.
6. Walk Away: Walking away from a negotiation is a very powerful tactic that can be used to gain an advantage. The key is to give as little information as possible as an uninformed foe typically comes up with scarier reasons your client is not responding. This is always to your advantage.
7. Ultimatum: Making an ultimatum is a tactic used to set a deadline for the other party to make a decision. This could mean setting a deadline for the other party to make a counteroffer or threatening to walk away if the counteroffer isn’t acceptable.
8. Make Small Concessions: Making small concessions is a tactic used to show the other party that the client is willing to negotiate. In the real estate world, this could mean offering small concessions on price, earnest money, inspection timelines, etc. in order to get the deal done.
9. Play the Blame Game: Playing the blame game is a tactic used to shift the focus of the negotiation away from the issues at hand. This could mean blaming the market conditions, the economy, or the parents, for not being able to come to an agreement.
By understanding these hardball tactics, my clients can be better prepared to navigate the negotiation process. As their real estate agent, I help them understand how to use these tactics to their advantage and get the outcome they are looking for.