One of my favorite parts of real estate is negotiating.
I enjoy it because every negotiation is different. Different people. Different priorities. Different circumstances. And often, decisions need to be made quickly.
There isn't one negotiation strategy that works every time.
The skill is being able to read the situation, understand the priorities and leverage, communicate effectively, and adjust your strategy accordingly.
Start With What Actually Matters
Before you can decide how to negotiate, you need to understand what matters most to the people involved.
Price is obviously important, but it isn't always the only priority.
A seller may care about certainty because they've already purchased another home. A buyer may need a particular closing date. One party may be comfortable taking on more risk while another values predictability.
Understanding those priorities can help shape the entire negotiation.
And sometimes you learn what's important simply by asking the right questions and listening carefully.
Understand Where the Leverage Is
One of the most important parts of any negotiation is being realistic about who has leverage.
And sometimes, it isn't you.
If you're a buyer competing against multiple offers for a highly desirable home, the seller may hold most of the leverage. On the other hand, if a property has been sitting on the market and the seller hasn't received much interest, the balance may look very different.
Leverage can also change throughout a transaction as new information becomes available.
Good negotiation isn't about pretending you have leverage when you don't. It's about understanding the position you're in and deciding how to respond strategically.
If my client has leverage, we need to decide how and when to use it. If we don't have much leverage, we may need to think carefully about which terms matter most, where we can be flexible, how much risk we're comfortable taking, and what we're willing to do to accomplish the larger goal.
Negotiating Isn't Always About Price
It's easy to think of real estate negotiation as simply a buyer offering one number and a seller countering with another.
There's much more to it.
Closing dates, financing, contingencies, inspections, deposits, included items, flexibility and certainty can all have value in a transaction.
That's why the highest offer isn't necessarily always the strongest offer, and getting the highest price isn't necessarily the only thing that matters to a seller.
Understanding the whole offer, rather than focusing on a single number, gives you more ways to structure an agreement that works.
The REALTOR® on the Other Side Matters
This is an important part of negotiation that consumers don't always see.
The agent on the other side isn't my opponent.
My responsibility is to advocate for my client, but the other REALTOR® and I still need to communicate effectively if we're going to find a path toward an agreement.
That doesn't mean giving something away or avoiding difficult conversations. You can advocate strongly for your client while still being professional, responsive and straightforward with the other agent.
In fact, good agent-to-agent communication can sometimes uncover information that helps both sides.
What matters most to the seller? Is there a term that's creating a problem? Is there something my client can offer that has more value to the other side than it does to us?
A productive working relationship makes it easier to have those conversations and look for solutions.
Know When to Push and When Not To
Being a strong negotiator doesn't mean pushing on every issue.
Sometimes you should hold firm. Sometimes you should ask another question. Sometimes a relatively small concession can help your client achieve something much more important.
And sometimes the best advice I can give my client is not to push at all.
Imagine a buyer has found a home they love and there are several other offers. If the seller has most of the leverage, taking a hard line on something relatively minor could jeopardize the buyer's larger goal of getting the house.
That doesn't mean agreeing to everything. It means understanding the tradeoffs and making an intentional decision.
Good negotiation isn't about being aggressive. It's about being strategic.
Real Estate Negotiations Can Move Quickly
Another challenge is that real estate negotiations don't always give you much time.
Offer deadlines can be short. Multiple offers can appear quickly. Inspection issues, appraisal questions or unexpected circumstances can change the negotiation after a property is already under agreement.
My job isn't simply to react quickly.
It's to help my clients understand what's happening, what their options are, and the potential consequences of each choice so they can make a thoughtful decision, even when there isn't a lot of time to make it.
What Does It Mean to “Win” a Negotiation?
I don't think a successful negotiation means getting every single thing you asked for.
It means helping my client achieve the outcome that matters most to them on terms they're comfortable accepting.
For a seller, that might mean maximizing price. It might also mean minimizing risk or having a closing date that works with their next move.
For a buyer, it might mean getting the house in a competitive situation. In another transaction, it could mean protecting themselves through an important contingency or knowing when the right decision is to walk away.
That's one of the reasons I enjoy negotiating so much. Every situation requires you to listen, assess what's happening, communicate well and determine the best strategy for the person you're representing.
There isn't one playbook that works every time.
And that's exactly the point.
If you're thinking about buying or selling a home and have questions about what negotiating might look like in your situation, please reach out. I'm always happy to help.
