Effective negotiation skills set top real estate agents apart. The National Association of REALTORS® 2023 Profile of Home Buyers and Sellers shows that nearly 25% of buyers want negotiation help the most, and 40% see it as a key benefit from their agent.
Negotiating well is both an art and a skill, combining strategic thinking, confidence, and a solid grasp of market trends and human behavior. By honing these skills, agents can improve their performance, build stronger client relationships, and stand out as expert negotiators.
Here are 15 essential tips to help real estate agents sharpen their negotiation strategies and close deals more effectively.
1. Learn about your market
Understanding current market conditions, including trends in pricing, inventory levels, and competition, is crucial. This knowledge provides leverage during negotiations, enabling you to present compelling arguments, whether you make an offer or counteroffer.
2. Know what you want
Define your client’s goals and priorities before even thinking about beginning negotiations. Knowing what your client hopes to achieve regarding price, terms, and timeline will guide your strategy and keep you focused on what truly matters.
3. Understand the other agent
Agents might be negotiating on behalf of their client, but how they negotiate is all about them. Spend some time assessing the agent on the other side of the table – what type of personality do they have and what will they respond positively or negatively to? What’s their background, have they done many deals and do they know the neighborhood well? All of these insights can help you tailor your negotiation strategy to the benefit of your client.
4. Use the mirroring technique
In negotiations, mirroring—subtly imitating the other agent’s behavior and communication style—can be an incredibly effective technique. By reflecting their tone, gestures, or speech patterns, you create a sense of connection and understanding, which in turn can make the other party more receptive to your proposals.
5. Keep calm
Even in high-stakes negotiations, it’s essential to remain calm and composed. Avoid emotional reactions, which can derail negotiations.
6. Take your time
Be strategic about when to make offers, counteroffers, or concessions. Understanding the other party’s deadlines or motivations can give you an edge. For example, if you know a seller is eager to close quickly, you may have more room to negotiate on price.
7. Think ahead
Take the initiative in negotiations. A proactive approach means anticipating and addressing potential objections or challenges before they escalate. Communicate clearly, stay positive, and focus on solutions. Being proactive helps you maintain control over the negotiation process and positions you as a confident leader.
8. Silence is golden
Active listening is a powerful negotiation tool. Prioritize listening over speaking to uncover areas of shared interest and opportunities for compromise. Embrace the power of silence—don’t fear the long pause. Agents who are uncomfortable with silence often make their biggest mistakes by trying to “fill the space” with more words. This is where expert negotiators gain an edge.
9. Offer several solutions
This foresight will facilitate an agreement by demonstrating that you are willing to work together to find a mutually beneficial outcome.
10. Keep the conversation flowing
Ask questions to encourage the other party to share details that can help you negotiate effectively. Instead of making demands, frame your needs as questions, such as “What would it take for us to meet in the middle?” This strategy keeps the conversation collaborative rather than confrontational.
11. Use the anchoring technique
This involves establishing an initial reference point that shapes the course of the discussion and influences the final agreement. In real estate, the listing price or first offer often serves as this anchor, setting expectations and guiding counteroffers.
12. Bargaining tools
When you offer something, the other party often feels obliged to return the favor. Small concessions can encourage similar gestures in return, building goodwill and trust. For example, if a seller includes some furniture or appliances in the deal, the buyer might be more inclined to agree to a higher purchase price or be more flexible with the closing date.
Agents should also see the full picture, not just the initial offer, and be strategic in their bargaining. Know when and how to position your requests—pushing too hard on price can put you at a disadvantage in repair negotiations.
13. Take note
Make sure you keep track of all communications, offers, counteroffers, and agreements. To keep everything organized, it’s a good idea to create an organized system where you can record each communication, and file in a database to refer back to when you need it. A paper trail prevents misunderstandings and ensures all parties are on the same page. It also protects your client’s interests and is a reference point if disputes arise later.
14. Understand your client’s deal breakers
While it’s easy to get caught up in securing a win, it’s more important to be aware of your client’s bottom line – and to be prepared to walk away from the table if the deal is not the right fit for them.
15. Learn from experience
Take time to reflect on past negotiations to identify what worked well and what didn’t. Use this to improve your negotiation skills continuously.
Online Courses
There are a number of negotiation courses available online for those who want to dig deeper when working on their negotiation skills – take a look at the below options.
Harvard Business School
Negotiation Mastery – 8-week Online Course
National Association of REALTORS®
Real Estate Negotiation Expert Course – 2-Day Course
Real-Life Real Estate Training
The Art of Negotiation – Self-Paced
Essec Business School (through Coursera)
Negotiation Fundamentals – 7 Hours
The CE Shop
Build your Negotiation Skills – 3 Hours
University of Michigan (through Coursera)
Successful Negotiation: Essential Strategies and Skills – 17 Hours Self-Paced
