In the real estate negotiation the most frequent mistake that real estate agents commit is the lack of clarity in their words, because they are expressed in an inappropriate way. Their improvisation when talking with clients, makes them underestimate the force that their words have, ending up saying what they shouldn’t or the way they shouldn’t.
Expert real estate agents prepare each real estate negotiation beforehand: they know what they should say and how to say it, because they know very well that their words can be misunderstood by their clients.
It is not about expressing yourself as an academic; but to speak clearly and grammatically. It is about knowing how to argue, exhibit or present a property in a coherent and attractive way.
Everything is based on preparing the phrases, the words that are going to be said, structuring your ideas and doing some role play, of simulating the situation and speaking loudly saying what you are going to say.
For example, experienced real estate agents know that real estate negotiation begins with a customer’s first call. They know that using the wrong words will ruin a possible sale; therefore they take good care of what to say and structure their questions well so that they do not sound threatening.
The same happens when the real estate negotiation begins face to face and when a 2nd use property such as house for sale in Islamabad is shown.
The language (the words and phrases) used by the real estate agent influences the client’s thinking about the agent and the property. Let’s analyze the typical mistakes that most agents make in real estate negotiations.
|Typical Errors in Real Estate Negotiation.
For the experiment we studied errors observed in the negotiation techniques in Blue World City, One of the top residential housing project in Islamabad. These are the most common language and verbal expression errors of the less experienced real estate agents:
1.- A vague use of language. They use many pronouns, (this, that, that, there, here….), Instead of using the names or specifying the action or place. “What we see here is a plan …”instead of saying, for example: “This plan shows a 2 bedroom house …”.
2.- Use of comparisons that do not fit reality . A property characteristic is compared with another that is unrelated in the same context. Typical example: “It is better than …”. Better for who? The taste is relative.
3.- Use of abstractions. Use of verbs as if they were names
Express your opinion as if it were a proven fact, an absolute truth, when it is only an opinion. For example: ” buying this house is a real opportunity for …”
4.- Generalize a specific experience or event . For example: “The best local shops are located on the main street.” This fact tends to be true, but there are many cases in which it is not so.
5.- The use of words such as “should” “could”, etc. Conditional verbs do not sell; What they do is create a thought of criticism and doubt in the mind of the client.
6.- Budgeting facts. A common mistake among real estate agents. Budgeting what the customer wants, seeks or needs without relying on a logical reason, get thousands of sales lost every day.
7.- Focus on the negative instead of the positive. Clients will remember more a negative fact than a positive one, (a matter of self-defense), so that a characteristic or benefit associated with a negative fact tends to be interpreted negatively with a thought of “prudence”.
8.- Use the “I” instead of using the “we” in your sentences. The us means you + your client. You must involve your customer in the purchase.
These are just 8 examples of errors in argumentation, presentation and real estate negotiation. Although there are some more, I would like to briefly discuss how the questions should be asked.
Questions in Real Estate Negotiation.
A good question always gets a good answer. Good questions are smart and your goal is to obtain relevant customer information that is needed to help you buy. In addition to helping you create a conversation.
Asking questions wrongly is another common mistake made by inexperienced real estate consultants. Let’s not say “don’t ask questions”. The fear of asking questions must be lost and this is achieved, once again, with preparation.
Knowing how to ask questions is a skill that every advisor or agent must acquire in order to negotiate effectively. Open questions: “what”, “when”, “where”, “how”; These are questions that encourage information. The closed questions, where the answer can be a “Yes” or a “No”, by the client, creates an uncomfortable and distrustful environment in most cases.
Both types of questions are needed during real estate negotiation but it is the open questions that should be used the most.
Asking a customer “why” is very dangerous if a previous trust has not been established. The words “why” require the client an explanation and have a critical tone. You can ask “why” without having to use these words or use them in a context that is not threatening.
Improvisation is a bad advisor and is the main factor that an agent does not close as many sales as he could. I know from my own experience that preparing each meeting with a client, creating a script for incoming calls and conducting negotiation simulations is getting out of the routine and comfort zone. It is not easy to start, but there is no better way to increase the sales that you can close each month.
Imagine the following. For a month you show several properties to 12 people, that is to say an average of 3 per week , (agents generally show more homes per week) and you don’t close any sales.
What’s going on? This question has 2 answers: either you are attracting the wrong clients or you don’t know how to argue and present a property. Do not look for more possibilities because in the end they all come together in the first or second response.
If we rely on more or less reliable statistics, expert real estate agents sell to 4-6 customers out of 10 who contact them. For this reason they sell 1-2 properties per month, every month.
These expert agents do not improvise anything in real estate negotiation. There is no doubt that they cannot fully control the situation, but they can control most of it. They may not sell the property they are showing; but in they will lose the client to be able to sell others similar to it now or not.
Other Expressions to Avoid in Real Estate Negotiation.
1.- You must flee from the words that put your client on the defensive . I refer to words similar to problem, delay, breakdown or accident. Applying it to a phrase, instead of saying “ The problems with the new reform have been corrected” it is convenient to indicate that “ the new reform incorporates improvements and a new style of housing”.
2.- Try to eliminate the use of “no”. It is a word that has negative connotations, despite what is said to be positive. For that reason, phrases like “I don’t know” or “I can’t do it today” are best changed to ” I’m going to find out” and “I’ll have it ready for tomorrow” respectively.
3.- Related to the previous point, it is advisable to avoid negative phrases. For example, if financing is being negotiated, the sentence “ I know a bank that offers loans at good interest but with conditions ” should be replaced by: “I know a bank that offers loans at good interest”.
4.- Superlatives generate distrust. For this reason it is advisable not to abuse them. To qualify, it is better to rely on justifications and descriptions. If a seller indicates that ” This house is beautiful” it will be less credible than if you use “This house has a spacious and bright kitchen and the living room has an amplitude that is not easily found in other similar houses.”
5.- Flee from the adverbs “however” and “but.” They convey that whatever comes after them will be a negative thing. Therefore, instead of saying ” I could deal with the owner, but it will take two days” ; It is better to use “I will deal with the owner and it will only take a couple of days.”
6.- Do not use the imperative. It seems that an order is given and that an attempt is made to send on the other party. Therefore it is advisable that instead of using: “Prepare the contract for …” say: “We will need a contract for …” . In both cases it is intended that the other party bring a contract, but in the second, more indirect way , the aggression that can be caused to the other is avoided. Another remarkable example is to avoid the many times said: ” What you have to do is …” for a “What you should do is …”. The order is given in both cases, but using the last sentence gives the feeling that it is advice.
I hope these phrases help you close more sales and become part of your repertoire during real estate negotiation.
I would appreciate your leaving us a comment on this article. What phrase or words would you include in this list that should not be said during real estate negotiation? Your opinion interests us. Thank you.