Written by: Katherine Rundell
Published: September 17, 2020
For any real estate agent, negotiating an investment and finalizing the deal can be the most rewarding part of the process, but it can also be the most delicate. Closing on a real estate deal is the final step in securing a contract with a buyer, so it is vital to approach it carefully and strategically.
Seasoned or not, any real estate agent can struggle to find the right technique to finish negotiations with a buyer and secure the deal. This triumphant feeling of closing a deal is a thrill only enjoyed by those real estate agents willing to take the necessary risks by finding the perfect technique to end negotiations with each particular client.
Why the Right Closing Technique Is So Important
To do this, there are a variety of methods for successfully closing a real estate investment to incorporate in the transaction and benefit the seller and buyer alike. The techniques you use can either make the process of closing a mutually beneficial experience or cause the process to drag on or come up against new hurdles. For this reason, choosing the right technique is invaluable for closing any deal and completing the buyer’s journey to homeownership.
Effective Real Estate Negotiation Closing Techniques
1. Yes or Yes
When you are presenting an offer on a real estate investment to a potential buyer during negotiations, give them multiple options to choose from, all of which lead to closing. This will give them the sense of being in control of the process, despite all of their choices ultimately leading to the same conclusion. By giving the buyer several options, they feel like they have the power even though their choices are actually limited by the parameters set by the buyer.
2. The Ticking Clock
Sometimes all a potential buyer needs is a little push. Adding the pressure of a time limit on your offer can give them just that. Creating a sense of urgency can make the buyer feel they have to act now, or they will lose out. Try using the current real estate economy to accelerate the deal process, such as reporting decreasing home prices or increasing interest rates as incentives to act quickly.
3. Sleep on It
For some potential buyers, adding a time crunch is not the right move. If they are unsure or apprehensive to sign the deal, release the pressure a little to allow them time to think. Providing them with a short period of time to think over the deal before making a decision is comforting and makes the seller appear to be generous in granting them this extra time. “However, it is important with this method to be clear about the limited time you are giving them, so they are still motivated to make a decision,” suggests Mike Lowe, real estate blogger from Essayroo and Paper Fellows.
4. Walk the Walk
Being upfront with your clients about all of the finer details of the deal you are offering is a great way to gain their trust. You will come across as sincere and professional by fully disclosing information about the buying process and the specific deal. This is essentially the same as the “justify your offer” technique, in which you tell the buyer about all of the costs, the state of the property, and so on, so they feel as though they have the upper hand. It’s true what they say—knowledge is power. By putting the ball in the buyer’s court, they will be motivated to follow your expert guidance and trust that your offer is genuine.
5. Make It About Them
Everyone wants to feel special, so do your best to make the buyer believe that they are being treated as a one-of-a-kind individual by making sure they know the deal is all about them. They should be told all the benefits of signing the deal and possibly even offered bonuses for further incentivization. “Every buyer is looking to get the most out of any given deal, so ensure they know exactly why they should sign with you over someone else,” says Marie Glover, a journalist at Australianhelp and State Of Writing. This is similar to the sharp angle close, whereby the seller enters negotiations expecting the buyer to ask for a bonus or additional incentive and is prepared to accept under certain conditions which, in return, benefit the seller. For example, if the buyer wants the closing costs to be covered, it may be in your best interest to agree but only if they sign immediately.
Katherine Rundell is an entrepreneur and a writer, contributing to Law Essay Help and Dissertation Help. She manages sales and marketing projects and believes that success in today’s competitive business world requires cultivating a diverse portfolio of expertise in a variety of professional spheres.