January 24, 2022 | Selling
The Art Of Real Estate Negotiation: Owl vs. Pit Bull
Why you need an Owl, not a Pit Bull…
In the art of real estate negotiation there are many styles and it is often said that you need a Pit Bull in your corner. In the old school way of doing real estate, this was very true, but times have changed and open communication as well as collaboration is leading the way. These days the hard aggressive sell just isn’t as convincing as it used to be. We have learned that knowledge is power, and as the old saying goes, the pen is mightier than the sword.
When it comes time to negotiate the sale or purchase of a home these days, it’s in everyone’s best interest to collaborate and work together. No one appreciates a bully. Believe it or not, we sometimes still encounter a tough old school thinking realtor, who is less cooperative, offers little or no information assuming this is in the best interest of their client. This type of realtor is generally unpleasant to deal with and creates animosity from the start.
In today’s real estate world, agents need to cooperate with each other to ensure the process of buying and selling homes is seamless and less stressful for everyone involved. Buying a home is one of the most significant events in anyone’s life, and can be quite daunting. Working with sympathetic realtors on both sides, ensures the deal is fair and satisfactory to all parties involved.
★ Here are some must-reads for any buyers entering the market:
- How To Win A Bidding War In Toronto
- The Real Estate Debate: Should I Sell Or Buy First?
- First Time Home Buyer’s Guide
The Owl vs. The Pit Bull
In conflict management theory, there are 5 styles of conflict resolution and in real estate the Owl is the one you need. Owls view conflict as a problem that needs to be solved.
When your realtor is an owl, you can expect a winning approach:
1. Collaborate to reach solutions
Owls ensure both parties’ goals are achieved. Though this can take time and effort, when both sides achieve their goals, tension is eliminated and a successful transaction is ahead. We love when we encounter like-minded owls on a home sale or a home purchase. Win win!
2. Meet them where they are at
In a multiple offer, for example, the listing agent is in the driver’s seat and the seller has the final say on who’s bid is accepted. When we say meet them where they are at (another important Owl strategy) we are referring to reading your opponent and going with the flow. Sometimes the best way to make sure you stay in the running is make sure the seller and their agent do not feel challenged on the small stuff. Is the agent old school? Roll with it. Silly requests on timing or paperwork? Just do it. Of course we aren’t recommending giving up your negotiation tactics, we are simply advising to choose your battles wisely. If it truly is an inconsequential ask, in the big picture, like the aforementioned paperwork, compliance is your best move. Stay firm when you need to, but do it nicely. You know that saying, “speak softly but carry a big stick” That is what we are getting at….
3. Look for smart compromises
Find out what is important to the other party, if it’s not a big deal on your end, let them have it. The Owl in this scenario will advise you to go with the flow, and work with you to determine what is negotiable for you and what is not. A little goes a long way!
4. Leave the ego at the door
An Owl realizes that communication is important and real estate transactions should be approached with a collaborative attitude. A realtor who doesn’t take anything personally, who can keep the big picture top of mind, (your home goals of course!), will be your best partner in a multiple offer scenario. They will know when to draw the line and likely recognize when they are dealing with a Pit Bull and how to manage everyone’s expectations.
The savvy realtor of today knows the advantage of open communication and cooperation. Our most successful transactions have been with likeminded realtors, working together with a joined goal in mind – happy clients and a successful result. This spirit of cooperation always ensures a smooth sailing with very few hiccups along the way. In the end, everyone has your best interest in mind.
★ Here are some must-reads for anyone thinking of selling this year:
- Cost of Selling A House In Toronto
- Selling Your Home In The Age Of Online Marketing
- Top 5 Staging Tips To Help Sell A Home For More Money
Why is conflict management important in real estate?
Conflict is a natural part of any workplace, and it arises for many different reasons. In our industry, we often see it from a lack of communication and a fast paced, ever changing landscape.
Residential real estate is highly personal, it is not just a sale or an ordinary purchase. There are a lot of feelings and emotions involved. This is someone’s family home, perhaps a home that has been in the family for many decades. The circumstances of a home sale aren’t always just to move to a better home, it could be the death of a loved one, the end of a relationship, a financial hardship etc. The communication requires great tact and empathy when working with clients in these situations. No one wants to feel taken advantage of, or as though the other party has a one up on them. Deals go sideways quickly when either party gets their back up or has an ego. We’ve encountered this often with old school realtors and it’s never easy.
Real estate negotiation starts way before the offer table. Clear and open communication between agents keep everyone felling like they are on an even playing field and they are, when transparency is prioritized. In this industry, we have many allies and great colleagues with a similar mindset and communication values. We will often call each other about a new listing we have coming up or get a sense of market changes they are experiencing. This type collaboration is what we love about real estate. Working together to find the perfect home or an ideal buyer is what we do, and we can’t do it without our colleagues!
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