There are three phases of a property purchase. The first phase is discovering the perfect seller, which you can do through marketing and advertising. The second phase is contacting them and following up to work out a deal. Phase three is confirming the purchase when both parties have agreed to terms and conditions. There are text message solutions for real estate agents that can help you manage multiple deals at the same time too.
A good negotiator will try to conclude the deal during every phase. The process ends when everyone agrees on a decision and is willing to proceed with the transaction on those terms.
The most important skill for a real estate agent is to become an expert closer. You should assess every situation and every potential buyer individually to come up with the best strategy. When negotiating, there are multiple approaches that work best in different situations, we will go over them in this article.
The Soft Close
A soft close is a way to test potential buyers. The goal is to have them respond with feedback which will help you know whether or not they are interested in continuing the negotiation process. You want the inhibition of the buyer to be lowered so that agreeing to the deal will not be difficult.
Try asking a simple question that almost always receives a positive answer. A perfect example would be to ask something like, “Can I talk to you for a bit?” This phrase helps condition the person to say yes and will make it easier for them to say yes to you in future requests.
The Direct Close
This style of closing should only be employed when you can read the client like a book and you know that all they need is a little nudge to make a payment. At this point, you’ve formed a connection with the client and you can predict what their next responses will likely be. So to hasten things up, you can say something in the form of “This is just what you need. Why don’t we begin the paperwork right away?”
Now there’s no turning back and the client is put in a position where their next move is to either accept to proceed with the deal or back out. But whichever turn things take, you would have succeeded in getting the client to speak their mind instead of beating about the bush.
Sometimes you just have to tamper with the perfect picture a client has created about a property in order to spur them to action. How can this be done? Simple! If your client is dragging their feet about closing a deal, try to find out what they love most about the house, maybe the jacuzzi or pool, and offer to remove it for a discount.
The thought of losing that precious feature will take their minds off the price of the property and instead focus on saving the feature. In the end, they’ll likely prefer to pay the full price rather than go with the discount offer.
Sharp Angle Closes
As the name suggests, it’s a quick affair. Just give the client what they want and in exchange, the dotted lines are signed. The client may request a discount or ask that some improvements be made to the house, if this sounds good to you, why not? But here’s where you add your own condition – they must be willing to sign the agreement that instant. If everyone is in agreement, the deal is done!
The Hammer Close
We saved the best for last – the Hammer Close! From the name of this business strategy, you can tell that it comes with a bit of force. When all the other methods fail, this should be your last resort. But there’s a catch. The hammer close is only effective when the client is still showing interest in the deal. After you notice that, then it’s time to wield the hammer and launch a not-so-gentle call to action.
Something like this won’t be out of place – “Let’s not drag this deal any further. We both know that this offer is beneficial to both of us. Tell me where to forward the paperwork and I’ll send them over immediately!” While this close is very forceful and, of course, not for the fainthearted, it can tilt the direction of the business conversation positively and speed up the transaction.
Knowing the art of closing is what differentiates professional real estate agents from amateurs. While it’s a wonderful title to be known by, the process of mastery can take months and even years. So, go easy on yourself if you’re not there yet. With the strategies we’ve already listed in this article, you can get started on your journey to becoming a renowned real estate closer. Take them seriously and in no distant time, the number of your closed deals will skyrocket.