How “Good” are the Negotiating Skills of Your Agent?
Although it seems a fairly essential question to ask your agent before you decide to work with a REALTOR® in what is likely your largest single purchase, in my 25 + years in Real Estate and thousands of transactions, I recall having been asked only about a dozen times.
More importantly, (to you the Home Buyer) How is the negotiating competence of your agent affecting your home purchase and your financial well being?
Let me show you in a very simple example:
If you intended to buy a property, and after much negotiations, the seller will not budge more than $ 500,000 as their bottom line…..
What if your REALTOR® was successful, by applying superior negotiating strategies and techniques, to shave as little as 1/2 % of the sale price for an immediate saving of $ 2,500 (pretty good already) but if you amortize that over the life of the mortgage that savings will amount to nearly $ 7,500. (now that is serious money).
How about asking for and negotiating for even better discounts, better terms, and or other concessions…..
What if your Master Negotiator (your REALTOR®) was also able to have the seller pay for some much needed repairs/ upgrades, included a few extra items and paid for some (or all) of your transfer taxes and or legal fees. (nobody can guarantee this will be possible in all negotiations, but most won’t even try).
You can see how quickly the savings can add up to a huge amounts (easily in the tens of thousands worth of direct and or indirect benefit to you) without much more than applying negotiation skills that most typical REALTORS® do not obtain in their typical REALTOR® training programs.
Here is what a little research in the USA revealed from the NAR 2011 Profile of Home Buyers about consumer’s thoughts on a REALTOR®’s negotiation skills:
- 99% of Buyers believe negotiation skills are “Very Important” or “Somewhat Important” in their REALTOR®
- Only 37% of all Buyers felt their REALTOR® “negotiated a better price”
- Only 44% of all Buyers felt their REALTOR® “negotiated better sales contract terms”
- Buyers give “Negotiation Skills” the lowest satisfaction rating of all REALTOR® skills and qualities.
So Why Aren’t Home Buyers Satisfied with their REALTOR®’s Negotiation Performance?
Well, "Not All Agents are Master Negotiators"…. and
Most Buyer’s, Don’t Ask about their Agent’s Negotiating Skills, BEFORE, they decide to work with them.
Now that you know to Ask about your Agent’s Negotiations Skills…..
and Provide you a Cash-Back Commitment at the Same Time for Additional Savings.
not intended to sever written agency relationships