Thursday, May 1, 2014

The Art of Real Estate

Well after 28 years in the forestry business, I changed careers. When my brother found out I was transitioning into the real estate business, he said “Boy are you in for a surprise”  Boy was he right!  My job went from managing people and resources to a position of marketing, contract negotiations and brokering deals. There are some similarities in these task, they are negotiating and people skills. I must say I came into the career quite unaware and in some ways unprepared. It has been 8 years of learning on the job. This is a people business and I believe the career breaks down into 2 categories:

1) People Skills – Let’s start with a definition -   understanding ourselves and moderating our responses, talking effectively and empathizing accurately, building relationships of trust, respect and productive interactions. Generally people want to be treated fairly and feel like they are important. In many instances we are working with a buyer and a seller so both have to be treated with respect while keeping the goal in focus…consummation of the real estate transaction. I really believe in the Golden Rule, treat others like I would like to be treated. It works every time!

 2) The Art of Negotiating – Negotiating is defines as  a dialogue between two or more people or parties, intended to reach an understanding, resolve point of difference, or gain advantage in outcome of dialogue, to produce an agreement upon courses of action, to bargain for individual or collective advantage, to craft outcomes to satisfy various interests of two people/parties involved in negotiation process. Negotiation is a process where each party involved in negotiating tries to gain an advantage for themselves by the end of the process. Negotiation is intended to aim at compromise.  

5 Things That Will Help You Negotiate Better
1. Listen - Listening is a fairly underrated skill in today’s world. It’s so easy to assume what others are saying OR  finish what others are saying for them. Listening entails making sure what you’ve heard is actually correct.
2. Seek An Outcome That Satisfies All Parties - How many times are you so focused on getting what you want in a negotiation, you don’t even think about the other person? Some times referred to as “Win-Win”, look for commonalities. A win-win outcome really is the best way to approach negotiations. When you can share a common interest or find a common ground with another person, they'll have a harder time being confrontational with you. Show real interest in the property they have for sell.
3. Broaden The Scope - Sometimes when we're in negotiation we get so centered on the one thing—we forget there might be other possibilities. For instance, if the seller won’t reduce the price, they might consider paying some of the closing cost or perhaps pay for the survey. Don’t get backed into a corner. Recognize that people often ask for more than they expect to get!
4. The Person With The Most Information Usually Wins - This is a particularly important negotiation tactic for sales people. Ask your prospect  questions about their motivation to buy or sell.  Learn what is important to them as well as their needs and wants. Plain and simple, be an expert in your market. I am a ‘Land Broker’ and I keep detailed sales data in the counties I work. Taking a listing that is 30% over the market is a waste of time and besides, if an uninformed buyer comes along, it will not appraise and the deal will fall apart anyway.
5. Maintain Your Walk Away Power – As a seller or real estate broker it is better to walk away from a sale rather than make too large a concession or discount your services. I recently had the opportunity to list a large tract of land. The owner offered ½ the normal commission and I walked away. Later I was able to negotiate a fair commission. 

Well in simple terms to be successful as a realtor (or most anything in life), 3 things will go a long way:
  •        Be honest with people
  •       Treat others like you like to be treated
  •       Work hard, that means going the extra mile, returning phone calls, be early to meetings

If you will do these things, YOU WILL BE SUCCESSFUL

For Information on Buying or Selling  LAND,  Call G. Kent Morris, RF, ALC

at (706) 457-0090