<<LEGAL EASE, CONTINUED FROM PAGE 16


typical real estate negotiation? There are two different roles the agent should play. The first is that of a trusted advisor who: a) gives clients the information they need to be prepared for the negotiation and make smart decisions; and b) is a calm, rational counterweight to clients some of whom are stressed, are not thinking clearly or have unrealistic expectations when it comes to buying or selling homes. Buying and selling a home can be an emotional, stress -


ful time. There is excitement but often anxiety about moving to a new home, a sense of loss in leaving an old home and fear of making a mistake in buying or selling a home (usually on price and the location of the home). Being the calm voice of reason and the source of accurate information helps give clients the confidence they need to get through the negotiation successfully. On the issue of clients having unrealistic expectations, REALTORS® regularly encounter sellers who think their houses are worth more than they are and buyers who think sellers will jump at low ball offers. The good real estate agents are the ones who are reality checks for their clients, ed - u cating them on the state of the market, the likely value of the properties they are negotiating to buy or sell, comparable home sales and how the negotiation game is generally played in the local market. While REALTORS®


need to advise clients and give them


the information they need to be successful in the nego - tiation, it should always be remembered that it is the client’s negotiation. The client should decide what to offer and when and what to accept and not accept. REALTORS®


transactions in an effort to find common ground. Some REALTORS®


are so worried they may reveal some -


thing that damages their client’s position, they end up saying nothing at all about their clients’ needs, wants, goals and preferences. Such agents are abdicating their roles and are essentially leaving their clients to negotiate in the dark. While the partiesmy eventually stumble upon a deal that is acceptable to them, it is usually because of luck rather the negotiation skills of the real estate agent representatives. So, how should a REALTOR®


the other agent? To start with, REALTORS®


go about negotiating with should ask


their clients if there is any information that they either do or do not want to be revealed. REALTORS®


should encourage their clients to reveal should be


careful never to exceed the verbal authority given to them by their clients to negotiate on their behalf. How - ever, REALTORS®


whether the client has special needs, such as a need to be in or out of a property by a particular date. This type of information generally goes to the heart of getting the deal done and thus, addressing the need outweighs whatever minor leverage the other party may gain in being told the information. Real estate negotiators should also regularly ask the


should never substitute their goals for those


of their clients or judge a potential transaction against any standard other than whether the client is satisfied or not with the deal. The second role of a real estate agent is to be the


client’s spokesperson. Astute clients recognize the value of having someone knowledgeable negotiate on their behalf. In negotiations over the purchase or sale of a home, there are sometimes difficult messages that must be communicated if one party or the other has un - realistic expectations. This is usually best done by the representatives of the client rather than face-to-face between the clients. As an aside, this is also why so few real estate transactions where neither party is repre - sented by an agent actually get to the closing table (and the secret as to why real estate brokerage has a secure future). Having a real estate agent negotiate for a buyer or seller hopefully means that difficult messages are given and received by persons who are objective and detached and can thus communicate professionally with their clients and their counterparts on the other side of


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other agent to explain how his or her client came up with his or her offer. If the other agent tells you it is none of your business, or that they have no obligation to explain anything to you, nicely share with them that while they are right, it will be hard to find common ground without understanding where the other side is coming from. If, on the other hand, the other agent provides accu -


rate information to support a particular offer, thank the other agent for providing the information and share it with your client. It should be expected that the other agent will do his or her homework to understand the market to the same extent as you. If no explanation of the offer is forthcoming from the other agent, provide the other agent with those facts that causes your client not to view the offer favorably. Without ongoing dialogue regarding the respective positions of the parties and how they justify their positions, there will be little mean - ingful opportunity to find common ground.


HA VE REALISTIC EXPECTATIONS ABOUT CONFLICT


Knowing that emotions at work in buying and selling a home, REALTORS®


should be prepared for conflict and


the occasional emotional outburst by real estate agents on the other side of transactions. What does being pre - pared for conflict mean in this context? It largely means that agents should not be surprised when there are LEGAL EASE, CONTINUED ON PAGE 24 >>


GEORGIA REALTOR® I 19


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