Full transcript of “Effective Negotiation Techniques with Julie Nelson”. Click a timestamp to open the video at that moment. Need another video? Use the YouTube transcript generator.
0:00 foreign [Music] what's next so my name is Julie Nelson I am in Austin Texas I've been in this business for a very long time and as Candice mentioned um I've been teaching this negotiation class in exp University for quite a while designed it a couple of years ago and we've been rolling with it so really excited about this new uh platform to deliver to you so today we've got uh the first portion of this the first half of this is uh overall seller negotiation buyer negotiations some repair negotiation and here's the glue that matters the most the psychology that makes it all easier and
0:46 we're going to jam pack that into 30 minutes and then right after that I have two guests with me Dr Porsha Ryan and and icon agent Eric Miller out of Fort Lauderdale they are amazing and we are going to we've got q a on negotiation just tips and best practices so I'm really it excited to deliver for for you all too today so the first thing I want to talk about is I want to remind everyone how much negotiation experience you already have so let's say if if you're new were in the business first year second year third year you might think well I don't have a lot of negotiation experience as a human being
1:34 you have we you have so much negotiation experience who has kids who has toddlers who has teenagers who has grown-up children who has a significant other or a spouse a husband wife right who's bought a car in the last five years guys we all have negotiation experience and like kids are Masters so parents out there if you're listening in I gotta tell you you have a heck of a lot of negotiation experience but just don't your kids may be better at it than you are but we're going to work on that so here's let's hit some of the psychology right up front because folks
2:20 by anchoring this these Concepts into how you approach negotiation uh in your real estate business or even just how you build your relationships with your buyers and sellers this can make all the difference in the world this makes our negotiation easier we are going to get into specific some specific negotiation techniques and what to say and some tools that you can use to make that smoother and efficient but the more you have the psychology base in place in how you are being with your clients the easier your negotiation is going to be so want to start with a little discussion about the disc profile now a lot of you a lot of you are familiar with the disc and some of you
3:07 are like I have no idea what you're talking about Julie or you'll hear Candace mentioned just in this section just before she said something about she's an ISC but now she's probably an is and you're like what is that foreign language some of you know and some of you don't so the disc profile it's a behavior type tool that's used not just in the real estate industry but it's used professionally out there all over the place you can actually find a free assessment I think on the Tony Robbins website I think if you go to tonyrobbins.com forward slash d-i-s-c you can you can take the disk assessment so if you've never done that I do recommend that that you do because it come comes up often so there's four type
3:53 type of behavior types in the disk assessment so d-i-s-c dominant interactive the steady impatient and then the C is the compliant perfectionist and it's really important one to understand kind of how you're wired but then in alignment how is your buyer or seller what is their behavior type and of course if you let's say you have a a husband wife that's a buyer or seller they're not the same people so you can totally have two Behavior types with that but tuning into their behavior Behavior types and their communication preferences is going to help you be a bit better negotiator and Communicator with them
4:41 so a dominant extrovert how are they wired what is effective in negotiation with a strong driver personality well keep in and take some notes here and by the way there's a um for those of you that are with exp on workplace I have a group that's called negotiation tips and best practices it's easy to find if you type in negotiation it'll pop up on your screen um I have all of this outlined in that group I have downloads things that you can export Etc including this that I'm talking about right now with the disc so the strong dominant personalities they love to drive so think about a buyer seller that you've worked with in the past who's just really kind of strong okay headstrong just really super
5:27 confident um they love to drive you want to help them win um there there tend to be very bottom line focused and a little script that works with them that's very effective with them and I use this all the time is hey the numbers are the numbers and the data is the data they understand that because you're you're talking their language now you're not this may not be your behavioral type but maybe or or it is but your ability to meet your client on their level is going to help you be a better negotiator a better Communicator with them okay now the the interactive
6:12 influencers these are the real they tend to be real social people effective with negotiation with them is it's important to let them talk and interact so if you're that person if you're that real talkative interactive uh agent you may need to tone that down a little bit because you need to let your buyer and seller talk and interact um keep things good-natured and light-hearted with them if that's not your style lean in with that a little bit with your real social clients um good-natured and light-hearted um they understand win-win asking feeling questions is effective with them and here's a script that works well or
6:57 is speaking their language it's when you say let's look at this together that's their language now by the way and this is this is just a total bonus with this section if you can Master this skill of adapting to the other person's Behavior type it makes you a better human being it makes you a better parent it makes you a better friend and I'd love to teach an entire session just on that alone but let's keep going okay so the S the steady impatient relator when you're in a negotiation situation with them okay they hate conflict so keep that in mind that behavior type
7:43 hates conflict it's not comfortable for them so no Hard Sell with those folks and you need to listen to them they can be a little slower with decisions so giving them some space is going to be effective with them they tend to be unemotional and asking how questions is good with them now a script that works with them is let's see what makes sense to you you're speaking their language all right one more the last one the C the compliant perfectionist these are your accountants your engineers these are folks that love a good spreadsheet okay your real detailed people okay if that's the other party if that's your client so keep this in mind what is effective with
8:30 them they tend to be cautious they're definitely detailed and they're definitely analytical so the more you can deliver that the more effective you're going to be with them so give them facts and data and then when you think you've given them a facts and data give them more facts and data you're speaking their language stay organized avoid small talk with this Behavior type it's not effective with them if you're the chatty realtor guess what you need to tone it down a little bit when your client is the compliant perfectionist and they have a tendency to get stuck on price only so you may have to really coach them around that and just like those strong D Behavior types the the same script works with them the data is
9:18 the data the numbers are the numbers the data is the data the numbers are the numbers so you don't have to explain explain explain with the detailed person or the dominant you can just say the data is the data is the number of the number you're talking their language all right let's keep going big picture with negotiation now by the way all of this material I have a slide deck for all of this in that workplace negotiation group so big picture with negotiation I'm going to hit some bullets here real quick so be so be thinking about this so one and this is so critical the more proactive you are the more you're working early on communicating with your client before
10:03 you're even in a negotiation situation the easier your negotiation is going to be I'm going to dig into that a little more so stay objective when you're in a negotiation situation stay objective what's the objective well guys here's the simplest objective in real estate right the buyer wants to buy the property the seller wants to sell the property all we're trying to do is find the middle ground that everyone can agree with the end goal is the same the objective is the same also keep in mind that the decision vision is a or the process is a decision it's not a contest of Wills so if folks are kind of starting to lean this way help them see that all we're trying to do is make a
10:49 decision that works for everybody um Cooperative versus competitive a failed negotiation I want to talk about this um as you're as you're coaching your client through a negotiation oftentimes it can be very helpful to help them understand that that if we are not able to agree with the other party on on these terms on the price on the terms so I would call that a failed negotiation that's a little strong but you you get the idea but it means starting over with that client and there certainly have been times in my career when I walked through that with a client maybe a
11:35 client's digging their heels in on one particular part of the contract or they're digging their heels in over a couple thousand dollars on a contract it can really help to provide that perspective to say look we're so close here let's have a little perspective because if this doesn't work and I know you really love this house but if this doesn't work we're starting all over again we may be in a multiple offer situation again we're taking it's taking more time it's going to take more money so help them see um help them that that can help get your buyer or seller sometimes off you know off the fence I'm keeping motions out of it let me say that again my friends
12:21 as the realtor keep your emotions out of it our job is to be Mr and Mrs steady in that communication always know your timeline always know your timeline never ever ever miss your deadlines or at least be proactive enough in the process to extend them if necessary but that's not always an option because if you're running right up against the deadline that can reduce your Effectiveness with your negotiation and in Most states verbal does not count everything in writing everything in writing everything in writing stick with the facts understanding your your market and controlling that dialogue guys I can't emphasize that enough right now in times
13:08 of a market shift this is a hundred times more important is understanding your market and being able to manage and control that dialogue to be effective with clients right now we may have a whole bunch of sellers out there that are still thinking that prices were or at least they're fantasizing that prices were what they were eight months ago and they're not and so we have to control that that dialogue all right let's keep going so is it always price in your negotiation with your buyers and sellers no of course you know it's not it's not always price so it's price and terms and then repairs it's price and terms and then repairs don't always assume
13:56 that you know what is most important to your client or is most important to the person on the other side of the negotiation we don't know we might assume that it's price price price but guess what it's not always price or a number that the buyer or seller had on their had in their head a couple days ago not necessarily the same number that they have in their head today so don't assume that it's all price we have to add you you got to ask if we have to continually have those conversations all right in your negotiations there's four steps there's four stages in the negotiation and there's one key point I want you to remember with this okay so stage one is
14:42 the early stage in re in relationship building stage two is your research and planning stage three is where you're actually like physically submitting your offer your counter offer okay that's the writing it up and delivering portion and then stage four is the actual responding options except reject counter withdraw so early stage research and plan submit and then the actual back and forth response negotiation here's what I want you to remember with those four steps is that when we think of negotiation oftentimes we're thinking all about that fourth step like well we're making a request and we're going back and forth till we can
15:30 figure out what our agreement is point I want you to recognize is steps one two and three are the most important and possibly that relationship building and that research and planning steps one and two are the the the steps that are going to actually make the final negotiation a heck of a lot easier is this starting to make sense so the more you do early on the easier that negotiation is as we go all right let's keep going um buyer perspective and strategy now some of this overlaps with us with with seller uh perspective and strategy um so be listening for those things that may apply to the seller as well okay but
16:15 let's say you are representing the buyer so put yourself in that mindset so with your buyer perspective so be proactive now a lot of this has to do with writing the best offer writing a good offer right when we write unrealistic offers the negoti the negotiations harder so how how well informed are we for making that offer so so before your offer we need to be engaging with the listing agent and what's like what's the most what's most important to the seller um is there a specific time frame that the seller needs uh are they looking for a lease back obtain as much information as you can some of that may be online
17:00 for you read every single thing online and a actual phone call and conversation with the agent if that's possible and hopefully that's possible can be particularly valuable because it's going to help you write the best offer possible so always remind your buyer of the objective so what is what is their objective well they want to get the house at the right price that's the objective right so I always say to my buyers I'm like guys hey my goal is for you guys to get the house ideally for the for the least amount of money possible but I want you to get the house right because this is there's so much education with our buyers to help them be realistic about what our prices go doing in that neighborhood so it's all
17:47 about writing the best offer to set ourselves up for the easier negotiation I'm a big fan of easy so prepare your and then prepare your buyer for how the seller may respond they may say yes they may say no or they may meet us somewhere in the middle we can negotiate repair we can redo negotiate price we can negotiate closing costs concessions or some combination thereof so there's a lot of Education in there so your buyers understand their options now some seller strategy again be proactive are you are you are we seeing a theme Here the more work we do ahead of time the more preparation we've done with our buyer or seller
18:32 ahead of time the easier our negotiations are later easy it's my favorite four-letter word is a love and easy negotiation I've had my share of some challenging negotiations over the years but we can make it easier on us we can make it easier on our clients by being proactive so with the seller for example so keep this in mind and this is you working with your seller this may be a month before you you're even on the market the more your seller disclosures discloses about the condition of the property before any offer negotiations begin the better because the buyer is well informed on the house and you're setting yourself in your seller up for
19:17 an easier negotiation I'm a fan with my listings and I don't do this a hundred percent of the time time but I do this a fair amount I'm a fan of my sellers doing a pre-inspection and us including that with a seller's disclosure because I know it makes our negotiation easier we we tend to not have repair negotiations in those situations so you see the theme Here is that it's the early work that's making the negotiation easier now here's a little more seller strategy here's a script I use with my sellers during the listing appointment or in the Preparatory stage with the seller that's designed for our negotiations to be easier and this is an actual script that I use I'll say hey Mr and Mrs
20:04 seller the buyers are going to expect the major mechanics of the house to be in good working condition if they're not they should either be repaired or we will disclose that and price the home accordingly I think that's just smart um so and also prepare your sellers and your buyers prepare them for what they normally see on an inspection report so they don't flip out when they see a 35 page report on their house their house that they really cared for over the years right so help manage that expectation because that can make the negotiation easier as well and also remember none of no verbal offers everything in writing everything in writing okay
20:50 um I also like to say that the more sellers fix things before they go on the market the easier you know negotiation is going to be all right seller negotiation 101 201 and 301 has everything to do about how you price that house in the first place your your most effective negotiation has a heck of a lot to do with having a sound pricing strategy and really pricing the house realistically in the first place right if you're way overpriced you're you may be setting yourself up for a difficult negotiation so our job with our negotiation is way before the negotiation in getting our sellers realistic about
21:37 um the the pricing in the neighborhood the pricing in the market the market trends and that's super valuable super important right now in this um in this market shift so pricing pre so negotiation with your sellers pricing pricing pricing pricing so go take a couple pricing classes get really really sharp on that all right now let's hit repair negotiations for a few minutes so repair negotiations now this may vary a bit from state to state I'm in Texas so I know how it works in Texas um it this may vary a little bit in your area but with repair negotiation so is that happening like in Texas that tends to happen in in the first you know kind
22:25 of let's say three to seven days once we're under contract and then we're and then we're done with it typically okay so preparing the buyer and seller what you normally see on an inspection report again so no one freaks out when they see uh these inspection reports are long right and also manage your time so what is the timeline what are the deadlines and and if you're asking for like X Y and Z from the seller so if you're the buyer representing the buyer and you're asking from the seller giving them enough time not not you know not throwing this request you know on their plate on the second half of the last day that can be terribly ineffective because you've not given them any time to really process that information or research that information
23:12 so really managing your time is super super key um prepare your buyers prepare your sellers prepare everyone to be flexible prepare them to be reasonable and stick to the facts now um help help your client have a have a solid repair negotiation strategy for example nickel and dime no it's ineffective this is part of how you're coaching your clients you're going to say look we need to avoid nickel and dime it's not effective we want to hit the most expensive items we want to hit safety items we want to hit any water issues in any issue that may be important to to your lender those are
23:57 that's the top top of the list for repair negotiation and if your buyer starts kind of going down the Nickel Dime Road you may be reducing your Effectiveness on the things that really matter the expensive items okay so keep that in mind also help your buyers understand the difference between a repair and an improvement if a house does not have gutters and the buyer wants to ask for gutters to be involved it um installed guess what that's an improvement we're not negotiating improvements we're negotiating repairs now a note on FHA and VA buyers so whether you're on the seller side and the buyer has the FHA or VA financing or you're working with the buyer with FHA or VA financing keep this
24:43 in mind because those because financing has some specific property condition requirements so for example VA and FHA Loans will typically require no peeling paint no wood rot no safety issues no cracked Windows no plumbing leaks and no termite or pest issues so if those exist with the house one if it's your buyer that's actually an easy negotiation because you the the buyer is probably not going to be able to close that loan without those being repaired if it's your seller and those those conditions exist fix them before you go on the market if you think it's likely to attract a VA or FHA buyer that's just
25:30 you being smart with your seller that is setting yourself up for a much easier you're being proactive you're setting yourself up for much easier negotiation so that's what FHA in VA um now a friend ran this by me the other day or recently and said in negotiation keep in mind some things that we can learn from lawyers from attorneys and I think this provides some nice perspective so what do attorneys do they stick to the truth and nothing but the truth they keep accurate records They Talk clients through legal implications and lawyers bring these traits to the table they're detail-oriented they're organized they're highly meticulous in
26:15 their planning and preparation they have extreme high levels of self-belief and they show confidence in every conversation and they always listen with the intent to understand rather than focusing on their own response and that can help us be better negotiators now just a couple things before we bring my panelists in to talk through negotiation further I want to review I hit some scripts in the last half an hour I hit some scripts and I want to say them again now these are going to be posted on that workplace group so know that you can find them but here are the scripts that we hit because this can help you be a better negotiator remember the data is the data and the numbers and the numbers that's good with your detailed clients and your in your strong dominant types
27:03 or let's look at this together that's effective with your eye and your as types let's see what makes sense to you okay here's another one and this has to do with anyone who wants to move you know anything verbal forward um it's you cannot speak on behalf of your client without speaking with your clients to be really careful with that in your negotiation and the simple script is I will speak with my clients and get back to you that's just the standard issue response I use that all the time also with the buyer hey I want you to get this house for the lowest price possible but I also want you to get this house they understand that we're speaking language um buyers will expect the major mechanics of the house to be in working condition if they are not we should
27:49 either they should either be repaired or we'll disclose that up front this sets everybody up for a more realistic uh negotiation okay so those are some of the scripts all right so with your negotiation remember those early phases and the the relationship building and starting early and having the solid pricing strategy those are all that's going to help you have the easier negotiation it's those early phases understanding the disk the disc and remember you can find that there's a free version you can take on tonyrobbins.com forward slash disc d-i-s-c um train and prepare your clients early on okay guys as Realtors we are we're
28:36 we're we're coaches and teachers with our clients and so the more we are are working on this early on with our clients the E the more effective your negotiations going to be help your clients see that they have options we don't want clients to feel like they're backed into a corner we're building bridges with our clients and and helping them see that they have options will help it just kind of brings the energy down a little bit we don't want we don't want our clients making decisions in a panic mode we want them um in we want them thinking clearly okay so manage your time manage the expectations and help your clients keep their eye on the goal where are we going why are we doing that what what what is
29:23 in it for this client okay help them keep their eye on the goal versus getting you know caught caught in the weeds um the last thing I want to mention I mentioned this earlier but there's the negotiation group on workplace there's a lot of material there there's a longer version of of this class archived there are handouts that you can use with your buyers and sellers that you can utilize in your business and even more so it's a community of Agents who are engaging in negotiation topics so if you have a question or a situation you could plug it into that workplace group and get get feedback I'm usually
30:08 monitoring it but a whole bunch of other agents are as well so you can engage your realtor Community sometimes to get a little encouragement or tips to help move a negotiation further okay so that's our um that's our 30 minute negotiation overview tips and best practices we talked about sellers we talked about buyers we talked about repair negotiation and we talked about the psychology that's really the glue that holds it all together so now we're gonna [Music]
