It’s Not An Exact Science

by Kim Shindle

If you want to hone your negotiation skills, says J. Scott Cavender, take a small child to a checkout line at a grocery store.

“Some of the best negotiators I’ve seen are children,” he jokes. “How many times do they ask for something before they get what they want?”

Cavender, president of the Indiana County Board, teaches negotiating skills. “This isn’t a skill you’re born with and you need to recognize what tactics people use and how to respond,” he says. “Negotiating is a lot like being a chameleon,” he adds. “You need to change and morph yourself according to the different personalities you’re dealing with.”

Thirty-four-year industry veteran Robert T. Wood agrees. “The longer you’re in business the more you recognize the type of person you’re dealing with. One type is going to put his best offer on the table first and another type wants to go back and forth three times before he signs the deal.”

“Negotiations aren’t about getting the biggest piece of the pie for your client. It’s about making the pie bigger so everyone’s happy,” Cavender says. “The perfect negotiation is one where everyone is content with the deal. No one wants to be perceived as the loser, although sometimes as a REALTOR® you can be perceived as the loser. The other person thinks he’s won but you’ve actually achieved the goals you set.”

Price is often where negotiations begin, although it’s not the best place to start. “People dwell on the negative,” Cavender notes. “I like to ask the other agent, ‘What does your client like in the contract? Does the buyer agree on the settlement date? The inspection details? Let’s get every detail in the offer out of the way, then we can negotiate the price’.”

Vickie Brockelman, president of the Pocono Mountains Association, agrees that price isn’t the place to start negotiations. “When the seller gets an offer, he starts negotiating it without considering all of the terms of the contract,” she says. “Everyone loses sight of the entire package. The objective is to get the best price for the seller and the property for the buyer.

“The transaction often falls apart when it comes to the inspections because people accepted the agreement with the terms as written. You need to leave room for negotiating those inspections and other details,” Brockelman adds.

There are ways to make both parties happy. “For example, if the seller says his bottom line is $150,000, then you try to negotiate that the buyer will be responsible for any needed repairs found during the inspection,” Brockelman says.

Wood, president of the North Central Penn Board, says that negotiations come down to the Golden Rule: “You need to treat both sides fairly and end up with a transaction that doesn’t make anyone feel like they’ve been taken advantage of,” he explains.

Greater Mercer County Association President Constance Smith says it all boils down to communication. “Communication among the REALTORS®, buyers and sellers keeps every one abreast of what’s happening. We all represent different companies and clients but we have to work together as a team to accomplish the sale.”