In the REO market, negotiating with your clients or business partners is essential to sealing a deal.
You must have confidence in the knowledge you bring to the table and remain positive no matter what the situation is or who may be involved.
The ability to successfully cut a deal is important, which is why we decided to reach out to FORCE members with years of experience for advice on how to master this art form.
TIPS FROM THE PROS
Jim Cary of Reliance Realty Group is San Mateo, California, debunks the notion that asset managers are more difficult to negotiate with than others within the industry.
“Asset managers are all task oriented. You have to follow the platforms they use and follow their format. Negotiating with them is no different than negotiating with sellers. They are not emotionally attached to the deal. If what you say makes sense, then they will do it in order to close a deal,” Cary said.
With more than 25 years of experience in the industry, Cary said his simple approach to negotiating has brought him success throughout the years.
He adds, “I’m the managing broker for Reliance Realty Group. I’ve been taking this approach full-time since day one.”
Tracey Bitonti of Irongate Realtors in Kettering, Ohio, claims effectively translating information is an essential element in the persuasion process.
“I always listen intently and try to get the best terms for all parties involved. I feel like it’s my job to facilitate the transaction and bring all parties to a mutual agreement. Correspondence is key whether you’re negotiating with another real estate agent, the buyer, or the seller,” Bitonti said.
Bitonti has the accolades to back her approach. “I’ve been in the business for 23 years, and the top agent in Ohio for the past four years. I’ve been at Irongate Realtors for 22 years, and I love it,” she proudly adds.
Tara Nagelhout of Emerald Valley Real Estate in Eugene, Oregon, believes agents in the industry should maintain a common vision.
“I always remember we all have the same end goal in the industry. We can get there by working together and not considering the other person, the other part of the transaction, as an opposer. We have to all be on the same side to get a deal closed. I think that when we put into our minds that there’s a buyer side and a seller side, it seems oppositional. We have to remove that concept from our minds. Everything in life is negotiable. I’ve figured that out,” Nagelhout explained.
OVERCOMING NEGOTIATION OBSTACLES
When it comes to negotiating within the industry, you can expect to face obstacles. Whether they are simple misunderstandings or failures to meet in the middle, FORCE members know how to power through no matter what the circumstance.
Nagelhout proclaimed, “I’ve always believed that everything is attainable if everyone involved wants it. Sometimes deals do go south for people, but that simply means one party wasn’t wanting it as much as the other party. It’s probably for the best in those cases.”
Cary, on the other hand, reflects on problems when working with a certain kind of buyer.
“Some problems I’ve had in the past are with people claiming to be cash buyers. They make everything sound good and it looks like a quality deal until the end. What ends up happening is they’ll change their direction and tune once they get it ratified. Deals have gone wrong for me in this essence because it’s usually not their money. It’s unfortunate, but it comes with the nature of the game. I’ve learned that you must pre-screen them to make sure the funds are in their name,” he stated.
For Bitonti, there is no such thing as a deal gone wrong.
“I’ve never had a bad experience when negotiating with parties. None of my deals go wrong. We are usually smooth sailing here,” she confidently reflected.