Real Estate Negotiations: Six Communication Skills Worth Mastering
Investing in real estate requires a lot of networking and communication with buyers, sellers, and other figures in the industry. The communication process with the seller of a prospective income property is always an important step in real estate investing. If you want to close the agreement with them, you must master the following six communication skills.
#1 Reading Body Language
Understanding body language is absolutely critical when communicating with the seller of an income property. You must understand what someone’s body language is asking for. Are they confused? Are they resisting your recommendations? Do they distrust the information you are giving them? Did you lose them 10 minutes ago when talking about price? Have they already heard enough and are ready to sign? There’s a lot to go into when it comes to body language so I suggest taking some time to look up the most common body language cues and learn how you can recognize them.
#2 Engaging Everyone
Make sure you engage with all parties involved in the deal, not just one person. Time and time again I hear real estate investors say, “Well, the husband really liked me and wanted to sell to me, but the wife obviously didn’t warm up to me at all.” That’s probably because you focused all your attention on the husband! Learning to engage equally with two or more individuals in person is something you have to master. Always be very conscious of this when you’re meeting someone in person. Ask relevant questions and get people talking. Effective communication which builds and cements relationships is asking questions such as, “What was your last experience in selling a home?” This kind of question opens the door to engagement, and allows the seller to feel involved in the conversation and the process.
#3 Share your stories and experiences
When you share stories and experiences with the seller, you’re engaging them and building trust. You’re letting them know you’ve “been there, done that” and have the experience and knowledge to guide them through that same experience. Let them know the big visions you have for the property, and elaborate on your knowledge of real estate investing to let them know that you really know what you are doing.
#4 Listen, repeat, and question
Being a good listener is key to communication. Ask questions, and paraphrase what the other person has just said. This shows you’re interested in what they have to say and are paying attention. It also helps clarify any points that you may have misunderstood. If the seller is telling you how excited they are about their plan to move to a fishing cottage next and that they are looking to downsize, you might say: “So to recap, you are excited about moving to a fishing cottage after selling this property because of the opportunity to downsize. What are some of the specific area’s you are looking for a fishing cottage in?” Listening, repeating, and questioning the other person can help keep everyone on the same page.
#5 Don’t be distracted
Put away the cell phone, stop answering emails, and focus on the conversation that you’re having. In today’s technology-focused society, this is a common pitfall that new real estate investors should avoid when communicating with prospective income property sellers. It can be hard to step away from your devices, but effective communication in a face-to-face setting depends on it.
#6 Practice Silence
Sometimes you have to utilize the skill of silence, especially when speaking your truth. When we tell someone something they may not want to hear, they sometimes need space to absorb it. But what are we naturally inclined to do? Talk faster and throw a whole lot of information at the person, trying to justify your position.
Consider the following example:
Real estate investor: “I know you want to get $400,000 for your house, but that is $75,000 over where my research has shown us your house should be. In fact, no home in this neighbourhood has sold for over $375,000 ever! Your neighbour’s house sold for $369,000 and it has 500 more square feet than yours. Not to mention you have the retaining pond 50 feet from your back door. You are also not taking into account…”
Too much babble! The seller needs time for the first statement to sink in. This is how it should look:
Real estate investor (in a very calm and quiet voice. Very slowly) “I know you want to get $400,000 for your house, but the market is showing us $325,000.”
Then silence! It will be very difficult to sit there and not say anything. In fact, it will be downright painful. Especially for real estate investors with supporter personalities who want to soften the blow of what they just said. However, there is strength in silence. The seller will speak. Just sit there calmly and make eye contact. Not aggressively, but calmly. Remember to use silence, a quiet, calm, and slow voice, and space in the conversation when you are making a point.