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How Much do Real Estate Agents Really Negotiate?

Real estate negotiator . That’s really what you are. Your primary skill is influencing others to do or accept what you want or what your client wants. How many issues do you negotiate in a week or month? Let’s simply list some of the typical real estate negotiation issues agents face:

Agent to Broker (Owner) Commission splits Office space charges Advertising / Co-marketing / lead generation cost sharing Types of training and cost Office charges (fax, copies, forms, etc.) “Shoe” deals Joining brokerage Retention/staying at brokerage Health benefits Assistants Association fees Business cards Lock boxes Signs/Installation Answering service Computers Profit sharing Floor time Sign calls

Agent to Seller Listing Appointment Appointment time and location Where you sit during the appointment Discussion topics and order Getting Seller to hire you now Agency Election (Seller selection of Broker duties) Listing Agreement Type (e.g. Exclusive Right to Sell/Rent, Exclusive Agency, Open Listing, Net listing) Duration of listing Exclusive Period and not putting in MLS for period of time Access, lock box, and showing times Compensation retainer commission/fee including performance bonuses sales after expiration period List price How and where offers presented (in person by buyer/buyer’s agent? Written/oral?) Home preparation/staging prior to home going on market Marketing/Advertising plan (sign riders, flyers, newspapers, magazines, internet, etc.) Open Houses Home warranty offered to Buyer? Acceptance or rejection of Buyer’s offer or counter offer Multiple counter offers

Agent to Buyer Get Buyer to hire Agent Agency Election (Buyer selection of Broker duties) Buyer-Broker agreement Period of agreement Amount of compensation (including commission / bonus and who pays) Purchase after termination timing Retainer fee Home value expectations (features vs. price) Initial offer to Seller (including multiple offer situations) Accepting or rejecting counter offer from Seller Buyer inspection notice to Seller Lender fees Loan documents on time

Agent to Agent (Broker to Broker) Co-broke / Commissions Earnest money on contract breaches Recruiting Referrals Fees Communication requirements Mentoring / training agreements Joint open houses Responsibilities Prospect ownership Joint office sharing Joint assistant sharing

Rainmaker to Team Member Recruiting / hire decision Office space Supplies Copying costs Automobile expenses Fees Commission splits Bonuses Profit Sharing Cap splits Lead generation Rainmaker responsibilities Team member responsibilities / opportunities Team member training/mentoring Non-compete terms Responsibilities / Performance requirements / Expectations Benefits (vacation, health care, insurance, etc.)

Agent to Third Party Resources (Title Company, Lender, Home Inspections, etc.) Treatment of clients Co-marketing agreements Special client rates / fees (e.g. re-inspection fees for home inspection, title fee discounts) Reciprocal referral agreements

Agent Representing Seller/Buyer to Agent Representing Buyer/Seller Earnest money (Buyer; Seller?) Personal Property included or not included in sale Purchase / Sale price Closing date Possession date Financing Conditional loan approval timing Appraisal payment timing Who pays Buyer’s discount points Discount points shall not exceed amount Who pays ALTA lender title policy Who pays loan origination fee Who pays appraisal fee Seller payment of Buyer’s other loan costs Payments of assessments at closing Buyer’s Inspection Notice timing and Seller’s response timing Buyer’s inspection issues HOA assessments and transfer fees Home Warranty Termite inspection/treatment payment Contingencies Deadline extensions Title company Rentals Special access Upgrades Utilities First Right of Refusal Mineral / water rights Utilities left on for inspections/repairs Multiple counter offers Lot survey fees Environmental inspection fees Well inspection fees Septic inspection fees

Real estate agents negotiate very frequently as you can see. There are over 100 separate issues identified above and there are other issues as well. Conservatively speaking you will have thousands of individual, issue-specific negotiations over your real estate career. Wouldn’t it be nice if you could approach each negotiation as a well trained, highly skilled negotiator? Don’t you think your clients deserve a well trained, highly skilled negotiator? Corporate America spends millions and millions of dollars each year on negotiation training. The savvy real estate agents, who realize they are business owners also, invest in training to grow their businesses. A few dollars invested in professional negotiation training will earn you the best return you’ve ever had!