Estate of Mind — The Art of Selling Luxury Real Estate - Marketing Blueprint Series: How to Effectively Negotiate in Luxury Real Estate (Part 2) with Kofi Nartey

Marketing Blueprint Series: How to Effectively Negotiate in Luxury Real Estate (Part 2) with Kofi Nartey

10/19/22 • 31 min

Estate of Mind — The Art of Selling Luxury Real Estate

Breaking Down Negotiation in Luxury Real Estate:

When we think of negotiation, it’s often synonymous with some sort of conflict that is being worked through. For example, your seller wants a certain price for their property, and the buyer doesn’t want to pay that price. This scenario can certainly take on the appearance of a conflict, but it should instead be looked at as an opportunity for two parties to simply reach an agreement. A negative connotation doesn’t need to be present here, and the approach one takes can actually be quite positive.

Negotiation is simply coming to an agreement where both parties are compromising to some degree. While real estate negotiation will sometimes leave one party less satisfied than the other, it’s still important to remember that it is the job of a luxury real estate professional to be able to fully explain why negotiating is often the best approach. If you can educate and inform your client before the negotiation process starts, you’re setting them and yourself up for a more agreeable outcome.

Successful Negotiation Is All About the Prep Work:

Like any skill, negotiation needs to be practiced — a lot. If you want to be truly great at something, you need to practice at it not until you get it right, but rather until you can’t get it wrong. There’s a big difference between being capable of success and consistently finding it. When it comes to effectively preparing for negotiation, you need to be aware of the personality types that are going to be part of the process. You have to take these personality types into consideration so that you can better prepare and know how to subtly maneuver the conversation in order to achieve an agreeable outcome.

You also need to be prepared for any possible objection that may be presented at any point in the conversation by being able to very clearly explain both the process and the rationale behind it. Remember, when it comes to successful luxury real estate negotiations, you’ll achieve better results based on the amount of preparation you put in before the conversation even begins.

Topics and Questions You’ll Uncover During this Episode:

How do you prepare for a luxury real estate negotiation?
Why being able to explain one’s professional fees is so important
How using scripts as a baseline for discussion can save you time
Why is doing your research before negotiation so critical?

Resources Mentioned within Episode:

Breaking Down Negotiation in Luxury Real Estate:

Successful Negotiation Is All About the Prep Work:

Topics and Questions You’ll Uncover During this Episode:

How do you prepare for a luxury real estate negotiation?
Why being able to explain one’s professional fees is so important
How using scripts as a baseline for discussion can save you time
Why is doing your research before negotiation so critical?

Resources Mentioned within Episode:

Previous Episode

Marketing Blueprint Series: How to Effectively Negotiate in Luxury Real Estate (Part 1) with Steve Yastrow

Being a Real Estate Professional Is All about Building Relationships:

As a luxury real estate professional, constant communication and negotiation are two parts of your day-to-day interactions that are incredibly important. To become both a more effective communicator and negotiator, it’s important that you understand your client’s path to “yes” and the most effective way of leading them there.

First, you need to figure out what’s happening. Specifically, you need to determine what your client is in need of, and then you’ll be able to more accurately determine the best path to help them achieve it. To do so, you need to create a conversation that flows from one detail to the next, always building momentum along the way by creating a series of yeses that will help your client realize that you’re aligned with exactly what they’re looking for.

Remember, focusing on the customer by specifically being attuned to their pace of conversation is the key to more effectively communicating with them — and effective communication will quickly lead you down the negotiation path in becoming the ideal luxury real estate professional for them to partner with.

Topics and Questions You’ll Uncover During this Episode:

The importance of negotiation as a luxury real estate professional
How does improvisation factor into building better relationships?
The concept of thinking input before output to determine client needs
Building persuasive conversations as an effective negotiator

Resources Mentioned within Episode:

Next Episode

Marketing Blueprint Series: How to Market Luxury Real Estate Listings (Part 1) with Tami Simms

The “Tami” Framework for Marketing a Luxury Property:

Once you’ve earned an entry-to-midpoint luxury real estate listing in your market, what’s your next step? Before you start any marketing campaign, you should keep in mind three basic principles that will help guide you down the most effective path:

1.) Preparation: Remember, no marketing strategy can overcome commonly overlooked pitfalls like incorrect pricing or low-quality presentation materials

2.) Building the Story: Whether you’re using photography, video, or drone footage to highlight the luxury property, be sure to do so with clear messaging in order to have the greatest impact on potential buyers

3.) Telling the Story: Once you have your materials built, you need to make sure you’re presenting your story in the most effective way possible via different marketing channels

With the above principles in mind, marketing a luxury property doesn’t have to be unnecessarily difficult. Remember, it’s important to give yourself enough time to get the marketing approach right. At the same time though, you can’t spend so much time in the prep work that the seller starts to get anxious before going to market. In order to streamline your process, focus on the things that help make the property unique, particularly the lifestyle that the property will provide. As long as lifestyle is the foundation of your story, and you use high-quality materials to present your story, you’re headed down the most direct path towards finding the right buyer for your luxury listing.

Topics and Questions You’ll Uncover During this Episode:

How incorrect pricing can set you back significantly when trying to sell a property
Why properly staging a luxury home is so critical
How to approach certain luxury property challenges that cannot be overcome
What is the difference between a “Want Market” and a “Need Market”?
Why are luxury broker open houses so important?

Resources Mentioned within Episode: