When we think of negotiations in a property deal, the focus often goes straight to price. However, experienced negotiators know that the art of a successful deal goes far beyond the dollar amount.
It’s about understanding the psychology behind each party’s needs and motivations, recognising the value they are looking for beyond just the price tag and creating a path that keeps everyone happy. Real estate, after all, is about people—buyers, sellers, and agents—all of whom bring emotions, expectations and their own personal values to the table.
One of the first steps in any negotiation is understanding the real motivation of each party involved. Often, sellers aren’t just looking to sell at the highest price—they might have concerns about timing, contingencies or the type of buyer they’re selling to. Buyers, similarly, may want a quick settlement, specific conditions or a sense that they’re getting a win.
In one negotiation, we sensed that the client needed to feel they were gaining something specific from the transaction beyond the agreed price. By adjusting a few minor terms that didn’t impact the financial side of the equation, we created a win for the client and moved the negotiation forward smoothly. Small shifts in approach, based on understanding their needs, can help both parties feel positive about the deal.
Sometimes, in negotiations, both sides are so focused on the big picture—price, deposit, settlement—that smaller concessions get overlooked. These “small wins” can be important, especially if one party feels they’re continually giving up ground. Adjusting minor terms, like deposit amounts, inclusions or the timing of certain stages, can make a client feel like they’re receiving something significant without it costing you—or them—anything major.
For instance, a simple adjustment to deposit timing or settlement terms can give one side a sense of added value. While it may seem minor in the grand scheme, it can help the negotiation move forward with both sides feeling like they’ve gained something without either sacrificing anything major.
One important part of negotiating successfully is managing expectations from the outset. When clients have unrealistic expectations, they can quickly become frustrated if things don’t unfold exactly as they hoped. This frustration can lead to increased emotions and resistance, which, if not carefully managed, can derail an entire negotiation.
A recent negotiation of mine reminded me why I always set the tone and expectations with my clients ahead of time. By preparing the client in advance for potential scenarios—such as what concessions might be reasonable to request and what aspects they may need to compromise on—we were able to navigate the process more smoothly. They understood that negotiations are not usually straightforward and that flexibility is required. When the inevitable curveballs came along, they remained calm and were able to work with me, knowing they’d been prepared for this from the start.
Negotiations are also often about the relationships we build. Building a strong rapport with agents and clients goes a long way towards getting great outcomes. In a recent deal, another buyer’s agent approached a deal aggressively, treating the selling agent as simply a hurdle to overcome rather than a partner in the process. They demanded terms and pushed hard on price, leaving no room for collaboration with the sales agent.
In contrast, we approached the agent with respect and professionalism, taking the time to build rapport and treat them as a professional. By respecting the agent’s role and engaging in open, respectful communication, we ultimately found that the agent was more willing to work with us and to give us better terms. We were ultimately able to secure the property for our client at a great price and the agent came away feeling positive about the transaction and working with us. It was a win-win and came about because we approached the process in the right way.
In a property transaction, flexibility is often viewed as a strength rather than a compromise. Being willing to adapt on minor issues can sometimes unlock major benefits. For example, shifting timelines or adjusting non-essential terms shows the other side that you’re committed to finding a win-win, not just pushing your agenda.
In one case, we were able to adjust the settlement date slightly to accommodate the seller’s needs. This flexibility built goodwill and signalled our willingness to work together rather than against them. The seller responded by being more receptive to our other requests, ultimately allowing us to secure terms that were highly beneficial to our client.
Negotiation is as much about psychology as it is about numbers.
Thinking beyond price and focusing on what makes each party feel valued and understood transforms a simple transaction into a successful partnership. That’s the true art of negotiation.