Relationships, communication + negotiating

When a local real estate market gets really hot, as Denver is now, and when outside factors, such as Covid-19, combine, the art of negotiation becomes even more critical.

It’s something that often gets overlooked in local real estate conversations, but I’m highlighting it here because savvy negotiation stands as more critical now than perhaps since the Great Recession in 2009, and I don’t see many consumers, or real estate agents, talking about it.

Negotiation is also one of the most critical services real estate agents provide, and it is not well understood, and in this market, negotiation has become more sensitive and even more important.

Denver metro home prices have risen (to all-time average of $542,784 in August), inventory is low and homes are flying off the shelves. This means negotiation has never been more important.

[Get deeper insight on Denver’s blazing hot fall market]

The importance of relationships

The art of negotiation extends far beyond an individual transaction. In fact, the best negotiation requires years of local relationships with other agents. Trust me, agents know which colleagues they can trust, know their stuff and which to keep at arm’s length, and which are in over their head.

Aside from operating as a conscientious professional and doing the right thing, this is why I focus on maintaining a vibrant, respected relationship with the other top agents in my market. Even if I don’t know an agent (or they don’t know me) directly, often colleagues fill each other in — reputations spread wide in Denver real estate.

Whether buying or listing, an agent with a respected fellow-agent network, already gives their clients an upper hand.

Reach out to me at kharris@milehimodern.com for with questions

I can’t tell you how valuable it is to call a listing agent on a listing that my buyers really want and ask “What will it take to be in first position?” and get a clear answer. That information, taken with a grain of salt and all appropriate context, of course, helps fine-tune an offer and get negotiation off on the best foot possible for my clients.

Denver has many wonderful homes, many of which are in high demand, like this Cherry Creek North townhome. 

Clear communication

Careful communication is also key. For example, many offers I write on behalf of clients involves a personal phone call with the listing agent, explaining some of the details around the offer. We may be writing low — I explain why.

The converse is true — when I’m representing a seller — I love developing productive conversations with agents writing offers. Trust me, offers that come in from agents I know and trust, add something to the offer; I’ve seen many deals fall through from untrustworthy agents or who fail to follow through.

Negotiating

When in the thick of negotiation, the unexpected, or the disappointing, often comes up. The art of considering where the buyer or seller and agent on the other side of the transaction is coming from is critical.

Savvy negotiation requires a deep knowledge of the local market, its current trends, the demand for different types of homes in different types of conditions, the agent’s particular style and the communication established and more.

Receiving a low offer, for example, while disheartening at first does not kill a deal. Often, it’s the start of a negotiation that I’ve helped navigate toward a positive conclusion for sellers.

Choosing an agent

Consumers sometimes don’t realize that they are in the driver’s seat and should interview agents. Interview a few agents by phone, and discover whether you trust their perspective and resonate with the personality. Ask them questions about your specific circumstance, and listen closely to their reasoning and insight.

I’d be honored if you considered interviewing me the next time you’re thinking of buying or selling. Even if you’re not, I’m always available to provide my perspective on the Denver market and how Denver’s neighborhoods are evolving.