Best Real Estate Negotiation Tactics for Successful Deals

Negotiating on your client's behalf is a critical skill and part of your profession. You may be having these discussions with other agents, homeowners, or landlords. Each situation will be unique, impacted by local and national markets. To stay ahead of real estate trends and do the best job for those you represent, you’ll need to hone your real estate negotiation tactics in 2025.

During these talks, becoming a real estate negotiation expert requires making decisive financial decisions. In this guide, you’ll learn about the latest approaches and how to use them to your client’s advantage.

The art of the deal in real estate

Negotiating real estate deals depends upon your knowledge of the market and your persuasiveness. At the heart of this are two sides that must meet with an outcome that benefits all parties. A win-win mindset sets the foundation of these discussions, ensuring that the transaction goes as smoothly as possible.

You will need to lean on your real estate negotiating skills and understand the many factors involved. From price to timing to concessions, everything is negotiable. Using logic, precedent, market data, and urgency can all be part of the toolkit you bring to the table.

Using the strategies presented below, you can continue to improve your skills and expertise, delivering the best results for your clients.

Real estate negotiation strategies for 2025

1. Know your market inside and out

The crux of many of your real estate negotiations will be your market knowledge. No matter the circumstances, market headwinds and tailwinds affect these discussions. You’ll need to be up-to-date on pricing, inventory levels, comparable sales or rentals (comps), and competition. With this data, you can make fair assessments about what price to offer or consider, depending on which side you sit.

Research is essential and must be current, as the market can change rapidly. One of the most critical market facts to focus on is comps. They inform the recent transactions in the area. They stand as a benchmark for what one should expect to receive or pay in real estate. Comps provide:

• Fair market value insights
• Potential leverage factors to introduce in negotiations
• Intelligence on appraisals
• Possible features to highlight that could impact price outside of comps

In considering recent sales in the current transaction, you have hard numbers on what the market will bear. No matter who you represent, this information plays a pivotal role in final agreements.

2. Master the art of active listening

Active listening can greatly support negotiating real estate and working with clients in any situation. It’s a communication technique requiring complete attention to who is speaking and following their verbal and non-verbal cues.

Pay attention to the other party’s needs and concerns. Once they’ve offered these, active listening teaches you to reflect and paraphrase. It shows you were engaged and ensures there’s no confusion about their positions. It’s a great opportunity to build trust and rapport with the other side.

Being a great active listener involves asking questions so they can elaborate and better define their desires. Examples include:

• Clarifying questions: What do you mean by that? Can you provide an example? How do you come to that figure?
• Probing questions: What are your priorities? What are your expectations? What do you think would be the best way to proceed?
• Open-ended questions: What do you need in this scenario? What are your expectations regarding the property?
• Addressing concerns questions: What are you most concerned about in the deal? What needs to happen for you to feel more comfortable? What are some alternatives?

3. Use data to back up your claims

The best real estate negotiation experts enter the discussion with data. You’ve got all the information from market research, which can be consequential in your approach. Listing prices, recent comps, demographic and economic trends, and demand for that area are all data points to have handy.

This information creates the story of what’s reasonable in the market, whether your client is buying, selling, or renting. They allow you to counter misconceptions or numbers that just don’t align with reality.

Some great resources for reliable real estate data include:

• National Association of REALTORS® (NAR) research and statistics analysis
• U.S. Census Bureau housing data (e.g., ownership rates, vacancies, etc.) andnew residential sales
• Third-party sites research data, such as Zillow Research, Redfin Data Center, and Realtor.com market data
• Freddie Mac House Price Index (FMHPI)
• U.S. Department of Housing and Urban Development (HUD) Data and Research
• MLS (Multiple Listing Service) local databases

4. Stay calm and control your emotions

In a residential property negotiation, your main priority is to help your client get the best deal possible. Remember that real estate deals are an emotional process for both the buyer and seller, and you won’t always know how someone else will act when going into real estate negotiations. They might have outbursts or be patronizing. It is essential that you control your emotions. Don’t let someone else’s behavior throw you off of your game.

Trust your instincts and stay positive and friendly. Discussions can become heated, and both sides will have different emotions present. Remain logical in your responses, citing your data and research rather than focusing on feelings. Don’t react because of fear or frustration; it may only worsen things.

While this is easier said than accomplished, these tips can help:

• Lead with facts.
• Practice empathy and validation.
• Focus on the negotiation and avoid anything personal.
• Maintain your professional demeanor at all times.
• Seek win-win outcomes.
• Be open to compromise.
• Keep using your active listening skills.

Lukasz Kukwa, a Real Estate Advisor and Investor for Coldwell Banker, often tells other real estate professionals to remember this:

"Residential real estate is an emotional process for both sides. They are experiencing different emotions. So do your best to accommodate those emotions. Always make sure that you deliver on what you offer or promise.”

5. Be prepared to walk away

One of the hardest real estate negotiatingtactics to learn is when to walk away. Simply saying no to some point or ask isn’t walking away completely. You can go back to the proposal at any time with fair counteroffers.

When should you walk away? The decision has much to do with your client’s bottom line. If there’s no wiggle room left, you must be your client’s wants above all else. If you and the opposing party aren’t in the same ballpark early on, then it’s best to walk away and work with someone else.

Oftentimes, it’s the best negotiating strategy. Further conversations would no longer be beneficial and would be a waste of time. Unfavorable terms, lowball numbers, unreasonable demands, and the other side’s unwillingness to budge indicate it’s time to leave the table. You can then move on to another buyer, seller, or landlord to achieve your client’s goals.

Sean O’Dowd from Close Concierge says it best: “Rather than beating a dead horse, you need to walk away. There are millions of other homes out there, and there will be one that's a better fit. “

6. Focus on solutions, not problems

Real estate agents are creative problem solvers, and negotiations are where this can help you shine. By focusing on solutions, not problems, you’re more likely to find common ground and keep the conversation moving.

Some strategies to apply include:

• Identify the underlying interests of the other party to see where there’s alignment.
• Brainstorm solutions together if you hit an impasse.
• Consider unconventional alternatives and acceptable compromises.
• Look beyond pricing to explore other areas to negotiate first, like closing costs, repairs, timelines, and responsibilities (if this is a rental negotiation).
• Ensure both sides feel they have control in the discussion.

7. Document everything

In any real estate negotiation, you’ll have lots of back-and-forth. However, the communications occur, keep detailed records of what you discussed and any outcomes. These include phone calls, emails, texts, in-person meetings, and counteroffers.

For counteroffers, these should always be in writing, documenting agreed-upon terms as a result of negotiations. Failure to do this could cause confusion or the other side walking back on what they presented.

Documentation also has a legal component. When offers are in writing, they represent a contract of offers, acceptance, consideration, and capacity. There may also be clauses for property descriptions, timelines, contingencies and dispute resolution.

Following any local or national laws is crucial, as well as any code of conduct as a licensed real estate agent. If unsure about legalities, seek counsel from attorneys.

What is negotiable when buying or selling a house?

As a real estate agent, you should be keenly aware of what is negotiable for each property and client you represent. The six items below are generally negotiable in residential real estate.

1. Price

Negotiating the price might seem obvious, but the price is what realtors do first. The seller hopes for the highest price, while the buyer wants to pay the least amount for the property. Therefore, it is typical that both parties offer higher or lower prices at first, depending on their positioning, then negotiate to a price somewhere in the middle.

2. Closing costs

If your client is buying, they must pay a prepaid closing cost for their mortgage. The mortgage company typically holds this closing cost in an escrow account. However, the buyer can request that a seller pay a flat dollar amount or small percentage contribution (1–3%) towards closing costs.

3. Closing date

When selling, your client wants to sell as fast as possible to stop paying for the property listing. Sellers are also eager to get a large financial return once sold. For buyers, once they own the home, it will affect their monthly cash flow. After closing, the buyer typically skips the next month’s mortgage payment. In this case, the buyer might want to close at the beginning of the month to skip the next month’s mortgage payment.

4. Home repairs

Homebuyers usually have the upper hand when it comes to negotiating repairs. Since the buyer is purchasing and likely living in the home, you should urge your client to hire an inspector and do a pre-inspection walkthrough. The inspector will discover issues your client will have to pay for in the future. Therefore, buyers should add these repairs when negotiating costs.

If your client is selling, you can always specify that the house is being sold “as is,” which notifies prospective buyers that repairs will not be included and should not be negotiated.

5. Appliances

When selling a property, the seller sometimes includes built-in or staple appliances such as the refrigerator, washer, dryer, microwave, and stove. If your client is selling, consider including some of these appliances while using the other ones for negotiation purposes.

As a buyer, research the quality of the appliances by looking up the serial numbers. The first four digits on the serial number are the month and year the appliance was built. Doing some research on the appliances via the serial number will help when negotiating their monetary value.

6. Furniture

Furniture that fits the house can be up for grabs if the seller is willing to part with it. This can be outdoor furniture, cabinets, chandeliers, or mounted televisions. If your client is selling and plans to use their furniture when staging a house, try to advertise the furniture in the listing. Just make sure that it’s clearly stated which furniture belongs to whom when finalizing the contract.

For more tips on negotiating, see our visual below:

Negotiate like a pro in 2025

Real estate negotiation can be tense, complex, and challenging. However, with these strategies, you can ensure your clients have the best representation. Remaining professional, calm, and intentional in actions makes conversations more fruitful. Ultimately, everyone should walk away with a deal that meets their needs and expectations.

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