108: Center for REALTOR® Development: Mastering Win-Win Negotiation Strategies with Evan Fuchs: Part 1

Today's topic is so essential: negotiation! It has always been important. As our markets have been shifting and industry changes are happening, we need to go back to remembering the basic and core tenets of good negotiation while also understanding the nuanced parts of that shift within the market and the specific needs of our clients.

My guest today, Evan Fuchs, is a 28-year award-winning REALTOR® and industry leader from Bullhead City, Arizona. Negotiation is one of those topics we need to learn about all the time. Unless you're writing a book on negotiation, I suggest more education is helpful. I love learning from skilled negotiators wherever I come across their books or meet them, like Evan or even some of my clients, who teach me new ideas and angles to consider in my negotiation. Evan and I both believe in the long-term value of win-win negotiations in real estate.

Evan shares insights on building relationships and finding mutually beneficial outcomes. We discuss the importance of offering options, how crucial it is to get professional training, and the value of tangible and intangible negotiation elements. Evan will tell you what those are. Let's learn together!

We are releasing this interview in two episodes. This is Part 1.

[2:04] I am so glad to have Evan Fuchs with us today on the podcast! Welcome, Evan!

[2:12] Evan is one of the very successful nice guys! If you ever get to meet Evan, talk to him. He's delightful, smart, and friendly. We're going to talk about negotiation, and he is the perfect person to have with us to talk about relationship negotiation because he's kind and respectful.

[2:33] We will discuss a win-win negotiation atmosphere and why that's good. Evan, you're a 28-year veteran, broker-owner, board member extraordinaire, association president, and winner! (Evan says that introduction will put a pep in his step!)

[3:05] Monica describes her impostor-fighter shelf of awards and statues that remind her that she's awesome at her job and connected. She recommends you have a shelf like that, and whenever you need a boost, look at your shelf and say, 'Yeah, I got this'!

[3:35] Evan heard Monica talk about the importance of celebrating in one of her podcast episodes. Evan is totally about celebrating, even little victories.

[3:52] The win-win negotiation model is a mindset that negotiators adopt. Instead of trying to compete against somebody, they take responsibility for building a good relationship with the other negotiator to work together to find good outcomes for everybody.

[4:47] Sometimes, one party does get a better deal, but can you do something to let the other party feel like they also have a good outcome?

[5:14] Dan says that options give us power. If I have the myopic view that this is the outcome that's good for me, and I can't get you to agree with that, then the deal's dead, but if we can work together and try to find other ways, then we have a chance of keeping the deal alive and getting to the closing table.

[5:42] It's about how to help you get what you want so I can get what I want. Let's create many ways to get there and find the best one.

[5:51] Everybody wants a deal. You may be working with a client looking at a transaction like a war. You have to help them find options and negotiate so both parties are happy with the outcome. Monica reminds agents that we must train ourselves and our clients to negotiate well.

[7:06] Evan says that one out of four buyers want their buyer's agent, above everything else, to negotiate for them. They would rather you be a good negotiator than be good at finding them a house. Monica invites you to improve your negotiating skills. Promote them as part of your value.

[8:43] In this episode, we will keep the buyer's agent negotiating with the seller's agent for their clients as our context. In Episode 2, we will discuss the agents negotiating with their clients for various things.

[10:09] Evan explains the tangibles and intangibles of negotiation. The top-line purchase price is tangible. There can also be a concession further down in the contract. That is also tangible and measurable. The things you put in the blanks on a contract refer to something measurable and tangible.

[11:21] Price is just one element of the negotiation. Think of the price, terms, and everything else involved in the negotiation as representing a value package. Look at the bottom-line number and what you exchange to get to that number. That's when you deal with both tangibles and intangibles.

[12:23] Value negotiating is where I offer something to you that's of higher value to you than it is to me. This could be like moving up the closing date if you are in a hurry. We trade it for something of low value to you but high value to me. That creates a win.

[14:00] One of Monica's favorite negotiations was between a buyer who offered under the listing price and a seller who wanted the list price. She wrote a contract with an expiration time that if the seller could get the list price from another buyer within a week, they could do that; otherwise, they would accept this offer.

[15:41] Evan considers that a smart, creative negotiation. Monica's client did get the house after a week, while the seller had time to find another offer, which did not come.

[16:08] Evan notes that considering the options takes time. To develop that kind of strategy, be prepared, know what you're doing, and spend time with the market, the property, and the client. Spend time, especially with your client, so you don't miss the options that may be meaningful to them.

[17:14] Monica thinks some agents don't realize that the agent-to-agent relationship is valuable. The buyer's agent has some influence when the seller's agent is looking at multiple offers. The relationship history matters both in large markets and small ones.

[19:13] Monica and Evan discuss how personal property becomes a negotiating point. Monica says agents in Tennessee must let their buyers and sellers negotiate personal property. Evan believes the furniture owner places a higher value on it than the buyer.

[20:42] Monica cautions her listeners that if you negotiate anything beyond appliances and attached things, make sure you talk to your broker and know how that works in your state and local market.

[21:11] Evan says intangibles are things that can't be measured, that you can't quantify. Is this a fair deal? How are you treating me? Are you ethical? Intangibles can be felt as opposed to being measured. Every negotiator has both tangible and intangible interests in every negotiation. We're human, and we care.

[21:56] Adding intangible value to a negotiation does add value even though you can't put a dollar on it. Build a personal relationship with your client. Know what's essential to the other person and spend time with that. That adds value. Treating the other person might get you a concession in the contract.

[23:15] Everybody has things that are important to them. So, the more you know the other party… use it to your client's advantage, which is your job. You owe that to your clients to do that, as long as it's ethical and honest. We need to put everything into it that we can. Adding those intangibles is part of it.

[23:50] Monica shares another negotiating example. She called an agent who had just lost the family dog. She asked, "How can I help prepare the paperwork for our deal? I see you're having a difficult day." If Monica finds out that an agent needs something, and she can fill it quickly, why wouldn't she offer?

[24:58] Evan calls that win-win language, offering to work as a team. It doesn't take anything away from your client. It's also called being a good human!

[25:59] If you're not people-oriented and trying to negotiate with someone who is, it's like you're bringing friction to the table. You've got to take responsibility and adjust how you show up for this person and make them feel more comfortable.

[26:16] Because Monica's a people person, sometimes she has to tell herself to "zip it" and do her job because she sees the other person doesn't want to chat today.

[27:06] Evan talks about the negotiation environment. You have to know the numbers; you have to know your market. As a market professional seeking to get paid to represent clients, you have to know it. Evan refers to the pandemic lockdown and how, after that, buyers went gangbusters.

[27:47] There were way too many buyers trying to buy the same houses. That led to the seller's market. It's our job to help our clients, and sometimes the other negotiators, understand the market dynamics so they understand their negotiating position. Once they do, then you can move on to strategy.

[28:15] Our opportunity to shine is helping our clients develop a negotiating strategy once they understand their position. Evan gives the example of explaining to a buyer what it looks like to buy in a seller's market with multiple offers, bidding wars, and buyers getting creative to sweeten the pot.

[29:06] Before you start showing houses, your buyer needs to understand that so they know how to behave once they get into the market if they want to buy. When the right house comes up at the right moment, they need to know how the market affects their position.

[29:34] Monica now calls the market an artificial buyer's market. In some towns, at some price points, houses stay on the market for a little while longer. But we're not at that four-to-six-month range for most people.

[29:51] In an extreme market, where one party is at an extreme disadvantage, and the other is at an extreme advantage, negotiators can help look for a win-win. It won't be in the money because the extreme advantage is there. That's where niceness and empathy make all the difference.

[31:01] Evan comments that the win in an extreme buyer's market is just selling your house. In an extreme seller's market, the buyer gets the house. You won't be looking for the best deal in either situation.

[31:23] Once you accept those negotiation parameters and start trying to find a house, everything else is on the table. "I know I'm not going to get a great deal here, but here's what else is important to me." Knowing what's important on the other side might get you the house or the sale.

[31:50] We must get through the negotiator to get to the decision-makers. You've got to get the other agent "on your side." Sometimes, we have to coach them through their job and deliver that information to their client in a way that gets their client those secondary wins.

[32:38] When Evan and I return in our next episode, we will discuss the conversations between the agents and their clients. That's a different negotiation environment. Join us on the next one!

[32:55] Evan's final word: "Right now, so much is changing! Negotiating is an important part of navigating these changes, whether we are negotiating to get hired on either side or helping the clients who hire us navigate what the negotiations will look like now that we have different practices."

[33:21] It's a whole new ball game that creates opportunities for people to step in and thrive! I get kind of excited about having these conversations! I'm looking forward to continuing on the next one with you!"

[33:39] Thank you so much to Evan Fuchs for sharing his wisdom with us! You can find more opportunities to learn about negotiation at Learning.REALTOR. There are micro-courses there, taught by Evan and by Lynn Madison.

[33:51] You can also link to the real estate negotiation expert certification class from there. Please attend some negotiation classes. Your associations are offering lots of opportunities right now. If it's not your local one, you may be able to travel a little bit and find one nearby.

[34:09] Also, there are some great books on it. Read some books or watch some of the amazing online videos to help teach you great negotiation tools.

[34:17] As you're moving through the changes in the industry, don't miss the opportunity to learn from your experiences as you're having conversations with your clients, your friends, and your family, hear what they're saying, and that will also help you be more prepared.

[34:33] Thank you so much for joining us! Come back and join us for Part 2. I'm Monica Neubauer for the Center for REALTOR® Development, and I hope you are busy out in the field selling lots of properties!

Tweetables:

"While most people focus on price, it's just one element of the negotiation. So we want to think more about value. What does that price plus the other terms and everything else involved in the negotiation represent as a value package?" — Evan Fuchs

"Everybody has things that are important to them. So, the more you know the other party, the more use those conversations to your client's advantage, which is your job. You owe that to your clients to do that, as long as it's ethical and honest." — Evan Fuchs

"If you're somebody who's not people-oriented, and you're trying to negotiate with someone who is, it's like you're bringing friction to the table. You've got to take responsibility and adjust how you show up for this person and make them feel more comfortable." — Evan Fuchs

"Whether negotiating to get hired on either side or helping the clients who hire us navigate what the negotiations are going to look like now that we have different practices, it's a whole new ball game, and that creates the opportunity for people to step in and thrive!" — Evan Fuchs

Guest Links:

Evan Fuchs, Broker/Owner of Bullhead Laughlin Realty, Speaker, Educator

NAR Resource Links

ABR® Accredited Buyer's Representative

Additional Links:

Crdpodcast@nar.realtor

Crdpodcast.REALTOR

Learning.REALTOR — for NAR Online Education

Training4RE.com — List of Classroom Courses from NAR and its affiliates

CRD.REALTOR — List of all courses offered

Host Information:

Monica Neubauer

Speaker/Podcaster/REALTOR®

Monica@MonicaNeubauer.com

MonicaNeubauer.com

FranklinTNBlog.com

Monica's Facebook Page: Facebook.com/Monica.Neubauer

Instagram: Instagram.com/MonicaNeubauerSpeaks

Guest Bio

Evan Fuchs ABR, CRB, CRS, GRI, RENE, RSPS, SRS, e-PRO

Evan Fuchs speaks nationally on leadership, sales, strategic planning, and team-building. A recognized industry leader with 28 years of experience, Evan is a past state president, four-time REALTOR® of the Year, and has been the broker/owner of Bullhead Laughlin Realty in Bullhead City, AZ, since 1999.

Evan combines his experience in business and leadership with a down-to-earth style to deliver engaging and actionable programs. In addition to designations and certifications, such as the Accredited Buyer Representative, Certified Residential Broker, and Real Estate Negotiation Expert, Evan presents and develops custom programs, including the Arizona Leadership Training Academy. He is also a John Maxwell Certified Leadership Trainer.

A proud dad, accomplished concert-goer, and lifelong learner, Evan loves collaborating with individuals and teams who aspire to produce their best work.