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In this week’s episode of the RealTrending podcast, host Tracey Velt sits down with Debbie De Grote, founder of leading real estate and business coaching company Forward Coaching.
The duo explore strategic negotiation skills in the modern real estate market and best practices for agents in adapting to the new rules mandated by the industry-changing settlement from the National Association of Realtors (NAR). De Grote also dives into new challenges and common mistakes for agents and how to avoid them.
To start the conversation, Velt asks De Grote for background on herself and the Forward Coaching brand. De Grote started her career at 18 years old, selling real estate in Los Angeles and neighboring Orange County as a top agent for Century 21. Following that, she transitioned into coaching after discovering a passion for teaching agents how to succeed in the industry. After leading a few coaching companies, De Grote founded Forward Coaching with a focus on strategic lessons taught by veteran agents.
Today, Forward Coaching focuses on teaching new agents how to negotiate with buyers and how to collaborate with sellers and listing agents on concessions. But De Grote notes that new agents aren’t the only ones in need of coaching. The company also reinforces both traditional and modern coaching lessons in experienced agents who are looking to keep pace with the industry following the NAR settlement.
“Even the best of the best have gotten a little bit rusty, because the last few years negotiations were rather minimal when you can put a listing on the market and have 25 offers in a day,” De Grote says. “You’re wrapping up the details, but that’s not requiring a high level of negotiation.”
She believes that intermediate-level agents may not have strong negotiation skills as they have mainly relied on MLS listings to market properties to buyers. And even veteran agents could need a refresher.
Velt mentions an article that urges appraisers to reach out directly to real estate agents and asks De Grote how she would handle such a call.
She urges agents to take these calls without delay, while reaching out to the closing agent to compare the previous sale price to the current appraised value. This is one of several adjustments that agents have made following the NAR settlement. De Grote is optimistic about the future of the industry and says everyone is adapting well enough, with the biggest adjustment involving paperwork.
Velt mentions a common theme of confusion among buyer’s agents who withdraw offers when there is no concession agreement included. De Grote says that untrained agents could get left behind if they do not take time to improve.
Following that, Velt and De Grote explore negotiation tactics regarding buyer-seller agreement forms. De Grote offers insight into her own experiences negotiating these agreements.
“I put the fee in the agreement with a buyer that I wanted to earn, and I said if the seller will pay, great. If we buy for sale-by-owner and they won’t pay, you’ll need to pay. And, you know, it worked,” De Grote says.
She shares three steps for negotiating fees in buyer-seller agreements. Step one involves diving into the buyer’s needs and goals. Step two involves marketing your services as a buyer’s agent. The final step requires you to advise your client of their fee-payment options. De Grote warns against making costly mistakes like going into negotiations with aggression instead of a calm, tactful approach.
To close the conversation, De Grote speaks to the versatility of the industry. She urges listeners to ask probing questions to discover their seller’s motivations, develop listening skills and communicate simply by removing jargon. She also pushes prospective agents to study various markets and find their niche to build a lucrative career.
