How to Threaten Properly During Property Negotiations

When negotiating a sale, a threat might seem to be a high risk, dangerous, and possibly illegal strategy to take, but nothing could be further from the truth. First, get the idea out of your head that a threat is about bullying and/or physical intimidation. The kind of threat we’re talking about has absolutely nothing to do with that sort of cretinous behavior. A threat in the context of property negotiation is about rewards withheld or opportunity lost.

In the midst of a property negotiation, it is your job as a real estate professional to make sure the client is in possession of all the facts, and does not make a decision based on pure emotion. The nasty part of all this is that no one likes a threat. You don’t like to make them or receive them – at least, you shouldn’t – but there’s no denying that the judicious use of what we’ll term a “threat” can be a valuable tool in your kit.

In the first place, you have to believe that what you’re trying to accomplish in any particular situation is beneficial to your client. We’re not sure how it works in your state, but it seems we read somewhere in real estate training that your primary duty is to look out for the interest of your client, which means you must not resort to tactics seen as bullying simply to close a deal. If we need to explain to you why that’s immoral and unethical, you’re in the wrong business.

Let’s say you have a hard-nosed client intent on lowballing an offer for a plum property. It is your duty to remind him of the possible consequences of his action, namely someone else might swoop in and steal that great place right out from under his nose, where a slightly higher offer might get him the thing without a fight. Often the phrasing of a “threat” is, “If you don’t ______, there’s a good chance that _____ will happen. Fill in the first blank with his behavior and the second with the unpleasant consequence.

Have you just issued a threat? Under the technical definition of the word, perhaps. In reality, you’re simply providing honest information based on your professional experience.

The Bonus Commissions Team

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