Negotiation in real estate is not simply about pushing for a number. Some of the most effective negotiations begin with something much more fundamental: understanding what matters to the people on the other side of the conversation.
That was one of the ideas explored at the Master Class Roadshow panel at the Tahoe Economic Summit, where the Resolve Group’s Miranda Junowicz joined fellow Compass agents Andy Bovender, Moya Skillman, Jon Granston, and Marc Hernandez for a discussion around negotiation, communication, and client relationships.
The panel brought together perspectives from different real estate markets across the country, but many of the principles translate directly to representing buyers and sellers here in Silicon Valley. Listen carefully. Understand what is driving the other side. Ask better questions. Communicate clearly. And recognize that reaching the best possible outcome often starts well before anyone begins discussing price.
Here is a closer look at those principles and how they apply in a real estate transaction.
What makes someone a great negotiator in real estate?
A strong real estate negotiator needs to understand both the deal and the people involved in it.
Price matters, but a transaction can involve much more: timing, contingencies, financing, inspections, possession, expectations, and the priorities of multiple parties. The more clearly an advisor understands those priorities, the more intelligently the conversation can move forward.
The negotiation framework shared at the Summit emphasized several communication techniques:
Calm the conversation first. When a conversation becomes reactive, productive problem-solving becomes harder.
Label the concern instead of immediately arguing against it. Identifying what appears to matter to the other party can encourage them to explain their position.
Listen and mirror. Sometimes repeating a key phrase and allowing the other person to elaborate reveals more than immediately responding.
Seek understanding, not a quick “yes.” A productive conversation is more valuable when the other side genuinely feels understood.
Ask “how” and “what” questions. Open-ended questions can uncover possible solutions without unnecessarily putting someone on the defensive.
Why is listening important in a real estate negotiation?
Because the stated position is not always the whole story.
A buyer may focus on price when timing is equally important. A seller may appear firm on one term while caring more about certainty elsewhere in the transaction. An inspection discussion may initially center on a repair when the underlying concern is confidence in the condition of the home.
Listening gives an advisor the opportunity to understand those distinctions.
One of the central ideas in the Summit negotiation material is to accurately identify and acknowledge the other party’s concern before moving to your own position. The goal is to reach the point where someone feels that their perspective has actually been understood.
That does not mean agreeing to everything the other side wants. It means gathering better information before deciding how to respond.
What is tactical empathy in real estate?
Tactical empathy is an approach to negotiation that focuses on understanding and articulating another person’s perspective without necessarily agreeing with it.
In practice, that might mean recognizing a concern, summarizing it accurately, and then asking a thoughtful question about how to move forward.
The Summit handout recommends tentative language such as “It sounds like…” or “It seems like…” when identifying the other side’s concern. That leaves room for correction and encourages the person to explain what is actually driving their position.
For a real estate advisor, that information can be valuable. Negotiation becomes less about making assumptions and more about understanding the motivations and constraints surrounding the transaction.
Why are questions so powerful during a negotiation?
The right question can reveal information that another counteroffer cannot.
The framework discussed at the Summit favors questions beginning with “how” and “what.” Instead of immediately challenging a position, these questions encourage the other party to think through the issue and explain what could make a solution workable.
For example:
“What is most important to your clients about this offer?”
“How can we structure this so it addresses that concern?”
“What about these terms is creating hesitation?”
Those questions do not guarantee agreement. They create information. And in a transaction where each side may have different priorities, better information can create more paths toward a workable outcome.
Is real estate negotiation only about price?
No. Price is one component of an offer, but real estate negotiations can involve a much broader set of terms.
Depending on the transaction, buyers and sellers may be evaluating timing, contingencies, financing, inspections, closing logistics, and other conditions alongside the purchase price.
That is one reason communication matters so much. Two offers with similar prices can present very different considerations for a seller. Likewise, a buyer may care deeply about terms that are not obvious from the purchase price alone.
A thoughtful negotiation looks at the transaction as a whole and identifies where the parties’ priorities may align.
Why does staying calm matter when buying or selling a home?
Real estate decisions can carry significant financial and personal weight. That makes it easy for a conversation to become emotional, especially when an unexpected issue arises.
The Summit negotiation framework begins with a simple principle: calm first. Its reasoning is that reactive conversations make rational problem-solving more difficult. Slowing down the exchange creates room to understand the actual issue before responding to it.
That is also where an experienced advisor can add value. A client does not have to personally navigate every conversation taking place across a transaction. Their representation can help interpret information, communicate priorities, and keep the process moving when circumstances become complicated.
What does strong representation look like in a competitive real estate market?
It starts long before a counteroffer.
Strong representation means understanding a client’s priorities clearly enough to advocate for them, anticipating where issues may arise, communicating strategically with the other side, and knowing which questions need to be asked before making a decision.
It also requires judgment. Not every point deserves the same amount of resistance, and not every negotiation benefits from more talking. One of the simplest reminders in the Summit material is also one of the most useful: after asking the question, stop talking and listen.
For buyers and sellers in Palo Alto, Menlo Park, Atherton, Los Altos, Los Altos Hills, Portola Valley, Woodside, and throughout the Peninsula, that combination of preparation, communication, and advocacy becomes especially important when the stakes are high.
The Resolve Group advises clients throughout the process, from preparing a property or evaluating an opportunity through offer strategy, negotiation, and closing.
Thinking about buying or selling in Silicon Valley? Talk to the Resolve Group about your goals and how we can help you approach your next move.
Frequently asked questions
What makes a great real estate negotiator?
A great real estate negotiator understands the transaction while also listening carefully to the people involved. Strong negotiation involves identifying priorities, asking useful questions, communicating clearly, and evaluating the complete set of terms rather than focusing on price alone.
What is tactical empathy in real estate negotiation?
Tactical empathy involves understanding and articulating the other party’s perspective without necessarily agreeing with it. The approach can help uncover the concerns and priorities influencing a negotiation.
Why is communication important when buying or selling a home?
Real estate transactions involve multiple parties, deadlines, financial considerations, and contractual terms. Clear communication helps clients understand their options and allows their advisor to communicate their priorities effectively throughout the transaction.
Is negotiating a home purchase only about the sale price?
No. Depending on the transaction, negotiations can also involve contingencies, financing, inspections, timing, possession, closing logistics, and other terms. The overall structure of an offer can matter alongside its price.
How can a real estate agent help during negotiations?
An agent can help a client evaluate the complete offer or counteroffer, communicate with the other side, identify priorities, ask questions, and advise the client as circumstances change throughout the transaction.
Where does the Resolve Group work?
The Resolve Group serves clients across Silicon Valley and the Peninsula, including Palo Alto, Menlo Park, Atherton, Los Altos, Los Altos Hills, Portola Valley, Woodside, and surrounding communities.
What is the Tahoe Economic Summit?
The Tahoe Economic Summit is an industry event in Lake Tahoe that brings together real estate professionals for conversations, panels, and professional development. As part of the Summit, the Master Class Roadshow featured a panel with Compass agents from markets across the country, including the reSolve Group’s Miranda Junowicz, focused on negotiation, communication, and client relationships.