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Negotiations in real estate can sometimes reach a challenging standstill. Whether it’s on the auction floor or during a private treaty sale, a deal can often hinge on a small gap – $5,000, $10,000, or $15,000. When neither party is willing to move, Adrian Bo, CEO of Adrian Bo Real Estate Training and Auctions, suggests shifting the conversation from dollar amounts to percentages to help both buyers and sellers see the bigger picture.
Why percentages work
When a buyer or seller hears they need to adjust their offer or price, respectively by $15,000, it can seem like a significant amount. However, when framed differently – as just 2 per cent of the total price – it changes their perception.
Instead of saying:
“You’re $15,000 apart.”
Try:
“The difference here is just 2 per cent of your asking price. Does it really make sense to walk away over 2%?”
This method helps both buyers and sellers reassess their position and focus on the overall value of the deal rather than fixating on a specific figure.
The real cost of holding out – what is the ‘opportunity cost’?
A crucial part of negotiation is helping clients understand the opportunity cost of not moving forward. Whether they are buying or selling, delaying a decision has real consequences.
For sellers, the risks include:
- More time on market – The longer a property sits, the more likely buyers are to question what’s wrong with it.
- Higher days on market – A prolonged campaign can lead to reduced buyer interest and downward pressure on price.
- Increased anxiety – Uncertainty over whether the property will sell, adding stress to the seller’s personal and financial situation.
For buyers, the risks include:
- Lost time – A longer search means less focus on core business, family, and other priorities.
- Market fluctuations – If prices increase or interest rates change, today’s hesitation could cost them significantly more later.
- Missed opportunities – The perfect property might not wait for them, and alternatives may not meet their needs.
Helping buyers and sellers weigh these factors can shift their mindset. Is holding out over a small percentage worth the added stress, uncertainty, and risk?
The market factor
No one has a crystal ball to predict exactly where the market is heading. However, it’s important to remind clients that if the market fluctuates by 5 per cent due to increased stock or changing conditions, they could find themselves in a much worse position than if they had accepted a deal that was only 2 per cent below their ideal price.
For sellers, waiting for a better offer that may never come is a gamble. For buyers, missing out today could mean paying significantly more in a rising market.
Final thoughts
Negotiation isn’t just about numbers – it’s about perspective.
- Talking in percentages rather than dollar amounts helps clients see the negotiation in relative terms.
- Highlighting the opportunity cost of waiting makes it easier for buyers and sellers to make informed decisions.
- Recognising market fluctuations reinforces why securing a deal today might be better than taking a risk on an uncertain future.
By using these strategies, agents can navigate difficult negotiations, help clients focus on what really matters, and ultimately secure better outcomes for both buyers and sellers.
Adrian Bo is the CEO of Adrian Bo Real Estate Training and Auctions.
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