On this week’s episode of the RealTrending Podcast, host Tracy Belt speaks with Debbie de Grote, founder of Forward Coaching, a leading real estate and business coaching company.
The two explore strategic negotiation skills in the modern real estate market and best practices for agents adapting to new rules mandated by an industry-changing settlement by the National Association of Realtors (NAR). De Grote also details new challenges for agents, common mistakes, and how to avoid them.
To begin the conversation, Werth asks De Groat for some background on himself and the Forward Coaching brand. De Grote began his career at the age of 18, selling real estate in Los Angeles and neighboring Orange County as a top agent at Century 21. I then found a passion for teaching agents how to succeed in the industry and transitioned into coaching. After leading several coaching companies, Mr. De Grote founded Forward Coaching, which focuses on strategic lessons taught by veteran agents.
Currently, Forward Coaching focuses on teaching new agents how to negotiate with buyers and work with sellers and listing agents on concessions. But De Grote points out that it’s not just new agents who need coaching. The company is also ramping up traditional and modern coaching lessons for experienced agents looking to keep pace with the industry after the NAR settlement.
“Even the best companies are getting a little rusty because when you list on the market and you get 25 offers a day, the negotiations over the last few years have been pretty minimal.” Grote says. “We are working out the details, but there is no need for advanced negotiations.”
She believes that mid-level agents may not have strong negotiation skills because they have primarily used MLS listings to market properties to buyers. Additionally, even veteran agents may need retraining.
Werth referred to an article urging appraisers to contact real estate agents directly and asked de Grote how to handle such calls.
She urges agents to respond to these calls without delay, as well as contact closing agents to compare previous sales prices to current appraised values. This is one of several adjustments the attorney made after the NAR settlement. De Grote is optimistic about the future of the industry, saying everyone has adapted well, although the biggest adjustments will involve paperwork.
Werth cites a common theme of confusion among buyer agents who withdraw offers if concession agreements are not included. De Grote says untrained agents can be left behind if they don’t take time to improve.
Velt and De Grote then examine negotiation tactics for buyer and seller contract forms. De Grote provides insight into her own experience in negotiating these agreements.
“I wanted to put the fee in the contract with the buyer and make the money, so I said that’s fine as long as the seller pays it. If they don’t pay, you have to pay. And, you know, it worked,” says De Grote.
She shares three steps for negotiating commissions in buyer-seller agreements. Step 1 is a deep dive into the buyer’s needs and goals. Step two is marketing your services as a buyer agent. The final step is to inform your client about their payment options. De Grote warns against making the costly mistake of approaching negotiations with an aggressive attitude rather than a calm and tactful approach.
To conclude the conversation, De Grote talks about diversity in the industry. She encourages listeners to ask probing questions to explore sellers’ motivations, hone listening skills, and communicate without jargon. She also encourages prospective agents to research different markets and find a niche for a lucrative career.
