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Negotiation serves as the single most important factor in securing the best deals for buyers. But more than just haggling over prices, it’s a strategic dialogue that influences the course of business transactions. Master this skill, and you not only satisfy client expectations but also bolster your reputation as a knowledgeable and effective buyer’s agent.
We sat down with Mat Steinwede to discuss his negotiation tactics to become a better buyer’s agent. As a top agent at McGrath Terrigal with a formidable career spanning over 23 years, Mat is renowned within the McGrath network for his extensive industry knowledge. His mastery of the art of negotiation has made him a leader in the Australian real estate scene.
Mat believes that many agents make the mistake of focusing purely on numbers, forgetting that behind every negotiation are human emotions and unique stories. Recognising this gap, he developed his Real Estate System — a coaching method that equips agents with the skills to communicate effectively and close deals that satisfy all parties.
But what are some of the tactics that make Mat’s system so effective? Let’s start with his three standout strategies.
1. Listening and understanding beyond words
The relationship starts as soon as you meet your client. Mat highlights the importance of understanding not just what buyers say, but the deeper messages behind their words.
He explains, “It starts by listening to what the buyer is saying and understanding the message that they’re getting across to you. Not so much the words that they are saying, but the feelings around what they have experienced before, what they want, and where they are going. It’s about really listening and grabbing on to that information.”
This understanding encompasses more than just hard facts like fees, terms, and concessions. Focus on piecing together a detailed picture of the client’s desires and intentions. The success of any buyer-agent relationship hinges on gathering vital information during these initial conversations, which helps in crafting an approach uniquely tailored to each client.
Example: If a client mentions dissatisfaction with their last house hunt, emphasise transparency and proactive communication to build trust and ensure they feel understood.
2. Use reference points in negotiations
Framing conversations through reference points is essential in understanding what buyers truly value. Mat advises, “Reference points and framing: this is what negotiation is about. What they are saying to you is that there are important characteristics which they would like to transfer to this area that they want to move to. I always ask people to tell me about the house they live in because this is a reference point for them.”
He further suggests diving into details that matter most to clients, like pet-friendly areas or schools. Mat explains, “You have got to get into their world; it’s not about just racing out and helping them find a house in their budget. It’s really asking those questions about their kids and their dog. Is a dog-friendly beach important to them?” This ensures meaningful interaction and primes agents for successful negotiations down the path.
Example: When working with a pet owner, focus negotiations around properties with amenities like nearby parks, instead of encouraging unnecessary compromises on these pivotal preferences.
"It starts by listening to what the buyer is saying and understanding the message that they’re getting across to you. Not so much the words that they are saying, but the feelings around what they have experienced before, what they want, and where they are going. It’s about really listening and grabbing on to that information."
3. Maximise your success with information and engagement
A thorough understanding of client motivations can greatly enhance negotiation outcomes. Mat suggests limiting active client engagements to between 15 to 20 at one time to allow adequate focus. He shares, “Every time I take them out to show a house, it’s like I’m gathering a bit more info. I work with people for quite a long time, looking for what fits them.”
Mat recalls a client who had long dreamed of living by Avoca Beach. Over two years, he meticulously identified the precise needs and desires she had for her ideal property. Mat recounts, “She paid $1.8 million, and it was worth $1.3 million, but to her, it didn’t matter. She knew it was more than what it was probably worth, but her number one criterion was for her kids to walk across the road to the beach – and it was 20 steps to the beach.”
Through his approach, agents can learn a valuable lesson: successful negotiation is not defined only by numbers but by fulfilling the unique lifestyle aspirations of clients. By prioritising authentic communication and a nuanced grasp of each client’s hopes, Mat’s Real Estate System transforms the role of an agent from a mere facilitator to a trusted advisor. The result? Client experiences and connections that are both rewarding and meaningful in the long term.
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