Today’s topic is so essential: negotiation! It has always been important. As our markets have  been shifting and industry changes are happening, we need to go back to remembering the basic  and core tenets of good negotiation while also understanding the nuanced parts of that shift  within the market and the specific needs of our clients. 

My guest today, Evan Fuchs, is a 28-year award-winning REALTOR® and industry leader from  Bullhead City, Arizona. Negotiation is one of those topics we need to learn about all the time.  Unless you’re writing a book on negotiation, I suggest more education is helpful. I love learning  from skilled negotiators wherever I come across their books or meet them, like Evan or even some  of my clients, who teach me new ideas and angles to consider in my negotiation. Evan and I both  believe in the long-term value of win-win negotiations in real estate. 

Evan shares insights on building relationships and finding mutually beneficial outcomes. We  discuss the importance of offering options, how crucial it is to get professional training, and the  value of tangible and intangible negotiation elements. Evan will tell you what those are. Let’s learn together! 

We are releasing this interview in two episodes. This is Part 1. 

[2:04 ] I am so glad to have Evan Fuchs with us today on the podcast! Welcome, Evan! 

[2:12 ] Evan is one of the very successful nice guys! If you ever get to meet Evan, talk to him. He’s  delightful, smart, and friendly. We’re going to talk about negotiation, and he is the perfect person to have  with us to talk about relationship negotiation because he’s kind and respectful. 

[2:33 ] We will discuss a win-win negotiation atmosphere and why that’s good. Evan, you’re a 28-year  veteran, broker-owner, board member extraordinaire, association president, and winner! (Evan says that  introduction will put a pep in his step!) 

[3:05 ] Monica describes her impostor-fighter shelf of awards and statues that remind her that she’s  awesome at her job and connected. She recommends you have a shelf like that, and whenever you need  a boost, look at your shelf and say, ‘Yeah, I got this’! 

[3:35 ] Evan heard Monica talk about the importance of celebrating in one of her podcast episodes. Evan  is totally about celebrating, even little victories.  

[3:52 ] The win-win negotiation model is a mindset that negotiators adopt. Instead of trying to compete  against somebody, they take responsibility for building a good relationship with the other negotiator to  work together to find good outcomes for everybody. 

[4:47 ] Sometimes, one party does get a better deal, but can you do something to let the other party feel  like they also have a good outcome?

[5:14 ] Dan says that options give us power. If I have the myopic view that this is the outcome that’s good  for me, and I can’t get you to agree with that, then the deal’s dead, but if we can work together and try to  find other ways, then we have a chance of keeping the deal alive and getting to the closing table. 

[5:42 ] It’s about how to help you get what you want so I can get what I want. Let’s create many ways to  get there and find the best one. 

[5:51 ] Everybody wants a deal. You may be working with a client looking at a transaction like a war. You  have to help them find options and negotiate so both parties are happy with the outcome. Monica reminds  agents that we must train ourselves and our clients to negotiate well. 

[7:06 ] Evan says that one out of four buyers want their buyer’s agent, above everything else, to negotiate  for them. They would rather you be a good negotiator than be good at finding them a house. Monica  invites you to improve your negotiating skills. Promote them as part of your value. 

[8:43 ] In this episode, we will keep the buyer’s agent negotiating with the seller’s agent for their clients as  our context. In Episode 2, we will discuss the agents negotiating with their clients for various things. 

[10:09 ] Evan explains the tangibles and intangibles of negotiation. The top-line purchase price is tangible.  There can also be a concession further down in the contract. That is also tangible and measurable. The  things you put in the blanks on a contract refer to something measurable and tangible. 

[11:21 ] Price is just one element of the negotiation. Think of the price, terms, and everything else involved  in the negotiation as representing a value package. Look at the bottom-line number and what you  exchange to get to that number. That’s when you deal with both tangibles and intangibles. 

[12:23 ] Value negotiating is where I offer something to you that’s of higher value to you than it is to me.  This could be like moving up the closing date if you are in a hurry. We trade it for something of low value  to you but high value to me. That creates a win. 

[14:00 ] One of Monica’s favorite negotiations was between a buyer who offered under the listing price and  a seller who wanted the list price. She wrote a contract with an expiration time that if the seller could get  the list price from another buyer within a week, they could do that; otherwise, they would accept this offer. 

[15:41 ] Evan considers that a smart, creative negotiation. Monica’s client did get the house after a week,  while the seller had time to find another offer, which did not come.  

[16:08 ] Evan notes that considering the options takes time. To develop that kind of strategy, be prepared,  know what you’re doing, and spend time with the market, the property, and the client. Spend time,  especially with your client, so you don’t miss the options that may be meaningful to them. 

[17:14 ] Monica thinks some agents don’t realize that the agent-to-agent relationship is valuable. The  buyer’s agent has some influence when the seller’s agent is looking at multiple offers. The relationship  history matters both in large markets and small ones. 

[19:13 ] Monica and Evan discuss how personal property becomes a negotiating point. Monica says  agents in Tennessee must let their buyers and sellers negotiate personal property. Evan believes the  furniture owner places a higher value on it than the buyer.

[20:42 ] Monica cautions her listeners that if you negotiate anything beyond appliances and attached  things, make sure you talk to your broker and know how that works in your state and local market. 

[21:11 ] Evan says intangibles are things that can’t be measured, that you can’t quantify. Is this a fair  deal? How are you treating me? Are you ethical? Intangibles can be felt as opposed to being measured.  Every negotiator has both tangible and intangible interests in every negotiation. We’re human, and we  care. 

[21:56 ] Adding intangible value to a negotiation does add value even though you can’t put a dollar on it.  Build a personal relationship with your client. Know what’s essential to the other person and spend time  with that. That adds value. Treating the other person might get you a concession in the contract. 

[23:15 ] Everybody has things that are important to them. So, the more you know the other party… use it  to your client’s advantage, which is your job. You owe that to your clients to do that, as long as it’s ethical  and honest. We need to put everything into it that we can. Adding those intangibles is part of it. 

[23:50 ] Monica shares another negotiating example. She called an agent who had just lost the family dog.  She asked, “How can I help prepare the paperwork for our deal? I see you’re having a difficult day.” If  Monica finds out that an agent needs something, and she can fill it quickly, why wouldn’t she offer? 

[24:58 ] Evan calls that win-win language, offering to work as a team. It doesn’t take anything away from  your client. It’s also called being a good human! 

[25:59 ] If you’re not people-oriented and trying to negotiate with someone who is, it’s like you’re bringing  friction to the table. You’ve got to take responsibility and adjust how you show up for this person and  make them feel more comfortable. 

[26:16 ] Because Monica’s a people person, sometimes she has to tell herself to “zip it” and do her job  because she sees the other person doesn’t want to chat today. 

[27:06 ] Evan talks about the negotiation environment. You have to know the numbers; you have to know  your market. As a market professional seeking to get paid to represent clients, you have to know it. Evan  refers to the pandemic lockdown and how, after that, buyers went gangbusters. 

[27:47 ] There were way too many buyers trying to buy the same houses. That led to the seller’s market.  It’s our job to help our clients, and sometimes the other negotiators, understand the market dynamics so  they understand their negotiating position. Once they do, then you can move on to strategy. 

[28:15 ] Our opportunity to shine is helping our clients develop a negotiating strategy once they  understand their position. Evan gives the example of explaining to a buyer what it looks like to buy in a  seller’s market with multiple offers, bidding wars, and buyers getting creative to sweeten the pot. 

[29:06 ] Before you start showing houses, your buyer needs to understand that so they know how to  behave once they get into the market if they want to buy. When the right house comes up at the right  moment, they need to know how the market aff