NAR Negotiation & Closing Techniques 2 — Questions and Answers
Question 1: A buyer submits an offer $20,000 below list price. The seller wants to counter at full price. As the listing agent, what negotiation strategy best serves the seller?
- Accept the low offer to avoid losing the buyer
- Counter at list price with no concessions
- Counter slightly below list price while highlighting property value (Correct answer)
- Reject the offer without responding
Correct answer: Counter slightly below list price while highlighting property value
A strategic counter just below list price keeps the buyer engaged while signaling the seller's position and property value.
Question 2: What is the 'nibble' technique in real estate negotiations?
- Asking for small additional concessions after the main deal is agreed upon (Correct answer)
- Making a very low initial offer
- Refusing to negotiate on price
- Requesting multiple counteroffers simultaneously
Correct answer: Asking for small additional concessions after the main deal is agreed upon
The nibble involves requesting small extras (closing costs, repairs, appliances) after the buyer and seller have already agreed on the main terms.
Question 3: A buyer's agent presents an offer with a 24-hour expiration. From a negotiation standpoint, what is the primary purpose of this deadline?
- To comply with state law requirements
- To create urgency and prevent the seller from shopping the offer (Correct answer)
- To give the buyer time to arrange financing
- To allow the listing agent to present competing offers
Correct answer: To create urgency and prevent the seller from shopping the offer
Short offer deadlines create urgency, limiting the seller's ability to use the offer to solicit competing bids.
Question 4: Which closing technique involves summarizing all agreed-upon benefits before asking for the final decision?
- Trial close
- Assumptive close
- Summary close (Correct answer)
- Urgency close
Correct answer: Summary close
The summary close recaps all the positive points and concessions already agreed upon to build momentum toward final commitment.
Question 5: During negotiations, a seller says 'I need to think about it.' The BEST agent response is to:
- Leave immediately and wait for their call
- Ask what specific concerns remain unaddressed (Correct answer)
- Pressure them to decide on the spot
- Reduce the price immediately to prompt a decision
Correct answer: Ask what specific concerns remain unaddressed
Uncovering the specific objection behind 'I need to think about it' allows the agent to address the real barrier to closing.
Question 6: What does BATNA stand for in negotiation theory, and why is it important for real estate agents?
- Best Alternative To a Negotiated Agreement — knowing it strengthens your negotiating position (Correct answer)
- Buyer's Agent Terms and Negotiation Allowance — a commission structure
- Basic Appraisal Terms for Negotiation Analysis — an appraisal standard
- Brokerage Agreement for Terms Not Agreed — a contract clause
Correct answer: Best Alternative To a Negotiated Agreement — knowing it strengthens your negotiating position
BATNA (Best Alternative To a Negotiated Agreement) defines your fallback if talks fail; knowing yours and the other party's improves leverage.
Question 7: A listing agent learns the seller must close within 45 days due to a job relocation. How should this information affect negotiation strategy?
- Share this with buyers to generate sympathy offers
- Keep it confidential, as it weakens the seller's leverage (Correct answer)
- Advertise the motivation to attract more buyers
- Use it to justify a higher asking price
Correct answer: Keep it confidential, as it weakens the seller's leverage
Revealing seller motivation gives buyers leverage to negotiate a lower price or more concessions, so agents must protect this confidential information.
NAR Negotiation & Closing Techniques 2
A buyer submits an offer $20,000 below list price.
The seller wants to counter at full price.
As the listing agent, what negotiation strategy best serves the seller?