Hey everyone! No matter what business you’re in negotiation and strategy are critical to your success.
Managing expectations, skillfully handling objections, and knowing when to walk away are some of the most important lessons you will learn.
I was ecstatic to sit down with Steve Trang to discuss these very topics. You may know Steve from Real Estate Disruptors, but he is also an Agent, Investor, expert negotiator, and a great leader.
He’s going to share with us how he manages his business and what he’s learned as the leader of a very large brokerage.
Read the Full Show Notes Below…
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7 Surefire Negotiation Tactics to Close Your Next Deal + How to Lead A Team w/ Wholesaler and Brokerage Owner Steve Trang
Steve Trang wasn’t always in real estate. In fact, he was an engineer for many years before he found his true calling. Business was always in his DNA. In 8th grade, he was the kid on the playground selling candy for profit. In the early 2000s, Steve and his buddies began buying rental properties.
He spoke to an agent, who made it sound easy and he dove in with both feet. He got his license and realized the real estate business wasn’t as easy as he thought.
Then a lightbulb went off. He wasn’t supposed to be an agent. He was supposed to be a business owner who happened to sell real estate. He started his own brokerage, mastered negotiation and leadership, and hasn’t looked back since.
Steve dropped a lot of knowledge during our call and I encourage you to adopt some of his strategies into your business as we roll into the new year.
The Art of Negotiations
When pursuing real estate, your greatest asset will be the ability to negotiate. With the market becoming flooded with competitors, you will need to stand out and be able to stand out, while negotiation the best deals for yourself. To be blunt, Steve and his team find success by just doing things better.
Meeting With Clients
When Steve goes to meet with a client, he sets the expectations from the first phone call. He lets them know that when he is coming to the house to see it, he is coming with the intention to buy.
He lets them know that it’s ok for them to say no and on the flip side, their house may not be one that his company ends up buying. He always asks potential sellers to keep him posted if something should change.
But he doesn’t just ask to be kept in the loop, instead, he asks how they will keep him in the loop. This small change of phasing encourages people to actually follow up and be in touch regarding their decision to sell.
Don’t ask if they will let you know… ask HOW they will let you know.
People are usually selling their house for a reason. Maybe they can’t afford the payments, maybe they received an inherited property, or maybe they are the owner of a house that is falling apart.
When meeting with a potential seller, Steve and his team will ask questions to really bring their pain into the light. They will ask to know more about the situation, how long it has been going on, what’s going to happen, and if anyone knows about their problem.
This can get uncomfortable fast and can really make the seller stop and think about how big their problem really is. They might think foreclosure is no big deal, but once you’ve put them through the pain funnel, they will see just how great the ramifications of a foreclosure can be.
Before the seller has a chance to put their objections out there, Steve will do it for them. He lets buyers know that time, money, and people will try to stop them from working together.
They might say that they need to talk to their sister about it first in which case Steve will do a bit of role-playing, asking what do they think their sister will say? They try to have that conversation without the seller actually contacting their sister.
Find Out What They Need
Steve doesn’t just throw an offer out there. He finds out what they need in order to solve their problem.
First, he makes sure that there isn’t another decision-maker who is absent from the meeting. Then he will ask how much they need to get out of the hole they are in. The home may be worth $150k, but if they need $30k to pay off debt, that is where he will start.
Using Only Questions
During the meeting, Steve will primarily use questions. This helps the buyer feel like they are more in control and not being told what to do.
- If I give you $30k, what will happen next for you?
- You don’t want this offer in writing right now, do you?
- What would your sister say about this deal?
- What will happen if you don’t find a solution?
Asking the right questions puts them in the driver’s seat. In many cases, they will ask for the contract right then and there.
Caring About The Seller
Steve is there to help homeowners solve a problem. He doesn’t go in with a clipboard, making notes of all the property flaws. Many homebuyers do this and it can be a bit antagonistic.
As Steve puts it, the other buyers are more like contractors, while he goes in as more of a psychologist. Who is the buyer going to feel more comfortable talking to? Even in the post-sale, give them the chance to cancel.
Help them feel confident in their decision to work with you. Truly care about the seller and do what you can to serve them better.
Lessons In Leadership
Steve knows a thing or two about leadership. He’s currently running a very successful brokerage with over 130 agents, a title company, a wholesaling business, an app, and a coaching business.
Managing all of these endeavors is a lot of work, but with the rights leaders in place and the right coaching, Steve has been able to find success with all of his businesses.
A Day In The Life
Steve aims to get up every day at 4:30. This gives him the time to review P&L’s or to complete a large task that has been a roadblock for others within his company. He has a 1.5 meeting with his business partner every Monday at 9 am sharp.
He will then spend 5-6 hours mentoring within the brokerage. Over the years, he has seen guys start out making $30k a year, and those same individuals are now making over $300k annually.
Good Leaders Ask Great Questions
If you were to ask your employees about you and your management style what would they say? Do they feel that you care about them? Are you able to help them? Do they believe that you truly want the best for them? It’s important to ask these questions and if any answers are no, then you need to make some major corrections.
Spouses usually cheat because they feel unappreciated and it’s the same in business. Truly caring for your team and making the decisions that will benefit them as opposed to your wallet is a sign of a great leader. Investing in your team today will bring you a more prosperous tomorrow.
Everything Steve does within his business goas through EOS. His meetings are all level 10 traction where attendees discuss:
- Personal wins
- Business wins
- Identify, discuss, solve
At the end of the meeting, everyone rates how things went. Running meetings in this fashion has led to greater productivity and less wasted time.
This January, Steve is hosting a workshop for those who want to dive deeper into sales, negotiation, and lead-gen. I encourage everyone to check it out and to go follow Steve and check out his awesome podcast!
This is the best time to be alive and this is the best country to live in. Get out there and take advantage of the opportunity out there for you. Get rid of the negativity. The only thing holding you back is your own mind!
Be sure to check out CarrotCast.com to read the full blog post and to connect with Steve!
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Mentioned In This Episode:
- Never Split The Difference by Chris Voss
- The Pumpkin Plan by Mike Michalowicz
- The Carrot Energy Audit
- Information about Steve’s workshop
- EOS Traction Tools