Skills of negotiation that ensure you stay winning in real estate

A huge bulk of negotiation stories that you hear frequently set negotiating parties at odd with each other, each party immovably standing their ground and being resolute in their stance, almost like players on opposing sports teams tugging at it relentlessly until the scoreboard declares a winner. Many new agents make the mistake of starting every negotiation as if they were going into battle. Not only will this annoy the listing agent you will likely need to work with again, but it can actually hurt your client’s interests as well.

Instead, learn how to take issues and focus on solutions, instead of turning everything into an adversarial crisis. In real estate, the scoreboard is the Naira amount paid or accepted, depending on which side you represent.

Would it shock you to know that there’s a third angle, that your clients care less about money than you think they do? It might be a revelation to you to know that you might earn or keep more money if you change your negotiation style from “win-all” to “value-based”. This is tested, trusted, it works.

So, distinguish yourself as a value-oriented negotiator, and be absolutely absorbed in the value that you offer or that the other party gets. One of the core challenges in negotiations is to identify value-creating moves: things that are cheap for you to give and valuable for you to receive, and vice versa. This is very true for real estate negotiations.

Have a thorough understanding of what both parties’ value and work with the other party to find amiable solutions that satisfy both sides. In almost every negotiation the more educated you are, the more likely you are to get what you want. It’s that simple. By looking at value holistically instead of being hyper-focused on one aspect of the deal – price – the negotiator is equipped to offer dynamic solutions to concerns and avoid challenges that may bring the transaction to a grinding halt.

Learn what the other party needs, not really why they are selling or buying, but what will satisfy them that they have a win-win sale. Put together the best deal so that the closing is smooth and successful.

Let’s furnish you some great ideas to set you up nicely on to your own value-based negotiations:

 

Be ready/Get your homework done
Way before you’re at the negotiation zone, what’s your strategy? You need to think deeply about how you’d want the discussion to unfold in your head.
What outcomes would you rather have? Who are you negotiating with and what would be an irresistible win for them that you can afford?
What am I missing to be effective? What key questions must I ask?
What information will I share and withhold from the other party?
What obstacles may arise during this negotiation?
When you walk into the room armed with a strong idea of the other party’s ideal outcome, you are a step closer to getting your ideal outcome. To get this information is easy, a phone conversation can supply you this easily. It’s important to keep a ‘Negotiations Preparation Worksheet’ handy with all the info that equips you for the negotiation.

 

In negotiations, there are no sides, as long as you can scale through the challenges
Negotiations really shouldn’t be a game of throne or tug of war situation. Cool boiling emotions by looking at challenges and fact-based solutions. Facts very often prove to be enthralling and resourceful during negotiation. Rather than engage in debates that center on opinion, enter negotiations armed with expert analysis and facts. Present your market numbers at the beginning of the negotiation and keep them at the center of your discussion.

Then, listen to the numbers presented by the other negotiator. You can then begin to work toward a number suitable to each side, based on facts.

 

Make Them Think Saying Yes Was Their Idea
No one likes to be coerced into doing something. That’s why smart negotiators often subtly encourage the other party to think they’re in control. A great way to do this is to offer them a quick out.
In fact, research has shown that using affirming language like “You’ll probably refuse, but…” lead to an increase in compliance.

 

Learn the Rudiments of Persuasion, it’s an art.
Here are the basics:

• Reciprocity: People feel obliged to give if we have been given something.
• Scarcity: Antiques, artworks and trophy properties are all examples of scarcity persuading people to act.
• Authority: We are more likely to comply with a request if it is coming from a perceived authority or expert in the field. This is why your doctor has degrees on her wall, and why certifications and designations are so helpful.
• Consistency: People tend to gravitate toward and feel more comfortable in situations that are consistent over time.
• Liking: Everyone likes people who are similar to themselves, and studies have shown that in group preference is positively correlated with persuasion.
• Consensus: If you have a reputation as a great agent to work with, more agents will want to work with you, and as a result, you’ll gain leverage in negotiations.

 

Anchoring gives you closure, use this to find the other parties lowest ebb
The “low anchor” is the most effective negotiation strategy. It is when you intentionally give a low-ball offer or range to a prospect to change their perception of the financial aspects of the deal. Typically, this will get a prospect to go right to their bottom line, or at least close.

Negotiations can go ‘topsy-turvy’. But if you go in prepared, armed from the vantage point of value offering and reception with these skills, you’re more than likely to walk out that door smiling.