Here’s some interesting information that I received from Chris McLaughlin of Keller Williams in Tampa regarding the “art” of negotiations:
Negotiation 101
In college one of the most popular courses among those entering politics, business or even psychology is negotiation. With good reason since the ability to successfully negotiation is a skill that makes or breaks men and women of all levels of intellect, skill and background. Without strong negotiation skills the best and brightest are likely to find themselves working behind the scenes rather than taking the bull by the horns and forging ahead. Real estate is one area particularly well suited to strong negotiation strategy and fortunately, you don’t need to spend thousands of dollars or countless classroom hours to acquire this art form. Instead, start small with these simple tips:
1. Stay on-point. Speak clearly, slowly and remain calm at all times. Think of negotiation like a poker game; practice to find out your individual “tells” then eliminate them from the table.
2. Clearly define the deliverable. It is important to establish who “owns” what and how each party will benefit from the other persons contributions.
3. Be the FIRST person to give up something. This might sound counter-intuitive but research has confirmed how well it works. By taking a lead role in “giving up” something first, you create an obligation for the other party to reciprocate. Make sure what you give up is meaningful but with the full intent of acquiring something even more meaningful in return.
4. Use the other person’s name and maintain eye contact if you happen to be doing this in person (most short sale negotiating takes place over the phone, of course).
5. Don’t be afraid to use silence strategically. When the other party makes an offer or counter-offer consider it slowly and silently; don’t speak for several seconds even if it is everything you hoped for and more. You never know what their bottom line may be so wait a few seconds to see if they respond further.
6. Once you have a tentative agreement on the table, take time to outline the specifics including time, price, limitations or exclusions. Once again, remain calm and offer something in advance to create an obligation or reciprocation on the part of the other party.
7. Put it into writing then and there. Anyone who has ever bought a car knows the tactic; make them sign something even if it isn’t legally binding. The very act of acknowledging the agreement makes them take ownership and creates a strong motivation for follow-up.
8. Act Fast. Move from the talking stage to the doing and delivery portion of the transaction as soon as possible. When dealing with short sales and real estate in general it isn’t unusual to encounter cold-feet, second guessing or other attractive offers.
See you at the top!
Chris McLaughlin
