Negotiating is part of our lives and each one of us has at some point negotiated for one thing or the other. The center point of any negotiation is to try and get a deal for yourself without making the other person worse off. It is neither a battle nor a contest but rather a simple strategy that ensures your interests are taken care of without giving too much.
Professionally, the art of negotiation can take your entire lifetime to perfect. However, there are a few negotiation strategies that can help put you ahead even when dealing with unmotivated real estate buyers.
Allow the other Party to Speak First
Letting the buyer speak first gives you the opportunity to define a midpoint. For instance, if he offers $10 million, you can take it to $20 million and finally settle at $ 15 million depending on the value of property at stake. It is human nature to resist giving more for less so people tend to decrease or increase their offers depending on your starting point. The other advantage of allowing the buyer to give his offer first is because there is a possibility his first offer may be much better than the first offer you would have made.
Be a Good Listener
Keeping your mouth shut during negotiations is one of the strongest maneuvers but also a difficult one. Silence brings uncertainty to the buyer and this can make it easy for them to make a concession to break the silence. The next time you are at the negotiating table, wait for the other party to make their offer and remain silent for about 10 to 20 seconds. You will be shocked they may interpret your silence as disappointment or anger prompting them to revise their offer.
Harness the Power of Information
In almost 95% of all negotiations, the party with the most information walks away with the best possible outcome. During real estate negotiations, you should not just have information on the subject of the negotiation, but also try as much as possible to understand the party you are negotiating with especially their motives. Contrary to what many people believe, negotiation is not just about money, but solving a problem.
Always Try to Get the Last Concession
In simple terms, a concession is what the other party is willing to give in a negotiation. It could be better terms, a price drop, or anything they put on the table. The secret to negotiating massive deals like those in the real estate is to ensure you make the other party do what you want without them realizing it. By asking and getting the final concession, the buyer will realize every time he asks for something, there is another thing that he will have to part with in return. This will make him shy away.
Do not fear friction because it is necessary in negotiations. Be wary of negotiations that end smoothly and quickly without a back and forth; someone may be getting the wrong deal.