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Win-Win Negotiation – 10 Tips To Close The Property Deal
In order for you to emerge as a winner in property deals, you do not necessarily have to make your opponent a loser. Negotiation skills have long been as an art. Follow these 10 tips to guide you through the obstacles that are stopping deals from happening.
1) Chat like a friend. Engage in small talk and chit chat with the seller to learn more about him as a person. You might learn that you have common interests and went to the same school. Leave serious negotiations on the negotiation table. Other than that, don’t bring up discussions on price unless he is the one bringing it up.
2) Empathize. Try to look at things from the seller’s perspective. When you are able to do that, you will be able to find out what are the terms that are non-negotiable and what can be compromised. A deep need during negotiations is the need to not look like a pushover in front of family members and friends. Acknowledge this need and address it.
3) Know when to stop. In Sun Tze’s art of war, it mentioned that you should never corner your opponent with no way of escape. This is when the opponent will rise to the occasion and retaliate forcefully. Learn to sense when the seller is on the edge and step back. If you keep pushing, the seller may walk away from the deal completely.
4) Listen. Instead of hammering away on what terms you want, listen to the seller’s perspective and concerns. Read between the lines on what they really want. Sometimes sellers will not state clearly on what they want being afraid of looking too greedy. Sieve out the noise to see what exactly they mean during conversations. Communication is key to every negotiation. The party that is able to read the other better will often come out happiest.
5) Avoid confrontations language. The way you phrase questions can have a deep impact on other people’s emotions. Word can arouse tension, frustration and anger. It also bring up happy emotions. For example, when addressing dirty walls a comment like “Why didn’t you maintain the walls?” can arouse anger. A better way to phrase it is “”What happened to the walls?”.
6) Facts. Use fact and figures that you have gathered from reliable sources when making comparison. Simply saying that other sellers in the area are selling at 50% less is an unfounded comment. Be able to back up your comparison data by referencing your source. You could cite reports by newspapers or official data from government agencies or market regulators.
7) Dismissive behaviour. Do not straight out dismiss suggestions from the seller. This gives the impression that you are not interested in seeking a win-win situation and only concerned with what you want. Unless the seller is desperate to let go, you will be the last buyer he will consider.
8) It is not all about price. Getting closer to your offer price could boost your ego and likewise to the seller. If you can identify that price is most important to the seller, sometimes you can get a better deal by going with the seller’s price but getting him to make more concessions.
9) Be logical. You could have calculated that the property is worth $1m with the data that you have collated. But another bidder values it way above your valuation because he really likes the view from the apartment. Property investments have to make sense to you. Don’t get into a bidding war in an attempt not to lose out to someone else. The property is only worth how much you value it.
10) Make concessions slowly. Giving away concessions immediately when after the seller request for it is a green light for him to ask for more. Even when a concessions means nothing to you, delay your agreement to concede. Always try to get something in return no matter how small.
The key to effective negotiation is by being able to quickly read the seller’s mind. Find out what are his objectives and goals so that you can work out a proposal that will be acceptable while you still get what you want. Ask questions tactfully and get to know the seller as a person in stead of an opponent.