The art of negotiating has much to do with interpersonal skills and personal aura. The greater the power of persuasion the better a negotiator you are. You may have an enormous amount of knowledge about your business but may not be able to extract a ‘yes’ from the person with whom you are negotiating. A successful negotiator must possess qualities that give him or her a clear choice over others. Look at some of the secrets of successful real estate negotiating:
1. Plan your strategy beforehand: Plan your strategy in advance and negotiate based on desired outcomes. There is no substitute for good homework. If you don’t know where you are going, how will you know how to get there. It gives you tremendous confidence and enables you to conduct yourself well with professional panache throughout the negotiation.
2. Sound persuasive but not presumptuous: While negotiating, use all possible arguments in support of your claim, but don’t play the game of one-upmanship. After all, you are out to convince your client of the merits of the offer and not to beat them in a game. Never ignore the modesty that is characteristic of a good salesman.
3. Explain but don’t exaggerate: Sound credible and realistic in your assertions and negotiations. Overstating facts and inflating figures may sound hollow and will eventually prove to be disadvantageous and compromise your credibility. If you can solicit an endorsement or a testimony from a public personality or an institution, it would certainly add to your credibility. Also, back up your claims and arguments with documentation.
4. Be assertive but not aggressive: Most negotiators ignore rules of professional etiquette and decency. Assert what you have to offer and present facts and figures with humility. Of course, you have to pursue the deal pro-actively, but allow a brief period of silence to help change your client’s reluctance into successful deal.
5. Give an alternative rather than taking a “No”: Being armed with a couple of offers gives you better leverage. You may be faced with a situation where your discussion is not reaching any logical conclusion. On such occasions use a new avenue for negotiation. Provide other options for your client to choose from. The wider the spectrum of variables in terms of price, terms, and deliverables, the longer is your rope for maneuvering. For instance, if the price of the house is becoming a hitch, throw in the upholstery and fittings, or offer to give a face-lift to the garden etc.
6. Respond empathetically: Don’t be a robot. Listen to your client keenly and respond empathetically. Show your humane and lively qualities. Appreciate their views and, where necessary, contradict them politely. Your courteous behavior may win them over quicker than the cleverest of tactics.
7. Emphasize the uniqueness and rarity of your offer: Use good communicative skills to negotiate. Few people would like to settle for something that is only run of the mill. Convince your client that your offer is unique, possibly a once in a lifetime opportunity.
8. Delay rather than give up: If your negotiation has reached a deadlock with apparently no hope of any further progress, delay rather than close the deal outright. Seek yet another appointment with your client in the near future and pursue it with better-prepared strategy and vigor. Never give up if you can still see that a deal is possible.
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[tags]real estate investing, real estate investment, real estate strategies, negotiating, negotiation[/tags]
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