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Negotiations

Section 3 - Chapter 10 (continuation)

9. Rewards

For the power of rewards to work, you have to have something to reward the other side with. Appreciation is sometimes enough to help. Other rewards can be almost anything. "I'll buy lunch if we can settle this issue by noon," might help. Giving away things you didn't need anyhow can work too. I've seen home buyers ask for sentimental personal items in their offer, just to have easy concessions to reward the seller with during negotiations.

10. Punishments

Punishments can include a disapproving glance or more substantial things, like subtle threats of withdrawal when they try to get too much. Threats of punishment work better than actual punishments, and it's your call as to when they are appropriate. They should be subtle, non-personal, and used in conjunction with rewards. "I know you want to close on the 13th, but the contract gives us until the 30th, and I may need that time. Maybe we can get this closed by the 13th if you could help with the closing costs as we had originally agreed."

11. Persistence

Consider children, who think less about the effort of asking ten times than they do about the possibility of a "yes" on the next try. Unlike how children do it though, you should continually change your approach. A new way of asking can often get you that "yes."

12. Persuasion

Learn to persuade and you'll be a better negotiator. Obvious, perhaps, but are doing it?. For example, if the seller says "I see" ten times, do you notice it and use it by saying,"Can you see what I'm saying?" Learn at least a few good persuasion techniques and you can negotiate a better deal on your next home. This is especially true for those of us that don't have much "natural" talent in persuasion.

13. Attitude

Attitude is contagious, so make it a positive one. It also effects your own thought processes. If you enter into a negotiation with the attitude that you'll find a way to get what you want, your mind will work on more than one level to find ways to make that happen.

Try to understand and influence the attitudes of the seller. If she isn't hopeful, ask her to tell you what a good resolution would be, and what it would do for her. The process of describing a good outcome and it's benefits can turn around the attitude of even the gloomiest people. Get excited along with them, and say something like, "Well I think we can make that happen."

14. Knowing Their Needs

If you really understand what the seller needs, and you can give it to him, you have power. Get this information as early in the process as possible. Build rapport and commitments on minor points first, then let him slowly get what he really needs as you get what you need. He might need a fast sale more than the highest price. If you mostly want a lower price, and have financing already arranged for a quick close, you can help him and help yourself.

15. Investment

Time, effort, money and reputation are some of the things that are invested in a negotiation. Nobody likes to lose what they invest, and using that fact gives you power. For example, if you are hoping to get a major price reduction, spend an hour or two talking to the seller. Only then should you make your low offer. He's less likely to walk away than if you made the offer five minutes after you got there.

The sellers decide what they want to invest into a negotiation, whether it is time, trouble, money, or whatever. You decide when to reveal your needs, demands or requests. If you can, wait until they have made some investment.

16. Not Caring

She (or he) who cares least has the most power in a negotiation. I was once selling a piece of land, and the buyer drove a long way to meet with me. One of the first things she said was, "The price seems kind of high. Why are you asking so much?" I honestly answered, "I guess because it's such a beautiful property that I really don't care if I sell it or not." She paid full price.

The appearance of not being too concerned or anxious will help a lot. The most power, however, is in truly not needing to worry about the deal too much. To that end, try to line up other options beforehand. You may even want to mention these options during the negotiations. "You have a beautiful home, but the other three we are looking at are selling for a little less, so I'm not sure..."

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