Let's talk about Negotiation

"When negotiating a property deal Knowledge is Power!"


Negotiation

Negotiation is an art, not a science. The art of negotiation is not win-at-all-costs. It is about negotiating a contract where the seller can feel like they are winning in the deal. Remember if the seller has taken the trouble to list their property then they are motivated to sell (some more than others).

One of the keys to property negotiation is not becoming emotional about the transaction. It is only when you are able to walk away from a deal that you truly begin to negotiate, otherwise all you are doing is haggling over the list price.

We have a list of 19 questions we ask every agent about each property, which researches the seller’s position and also acts to reduce price expectation. Some examples of these are:

1. How long has the property been on the market?
2. Why are they selling?
3. Who came up with the list price? How was that price reached?

The fatal traps of negotiation

At Morpheus Property we have experienced many different negotiation styles, techniques and situations. We would like to share some of the pitfalls of negotiation.

1. Poor or no planning - This has to be the biggest failing of many negotiators and the major reason for not achieving the best outcome. Take time to develop a plan of attack.

2. Don’t talk too much - One of the overlooked talents in negotiation is the ability to “shut-up”. If you remain calm and listen more, you will be amazed at what you will learn and achieve.

3. Negotiating verbally - A written offer shows you mean business. It will also give the sales agent better ammunition to convince the seller that this is your best offer. Always put a sunset clause on any written offer. Making the offer for a limited time will encourage the need for action.

4. Not following your gut instinct - This doesn’t mean following the first reaction that comes to your mind. However you do need to develop a gut instinct for the situation. Gather as much data and information about a property deal and then let it have time to ferment. Listen to your gut instinct but only after you have told your gut all it needs to know.

5. Take no prisoners approach - Coming in hard and fast will rarely deliver the “best deal”. Take your time and build rapport. Find out as much as you can about the seller and the property. Steady as she goes will win the day!

6. Don’t aim too LOW - Be careful what you ask for, you might just get it. Fortune favours the brave and much of negotiation is having the guts to ask for something.

Yours in property
The Morpheus Guy's