3 little secrets for successfully negotiating your next property deal
Do you avoid conflict at all costs?
Or do you like to play hard ball so that winner takes all?
Have you ever wondered how it is possible for both parties in a negotiation to feel like they have won?
This subject is close to my heart as I’m currently searching for my next property renovation. I know what I want but it’s important to me that the other party feels they have achieved what they want too.
If we want to be successful in property (and in life) we need to become masters at win-win negotiations. Outlined below are some simple strategies to provide the confidence to stand your ground, maintain your integrity and create a win-win situation in your next property deal.
1. Be clear about what you want
It’s impossible to stand your ground in a serious negotiation if you’re not really sure what outcome you desire. Ask yourself the following questions to gain clarity and strengthen your position.
- Why do I want this particular property?
- Is this property an essential step towards my longer term goals?
- What is my bottom line with regard to price and settlement terms?
When you are crystal clear about what this property will provide you, it is so much easier to know exactly what you need from the negotiation.
I recently spent hours doing the numbers on a great renovation property with the added bonus of a granny flat. The property was in a lovely beach-side location with opportunities for future capital growth. By writing answers to the questions above however, it became clear that this property did not suit my longer term goals. I was then free to negotiate the next opportunity with a clear picture of what I wanted.
2. Have empathy
Property millionaire Dymphna Boholt explains how having empathy for the other party can work in a successful negotiation:-
“It doesn’t mean you’ve got to agree with the way they see things, or how they want things to be.
It just means you have a better understanding of where they’re coming from.
Once you have that, it’s easier to see how what they want and what you want might fit together.”
Find out as much as you can about the seller’s situation.
- Are they an investor just looking to take profit and move on to something else?
- Is the bank calling in loans and they need to sell quickly?
- Do they just need to free up a small portion of the capital to invest in the family business?
- Would they consider longer settlement times?
The more you know, the more freedom you have to become creative and find solutions that will be good for everyone involved.
3. Be patient
Patience is powerful—more powerful than deadlock or threat. – Dr. Chester L. Karrass
Resist the urge to “make something happen”.
When you have laid your cards on the table and are waiting for a response, be patient. This gives the other party the space to consider that their wants may not reconcile with the reality of what they can get.
Forcing a quick response will crush the opportunity for this realisation to occur.
Now that you understand how to create a win-win negotiation, it’s time to put it into action. So what if you don’t have a property deal that you’re currently negotiating? Try it out anyway.
Do you have a life situation that would benefit from some win-win negotiating? Apply the tips above and see how you go. By successfully negotiating a win-win in an important personal area you will be so much more confident in your next property negotiation.
And make sure you comment below and let us know how you went.