Friday, January 18, 2013

TOP 10 negotiations techniques


There are probably as many books about negotiations techniques, as there are stars in the sky. Thought many of them have common core, every now and then I find something new or maybe not so new, but not used and forgotten. This week I came across an article like that and decided to create my List of TOP 10 negotiations techniques:
  1. First and foremost, whoever starts is always in the less favorable position. In the Real Estate business seller has to make first move - name listing price. Set it too high and no one will be even looking at your property, set it too low and you risk not to sell for as much as you could, set it even lower and you’ll have bidding war without any clue how it will end up. This is exactly why one of the first most important qualities of listing agent is ability to recommend price that is just right.
  2. Talk less. The one, who listens more, gathers more information and information is everything. By listening more you also give out less yourself. 
  3. Start with asking questions other side wants to talk about, not necessary related to the deal. In big conversations people often mention bits and pieces that later can be linked to important facts. But more often they (myself including unfortunately) talk without realizing what they talk about.
  4. Also on the conversation piece, flatter other side. This one is obvious. Any one is more likely to talk openly (i.e. share more information) with some one who is nice. 
  5. Take an effective even theatrical pause. Many feel very uncomfortable when conversation suddenly stops and feel obligated to continue talking about anything at all, often they talk about things they shouldn’t. This is also very effective when your opponent announces their offer and you just say nothing in response. For some reason human beings first think that they’ve done something wrong and try to correct it. For example, if your opponent named a price, after a pause they will try to make it more attractive. Do this even when you are happy with what you hear and you will get even better results. And if you don’t – you never said “no”
  6. Play dumb. This is such a powerful tool in so many ways! First of all no one likes to be outsmarted. We like to deal with less experience opponents. Sometime we will even feel so bad about taking advantage of this silly guy that we will give them more than normally would. 
  7. By showing limited knowledge you get permission to ask questions others don’t, sparking conversation that sometimes leads to very interesting facts.
  8.  Also pretended lack of experience gives you excuse to use my next favorite one - limited authority.  “I hope my wife likes this kitchen” or “I’ll have to check with my partner/investor” and other excuses that give you additional time to consider everything, as well as excuse to pull out if needed.
  9. Ask for everything, especially for things you don’t want. When there will b`e time to trade or give-up something you have plenty to choose from. “I guess I don’t need snow blower if I can get my price”
  10. Let them say no. If you don't like what you are offered, still name what you can go for, even if it's far off. Once in a blue moon other side will surprise you. And if they don't, you were ready to walk away any way.

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