Today’s success tip comes from Phil Jones.
Phil started investing in property with just $25,000 and has since accumulated a multi-million dollar property portfolio. Phil is now a highly respected business and property speaker and is the author of more than six books.
What do people need to know about negotiating in order to achieve their desired outcomes?
Negotiations are about people and their needs. At the end of the day, everyone wants to feel as though they have negotiated well and created a deal that they feel good about. The process of give and take that occurs during successful negotiations is the way to leave both sides feeling satisfied and with a sense that the deal was fair. To achieve a desirable outcome, there are 13 things that you need to know.
1. Persuade first - before you begin negotiation, try to persuade the other party to agree with your suggestion first. If that does not work, let the negotiations begin!
2. Be prepared - if negotiations do not satisfy your outcomes, be prepared to walk away from the table (if you aren’t prepared for this, you will fail to negotiate well).
3. Five important factors - negotiations involve information, power/leverage, time, strategies, tactics and people. If you think that the other party has more of these, just remember, they are probably thinking the same thing about you!
4. People are not property - real estate negotiations are more about the people involved than the property being discussed. Of course, the property will have to meet your needs as a suitable dwelling or investment, but it is the people involved who will make the deal happen - or not!
5. Every man for himself - the people involved in purchasing real estate, from your own real estate agent to the seller, are not 100% on your side; they have their own interests and goals that may not exactly align with yours. For example, a real estate agent might suggest that you sell for a bit less in order to guarantee their commission. My advice is to always follow your instincts and verify everything.
6. Four basic steps - there are four basic steps that need to be covered in every negotiation:
* Research the market, the property and the people who you will be negotiating with. Also prepare the strategies that you will use during the negotiations.
* Exchange information with the other party. By knowing what each other’s needs are you can create a win-win outcome. If they don’t know your real needs, they can’t help you achieve what you want and vice versa.
* Make offers and counter-offers in the formal part of the negotiations (this is when tactics and strategies are used and concessions are traded).
* Sign on the dotted line when both you and the other party are satisfied with the outcomes.
7. Everything’s negotiable - in real estate, you can negotiate anything (which includes prices and terms). While you will want to get the best deal you can, you will find that it is almost always necessary to give in one area in order to gain in another.
8. Don’t take it personally - it is a lot easier (and advantageous) if you treat negotiations as a business or a game. If you take it personally you will make bad decisions (and end up with high blood pressure!).
9. You are not enemies - the person with whom you are negotiating is not your enemy. It is a situation where you are working together to find a mutually satisfactory solution. Generally, you will both want the same thing - a successful sale.
10. Win-win - this is the ultimate outcome for a negotiation - both parties win! You will ultimately be a much more successful negotiator if you can make the people you are negotiating with feel as though they’ve won (at the same time, of course, as being able to make the deal work successfully for you).
11. Develop your own style - use a style of negotiating that feels comfortable and comes naturally to you. You may need to experiment at first to find what works for you, but after a while you will develop a style and method that will make both you and the person you are negotiating with feel at ease.
12. The same but different - although negotiations involve the same basic steps, remember that every negotiation will be different - you are dealing with different properties and different people who have different needs.
13. I think I can - if the people you are negotiating with do not think an agreement is achievable, then your task is almost impossible. Both parties need to think that a deal can be made for a negotiation to be successful. That said, if both parties believe a deal is possible, even though you are not in agreement about how to achieve that, you still have a high chance of negotiating a satisfactory outcome.
That’s it for this week. If you want more great advice on how to live a productive and successful life, be sure to check again next week.
Until then,
Allan Poole
