Are good negotiators born or do they learn the skill through trial and error? The truth is that the best deal makers are born with some talent but they learn the best tactics in the School of Hard Knocks. The valuable lessons are taught to you by masters who grind you like a 5 year old with a power sander. Here are 5 tips to make every negotiation go in your favor;
1. Always know what is important to the other party. While you are negotiating on price, the seller may need a quick close. Find out what the other party needs so you can negotiate something attractive to them while getting what you want.
2. Don’t treat it like a sport. Negotiating a real estate deal involves lots of emotions. Don’t feel like you need to win every part of the negotiation to have a deal in your favor. Give where you can to let the other party save face and feel comfortable moving forward. If you get most of what you want then let the other side have something small so that they feel good about giving so much.
3. Know when you have a win. If you get 90% of what you want you have won. The best negotiators know when to say YES. The enemy of good is perfect. There are no perfect deals. Make sure you realize when you need to stop negotiating and accept the win.
4. Don’t bluff unless you are ready to do what you threaten. Getting your bluff called is the quickest way to lose all of your leverage. If you say “That’s my top price”, when it isn’t, they may say “Good luck and sayonara”. Then you are going to give a lot more once you re-engage.
5. Sometimes silence is the loudest thing you can offer. If things aren’t going your way don’t respond for a bit. After a few hours they will be wondering what is going on. The more they sweat the more leverage you get.
Great negotiators come in all shapes and sizes but at the end of the day getting results comes from using tried and true strategies to get what they want. You can use these tips in your everyday life. You’d be surprised how helpful they can be, even when you aren’t working a real estate deal.
Steve Mallett is the Host of the Mallett and Michelle on Dripping Springs Podcast and the owner of the Mallett Integrity Team Real Estate company. He’s been an award winning Broker since 2004. Call him anytime at 512-829-2062 for great real estate advice and counsel.