• What is BATNA? (hint — If you’re in real estate you want to know this term)

    BATNA. You’ve probably heard the concept before but maybe not the acronym. It stands for: Best Alternative To Negotiated Agreement So basically, it is your walkaway power. If your BATNA is better than the BATNA of the other side that you are negotiating with, then YOU have the power in the negotiation. One example of this in real estate negotiations is: A Buyer’s agent reaches out to a seller through [...]

  • Countering the Low Ball Offer

    When an aggressive low ball offer comes through on a real estate listing you represent, often the first reaction is for you and/or your seller to feel insulted. Recognize that the low ball offer is typically just a tactic to see how the seller reacts.  The listing agent should pre-position the seller to expect low ball offers and not react emotionally, which is sometimes easier said than done. Defend Your [...]

  • Persuade with CLASS

    “I will only pay you a X% commission” the seller said emphatically. Now what was that technique I just learned?  Oh yeah – persuade with CLASS! C larify L ikeable A cknowledge S elf-Interest S olution “Ms. Seller, I’m curious - how did you arrive at 5%?”  Even though I felt defensive and mildly upset, I said this in a comfortable conversational tone.  I needed to clarify the real reason [...]

  • Identifying Value in a Negotiation

    All negotiations involve multiple “value” elements.  The key to success is to first identify the value elements on each side and then “trade” value elements to reach agreement. Easier said than done!  Why?  Because most negotiators don’t spend enough time identifying and truly understanding the value elements.  The trading part is easy! A home buyer and seller were negotiating and after lowering the price somewhat, the seller finally said “I [...]

  • Negotiation Tactics/Approaches NOT (Typically!) Used by Skilled Negotiators

    Negotiation Tactics/Approaches NOT (Typically!) Used by Skilled Negotiators “I won’t let my client agree to that.” (Who is the real decision maker?) “Because.” (No Logic or Rationale. Giving good reasons increases your chances of persuading effectively.) “I don’t care about your client.” (Skilled negotiators know they have to adequately satisfy the other side to reach agreement.) Sloppy Offers/Counteroffers (as in incomplete documents which creates doubt on the other side) Communicating [...]

  • What an AWESOME Feeling!

    Getting a call from someone in your sphere of influence about a listing opportunity really gets the adrenaline pumping! An alumni from Bill’s college (he had graduated 22 years earlier than Bill) had called saying he was interviewing agents to list his house. The seller had agents booked at 10 AM and 11 AM this coming Saturday, and had asked Bill if he wanted a 9 AM or a 12 [...]

  • Using the Flinch Negotiation Tactic

    In professional real estate negotiation, the flinch negotiation tactic is a physical reaction to communicate shock, dismay or disbelief at what you just heard. Sometimes it is involuntary; your mouth falls open. But often this negotiation technique is more about communicating a message of exasperation. The flinch negotiation tactic can be fun, with a wide array of responses from involuntary to comical. Besides the mouth falling open various widths, there [...]

  • The Personal Obligation Negotiation Tactic

    The personal obligation negotiation tactic can be a persuasive tool in professional real estate negotiations.  When used correctly, it has the effect of making the opposing party feel as though they “owe” you something. Most people feel an innate sense of obligation to return a favor or kindness that was done for them.  In real estate negotiations this can work in your favor.  If you have made a concession on [...]

  • The Ask Why Negotiation Tactic

    In professional real estate negotiations, the ask why negotiation tactic is the bedrock of good negotiation skills. It helps identify areas of real issue, puts the spotlight on the specific problem, and lets both sides work towards a resolution. It can be – perhaps should be – used in almost all negotiation settings. Most successful negotiations have less to do with how vehemently you argue than with how well you [...]

  • The Recess / Walk-Out Negotiation Tactic

    In professional real estate negotiations, the recess or walk out negotiation tactic is a threat to break off the negotiations and imply an end to all discussions. When the walk-out negotiation tactic is employed, one party leaves the room in protest of the terms or concessions being discussed. The insinuation is that the point being debated is so off target, so offensive, that it will not be discussed now or [...]