The core of any business transaction is the negotiation dialogue, which defines the deal structure. Most of the negotiation strategies seem to be a general conversation, however, in the emotion of the moment people ignore their basic instincts. It takes self-confidence, homework, and unprecedented discipline to secure the best deal under any circumstances. Here are four techniques for a successful real estate negotiation:
1. The foremost task is to do the homework - study about the people you are negotiating with, the more information you have the stronger you are to make an accurate decision. It is important to decipher the true motivation of other party and identify the decider.
2. Decide your bottom line, an important strategy is to identify and walk away from the table when the deal is not right for you. Your bottom line acts as a reference point for rationality when you are experiencing a turmoil of emotions during the process. A successful negotiation results in favourable terms and not a mere agreement.
3. Identify alternatives – A key tactic used in real estate negotiations is to convince the other party that you have alternatives. Power in a negotiation process is always with the person with more options.
4. Create a compelling narrative – The narrative should be a combination of solid math and storytelling. Negotiation is about numbers that make sense and simultaneously winning the hearts of your counterparts. People respond positively to compromises that seem fair and based on facts.
It is important to create value in the deal, at the end each party should feel good. A smart negotiator makes the other party believe that they managed some good concessions out of you. Since every negotiation is unique to the market, property, and negotiating counterparts, it may work perfectly in one situation but fail in another. Hence, it is advisable to always be light on your feet, attentive to changing scenarios and keep strategizing as the negotiation dialogue continues.