Then I will go into the specifics.
Here are my common ground rules for effective negotiating;
1. You have already done all the hard work by sourcing the lead and probing the seller. This is the fun part! Relax, and enjoy yourself.
2. Keep calm – it's just a game.
3. Keep quiet – good negotiators only speak when they need to.
4. Devise a strategy (before you begin to negotiate) and stick to it.
5. Listen to and memorise everything the seller says. Take notes if you need to - you never know which piece of information may turn out to be relevant later.
6. Do not disclose anything about yourself which may turn out to be detrimental later (obvious I know but worth mentioning nonetheless).
7. Your power as a superior negotiator is silence. Any arrogant or smug behaviour will put the seller on the defensive and you can wave goodbye to your win/win deal.
8. Never help the seller accurately predict how you will react to their actions - the best negotiators do not act predictably.
9. Avoid doing anything that may make you seem aggressive because this will put the seller on the defensive. If this happens, you will experience great difficulty in getting the information you need and closing the deal.
Examples of aggressive behaviour:
- Too much direct eye contact.
- Talking about your needs and not the sellers.
- Not caring about the sellers needs.
- Trying to force the seller to do something even though he or she has already clearly stated that your terms are unacceptable.
We find it much harder to say no to a friend than we do to say no to a stranger
Therefore you MUST create the least competitively charged atmosphere as possible.
I use a number of negotiation tactics to significantly increase my chances of achieving a win/win outcome. I have covered them briefly in this guide...
For further information on how to build a solid property foundation, check out...
Good guy bad guy
This is my favourite technique.
I can't remember being involved in a property deal where I didn't employ this technique – it's so simple yet effective.
In every property deal, the sticking point will always occur when the offer price is mentioned – especially if it's low!
You need to be able to make the offer without offending the seller or causing the negotiations to break down so use a partner.
It doesn't matter who it is just somebody who becomes vital to the deal but isn't directly involved.
This person becomes the 'bad guy' and you become the 'good guy' (or girl as the case my be).
Here is the flinch technique.
When the seller reveals his/her asking price (it doesn't matter whether it is lower or higher than your expectations) you must visually react because I can assure you the seller will be watching closely for your reaction.
Put things in writing
The best way to convince a seller is to present evidence in writing.
There is a big difference between simply stating a similar home around the corner is selling for £70,000 and presenting some kind of written factual evidence to the seller – like an agents particulars.
A good negotiator will always try to convince the seller by presenting his or her reasons for the low offer as written evidence.
The reason is psychological more than anything else, since we are conditioned to add far more credibility to written evidence and facts.
Reliable information is absolutely critical to creating the win/win outcome. You will have trouble making a seller feel good if you do not even know what he wants!
The key to creating the win-win situation that I have emphasised throughout this mini course is finding out what the seller really wants, needs and intends to do before AND after the sale.
This will hinge upon your ability to gather relevant and factual information on the seller and his property.
The walk away tactic
The walk away tactic involves your ability to convincingly walk away from the deal to convince the seller into thinking that you are not interested in continuing the negotiations.
Always ask for more than you need
By always asking for more than you need, you will give yourself a cushion to allow you to give concessions to the seller to make him or her feel good about giving in to you.
In my course, "Success! Through Property" I explain in detail the importance of emotions when negotiating with a seller.
Never be afraid to ask for what you want
"If you don't ask you don't get!"
Always mention alternative properties you are interested in buying. This tactic is easily combined with the other tactics to give you the ultimate edge when negotiating with sellers.
Always include a time limit when you offer on a property.
Give the seller what he or she REALLY wants
Probe well, and figure out what the seller REALLY wants. Gear your negotiations towards giving the seller what she actually needs
For more of Parmdeeps proven and time tested negotiation stratefgies check out his bestselling property course Success Through Property
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