Negotiation

Literally from the time we start communicating we are negotiating. If you have children, you know exactly what I mean. You can never

say no to a child just once because he will ask you for something over and over. Sometimes they find different ways to ask for the

same thing. They do not take “no” for an answer. I know with my own children, even though I am on to it, once in a while

it works for them. School age children negotiate with their teachers over their assignments, homework, etc. As adults we

negotiate with our friends, co-workers, bosses, and spouses constantly everyday. Who is going to do this or that? Can

I do this or that? We are constantly negotiating.

Negotiation is the art of focusing on gaining the favor of people from whom we want things. It is the power of influencing someone

to make a specific decision. It is as simple as that. You know you have negotiated well when you get a good deal for yourself and the

other party is smiling because they feel they also got a good deal. It is a win / win scenario. Negotiation is not taking

advantage of someone or taking them for all they have. That is just being a bully.

I have seen situations where people have pushed an owner in foreclosure so far, making the deal sweeter for themselves and

negotiating themselves right out of a deal. I can not tell you specifically how to gauge when you are asking too much.

That is something you learn through experience and feel out in each individual deal. Just know that you need to strive to leave

the other party with the ability to make a fresh start. You have to leave them with some dignity. Remember – win /win!

Negotiating Tips / Building Rapport

 Be friendly! From the very beginning you are building rapport. Gather facts about the seller’s circumstances that you will use

in structuring a deal with him. In the beginning one of the first questions you will be asking is, “What have you already been

doing to solve your problem? What is it that you would like to have happen?” They will talk about keeping the home or about

getting rid of it. This will give you a direction to work towards. Once you have sufficient facts you will know if you can help them

accomplish their desires. If not, then you will play the role of counselor in helping them to face the reality of their situation

and guide them towards a decision.

The First Offer

 Your first offer should always be lower than what you really would consider paying for the property. You could get lucky and get a

better price than you were expecting or you are allowing yourself room to negotiate up. The ideal situation is if you can get the

seller to first tell you what he is willing to take. This happens with rapport building. You really do not have any idea what number

the seller is thinking. Sometimes it is a number lower than your number. When possible let the seller tell you what he is thinking.

It might be just $1,000 to help him with moving expenses while you are thinking possibly of giving him $5,000 for his equity. Let the

seller give the number first!

Never appear anxious. Let sellers know you have two other deals you are also considering, but you are interested in their property

however, if it does not work out, you will buy one of the other properties you are currently looking at.

When talking in general and building rapport, you can try some feeler questions like, “If someone were able to, or if someone offered you,

 would you consider it?” Using the “if” word is the key word here. It does not create any obligation and the answer gives you a good

indication what the seller is thinking. Always maintain your walk-away power. You cannot allow yourself to get emotionally

involved with the property. Do not fall in love with it. If you do, you are likely to pay more than you need to, and you may buy

yourself right into no profit. I have seen it happen too often. When it does not seem that you are going to be able to make it

happen at a reasonable profit for your time and investment, say, “Well, it looks like we will not be able to do business after

all, Mr. Seller; good luck to you.” Then get up and walk out. Start working on your next deal. When the seller sees how serious

you are, he may not let you get out the door.

October 27, 2017

0 responses on "Negotiation"

Leave a Message

Your email address will not be published.

About Interowl

InterOwl.com is a rapidly expanding online global learning community. We are committed to developing and publishing high-quality online education resources. We are open to working with partners that want to bring their quality course materials to the masses.

 

Created by InterOwl LMS


InterOwl LMS partners with organizations of all sizes to to deploy their training online with customized Learning Management Systems. Bring your curriculum online »

Newsletter Sign Up

top
©2019 InterOwl.com  All Rights Reserved