Negotiating is an art that not many have the guts to master. It takes a certain level of confidence to be able to confront and persuade in such a way that you get what you set out to get. In this portion of an interview between Dale Beaumont and Phil Jones find some great negotiating tips to help you achieve your desired outcome.
Phil started investing in property with just $25,000 and has since accumulated a multi-million dollar property porfolio. Phil is now a highly respected business and property speaker and is the author of more than six books.
What do people need to know about negotiating in order to achieve their desired outcomes?
Negotiations are about people and their needs. At the end of the day, everyone wants to feel as though they have negotiated well and created a deal that they feel good about. The process of give and take that occurs during successful negotiations is the way to leave both sides feeling satisfied and with a sense that the deal was fair. To achieve a desirable outcome, there are 13 things that you need to know.
- Persuade first – before you begin negotiation, try to persuade the other party to agree with your suggestion first. If that does not work, let the negotiations begin!
- Be prepared – if negotiations do not satisfy your outcomes, be prepared to walk away from the table (if you aren’t prepared for this, you will fail to negotiate well).
- Five important factors – negotiations involve information, power/leverage, time, strategies, tactics and people. If you think that the other party has more of these, just remember, they are probably thinking the same thing about you!
- People are not property – real estate negotiations are more about the people involved than the property being discussed. Of course, the property will have to meet your needs as a suitable dwelling or investment, but it is the people involved who will make the deal happen – or not!
- Every man for himself – the people involved in purchasing real estate, from your own real estate agent to the seller, are not 100% on your side; they have their own interests and goals that may not exactly align with yours. For example, a real estate agent might suggest that you sell for a bit less in order to guarantee their commission. My advice is to always follow your instincts and verify everything.
- Four basic steps – there are four basic steps that need to be covered in every negotiation:
- Research the market, the property and the people who you will be negotiating with. Also prepare the strategies that you will use during the negotiations.
- Exchange information with the other party. By knowing what each other’s needs are you can create a win-win outcome. If they don’t know your real needs, they can’t help you achieve what you want and vice versa.
- Make offers and counter-offers in the formal part of the negotiations (this is when tactics and strategies are used and concessions are traded).
- Sign on the dotted line when both you and the other party are satisfied with the outcomes.
For more of this interview and negotiating tips check out “Secrets of Entrepreneurs Under 40 Exposed!”