Commercial Property Negotiating: The Framework for a Great Deal (Part 3)

You need to keep asking Questions, right until the end.OVER THE past couple of weeks, you’ve quietly worked your way through the first 14 questions … as part of your prep-work for each Negotiation.

And today, you’ll be covering the final 6 key questions — to help ensure your success.

So, here’s what you also need to be asking: ARE YOU …

  1. Remaining Professional?

    You simply can’t afford to lose your temper … and still retain respect, from the other party.

    People can be insulting, and it is all too easy to respond aggressively. But sometimes they’re just doing that to test you, or your patience. So you may simply need to suggest adjourning the negotiations … to give them a chance to regain their composure.

    If it is a genuine outburst on their part, they can cool down. And if it’s merely a ploy … then, they’re going to look rather stupid.

  2. Aware of the Benefits & Consequences?

    You need to try and understand the benefits and consequences for each party in the Negotiation.

    Only then, can you properly decide when (and how) to make any concessions; also when (and how) to stand firm, with your own needs and requests.

  3. Employing the Power of Silence?

    Work on becoming comfortable with silence. Because, most negotiators feel the need to jump in with some comment, whenever there is an awkward pause in proceedings.

    But, whenever the answer to your question will actually commit the other party … say absolutely nothing more. Otherwise, all you’ll get is further conversation.

  4. Avoiding On-the-spot Decisions?

    Never commit on a major point, unless you are quite sure of your answer and you’re on solid ground.

    No matter what the pressure … all you need simply say is: “I may need to sleep on that, I’ll get back to you tomorrow”.

  5. Considering the Telephone?

    By choice, negotiations should commence face-to-face.

    However as things progress, you’ll sometimes find more progress can be made by phone — because it takes out all the emotion, and allows you to simply focus on the rational items, rather than any personal issues.

  6. Documenting the Final Agreement?

    Sadly, too many people leave the negotiating table with only a handshake. A short summary (by way of “heads of agreement”, a confirming letter or an email) is all you need to tie down the deal.

    You need to have some form of documentation at the end, if this is a serious negotiation.

    What you might say is: “Let’s make a few notes on the points we have agreed; for each of our files and just initial it.”

    Without a written agreement, you'll always have arguements.This is vital. Because, it provides a basis for the contract to be prepared. And when the contract arrives, you can confidently say: “That’s not what was agreed.”

    If you both have the same set of notes, it’s easy to verify that the contract has been drawn incorrectly.

    Otherwise, you’ll quickly discover how recollections can often change — between reaching agreement and the formal contract emerging. As a result, you are forced to restart the negotiation again.

Bottom Line: Hopefully, this has helped you to gain a complete “helicopter view” of how each component of a Negotiation ties in with all the others.

And with the framework at your fingertips, you are now better equipped to tackle your next negotiation.

 

Commercial Property Negotiating: The Framework for a Great Deal (Part 2)

More questions you need to ask along the wayLAST WEEK, we made a good start by scoping the first 8 questions you need to keep asking yourself … as part of your prep work for each Negotiation.

So let’s pick up from where we left off — here your next 6 questions. And you’ll recall that before (and during) your negotiations, you need to be asking: ARE YOU … [Read more…]

Commercial Property Negotiating: The Framework for a Great Deal

Asking these Key Questions will help you succeed as a Negotiator.EVERY NEGOTIATION can be very easily broken down into its component parts … once you understand what is really going on.

Over the next few weeks, I’ll be posing 20 questions — which (when taken together) are intended to help you fully grasp everything involved. [Read more…]

Commercial Property: Negotiating
Tips & Strategies to Help You Win

Negotiating for a Commercial property takes certain Skills
YOU KNOW, I’m always intrigued how many investors place little or no importance upon the skills required to put together a top property deal.

They will spend plenty of time researching the market and arranging finance … but will often get emotionally involved, and want to conclude the Negotiating phase as soon as possible. [Read more…]

How 7 Key Negotiating Tactics
Helped Me Win at The Table

THE OTHER DAY, I covered 5 Mistakes that you need to avoid. Below, you’ll now find 7 Winning Tactics you should look to employ.
[Read more…]

Successful Negotiating: 5 Key Mistakes to Avoid, Whenever You Are Negotiating a Deal

DURING a recent Master Class on Negotiating for a group of clients, we covered a number of Dos and Don’ts when it comes to putting a deal together.

Anyway, here are the 5 mistakes you really need to avoid!
[Read more…]

“Hardware Lane warehouse
goes at wholesale price”

67-73 Hardware LaneTHIS IS how The Age (on 9 July) described this recent purchase, which I successfully negotiated for one of my interstate clients.

Managing to reduce a $7.2 million reserve price down to a final figure of $6.4 million … resulted in a saving of almost $1 million.
[Read more…]