IT ALWAYS AMAZES me how little importance investors place upon the skills required to put a great property deal together.
They will spend loads of time researching the market and arranging finance. But will too often get emotionally involved, and want to conclude each Negotiation as soon as possible.
1. Remember … it’s only a deal
Therefore, never allow yourself to become emotionally attached to whatever you’re negotiating for. Obviously, you need to care – but not that much!
Otherwise, you’ll end up overpaying for the property.
2. Information is generally the key
The more you know about the other party’s needs, wants and aspirations … the greater your strategic advantage becomes. And the secret is to discover most of this BEFORE the formal Negotiation actually begins.
3. You always have some level of Power
Power is very much based on perception. And simply creating the illusion of having other options will always make whatever you’re proposing seem far more appealing. But there are several other aspects of Power you can also easily master.
4. Cause them to “Invest” …
The more you can have the other party invest their time, money or effort into the deal … the less likely they are to walk away from your final proposal – when the time comes for you to close the deal.
5. Time changes everything
Most beginners tend to treat Negotiating as an “event”. Whereas, the pros realise it is very much a “process”.
Therefore, the closer you can move the other party towards their deadline … the larger will be the concessions you start receiving from them. In fact, 80% of all concessions tend to be made in the last 20% of a negotiation.
Bottom Line: You need to change your perception, and start treating Negotiating is a game. Yes, it’s a serious game! But nonetheless, it’s merely a game … with its own set of Rules, which you can very quickly master.
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