Most of us think of negotiating as something we do as a task when it’s really just a method of communication.  Communication is a learned skill that often determines how successful we are in all of our endeavors.  It’s important in being efficient and effective in business transactions, including sales, marketing, speaking (presentations), emailing, in general conversation and especially, negotiating.    There’s many components to effective negotiating and various skills to understand before hand in order to be more successful in the outcome of your negotiation.  These are some of the things you should be aware of and practice so that it doesn’t appear to be a ‘negotiating’ tactic, especially when you’re meeting the owner of a property or speaking with them the first time.

• Ask questions that are easy to understand: Use them to gather information. Ask until you fully understand the seller’s situation and motivation.
• Listen carefully to the answers, this is where they often reveal why they need or want to sell.
• Be sensitive to questioning and listen to what the seller really needs. This reveals the sellers motivation. By doing so you can explain how they can benefit from your offer. We are always looking to help the seller based on their needs. Remember, Win-Win.
• Be creative and use your experience to your advantage. We are looking for a solution based on their needs. Offer what you need to fulfill their needs. We explain how we buy and why we buy. Either all Cash at a significant discount or Terms, where the seller offers attractive financing.

                         

How to enhance your negotiating skills.

• There’s a saying that goes, “He who speaks of price or terms first loses”.  We always want the other party to reveal what they want first so we can determine their bottom line (Motivation before price).  Even if there is silence, wait for them to commit.
• Always find what you can do to help the seller out of their current situation. It must make both parties happy.
• Determine if the seller doesn’t need all the cash now-helps determine how we can help them.
• Use questions that will give a yes response.  “Beautiful day out, isn’t it?”.  “Wouldn’t it be great to sell this place today?”
• When someone answers no, ask, what did you have in mind?
• Frame the questions to get the answers you want. People selling believe you are out to steal their property. Example; is there any reason you wouldn’t consider a lease with an option to buy?
• Be aware of body language and facial expressions or attitude when on the phone. It will send an instant message. Often this will reveal the truth or if they are not telling the truth.
• Silence is okay, do not force an answer, wait for a reply. NEVER say a word until they reply. He who speaks first loses. Let them speak and listen. They reveal more than they often want to or should.
• Never leave the conversation with them angry or upset, if one party including you leaves angry you lose. Always reply if they are not interested by saying, Thanks for your time, if you change your mind here is my name and number. You then ask if it’s okay to call back in a few weeks to see if they have solved their problem. Most do not and your there with a solution.
• Always try and get a contract no matter what. Tie up the property and think of another solution. You can always renegotiate or walk away based on your subject to clauses.
• Never, Never get off the phone without getting a name and correct spelling, phone number, mailing address and the address of the property for sale if different. NO EXCEPTIONS.

10 KEYS

1. Ask questions not run on sentences.
2. Listen to their answers and write them down.
3. Be understanding of the situation they are in.
4. Be courteous and really listen. (This reveals a lot)
5. Ask questions to determine the problem/motivation.
6. Why are they selling?
7. Do not think about potential solutions until you are positive you and they agree on their problem.
8. How much and how soon do they need the money?
9. Always talk about your how you can help them in terms of their needs.
10. If doing this in person don’t be running numbers in front of them. Take good notes and run numbers later. In your head do the 1% rule. Example: $200,000.00 property needs $2,000.00 per month rent to break even. So it would have to cash flow at least $2100.00 in order to make it work. That is a rough estimate.