Effective Negotiating for Real Estate Professionals

1
Effective Negotiatingfor Real Estate
Professionals
2
Introduction
3
Who we are
3

• Womens Council of REALTORS is a nationwide
  community of professionals
• With 15,000 members, we are the twelfth largest
  womens business organization in the U.S
• WCR is an affiliate of the National Association
  of REALTORS and is headquartered in Chicago, IL

4
Our Mission and Vision
4

• Mission
• We are a network of successful REALTORS
  empowering women to exercise their potential as
  entrepreneurs and industry leaders
• Vision
• Through our influence as successful business
  professionals, women will affect positive change
  in the profession and in the broader community

5
We believe in
7

• The Power of Relationships
• Professional Credibility
• Diversity
• Participation
• Success
• Influence
• Participation in Women s Council of REALTORS is
  the opportunity to contribute to change, and to
  be changed, personally and professionally

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How we do it
5

• Established network 300 local state chapters
• Volunteer managers trained to position their
  chapters as a business resource in their REALTOR
  communities
• Regular networking and education programmed to
  keep our members at the top of their game
• WCR members collectively generate 100 million
  in commissions annually
• We learn more, earn more, grow more

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At a glance
4

• WCR members average income - 175,500
• All REALTORS - 52,000 annually
• WCR Members who annually refer business to
  another WCR Member - 7,000
• 94 of survey respondents agree that belonging to
  WCR gives them a sense of professional pride
• All this and more makes the
  Womens Council of REALTORS the place
  Where It All Comes Together.

8

• PERFORMANCE MANAGEMENT NETWORK (PMN) DESIGNATION
• A REALTOR designation that
• combines skills-based training
• and a thriving referral network.

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PMN Designation Requirements
6

• Completion of at least 3 PMN courses
• Effective Negotiating for Real Estate
  Professionals (Newly Revised)
• Networking and Referral Systems
• The Business of your Business
  People, Planning,
  Money Management
• Harnessing the Power - Skills
  Based Performance Management
• NAR's At Home with Diversity

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PMN Designation Requirements
6

• Documented evidence of closed referral
  transactions (real estate sales) within past 24
  months totaling 30 pts
• To/from another WCR member - 10 pts
• To/from a non-WCR member - 5 pts
• From a client - 2 pts
• Earn double points by recruiting this REALTOR
• For more info go to www.WCR.org

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EFFECTIVE NEGOTIATINGCourse Overview
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Course Layout
4

• Module 1
• Pivotal Concepts
• Module 2
• Negotiation Process
• Module 3
• Strength Positions
• Module 4
• Tactics and Techniques

13
Course Objectives
6

• Students will learn
• The true objective of a negotiation
• Skilled Negotiators possess certain traits
• Unskilled negotiators can be identified and
  utilized to attain our clients objectives
• Strength positions exist and can frame the entire
  negotiation to our clients advantage
• Tactics, tools and techniques exist and are
  effective when utilized to neutralize situations
  and scenarios

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3 Foundational Premises
5

• The primary objective of the negotiator is to
  'collaborate' with the opposing negotiator so
  that your client gets
• Everything they need
• Most of what they want
• Some of what they wish for
• Without violating our laws, ethics or our
  client's confidential information   

15
3 Foundational Premises
4

• When negotiators are trained - it is never
  adversarial but we do have different jobs
• Although we may have common objectives - seller
  wants to sell/ buyer wants to buy
• Securing items, terms and conditions may present
  opposing viewpoints but are attained based on
  need and wants of our client 
• Negotiators need to understand these opposing
  goals and appreciate that difference 

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3 Foundational Premises
3

• The problem enters when the other negotiator is
  not trained and starts behaving badly - pushing
  their weight around or demanding that we jump
  through hoops 
• Egos shouldn't enter into the mix but when they
  do, I may have to 'act' or 'pretend' that I
  really appreciate the help of the other
  negotiator to work together for the benefit of
  our clients 
• That is where the strategies and tactics come
  into play.  I must do my best to keep the 'game'
  in perspective for them

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Pivotal Concepts of Effective Negotiating
Module 1
18
Module 1 Objectives
6

• Students will learn
• What a negotiation is really about, its purpose
  and ultimate objective
• The variety of negotiation formats
• Understanding what the other negotiator needs and
  wants
• How to minimize deadlock
• Utilize tips/tools of successful negotiators

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Negotiating is . . .
4

• A position of advocacy
• A Client Level Service only
• NOT provided to CUSTOMERS
• NOT provided in Transaction Brokerage
• Has some level of risk
• Requires the clients awareness, understanding
  and consent
• Power that comes from info received

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Whats the Purpose?
2

• Agent to Agent
• To secure legal, fair ethical opportunities for
  your client
• Buying Selling Consumer
• To secure terms conditions they can accept
  without blowing
  their good deal

21
Negotiations involve ...
4

• Use or abuse of information available
• Economic realities of Supply Demand that
  forecast an outcomes potential success
• Skill level of the negotiator
• Ultimate objective and emotional fortitude of the
  clients involved

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We negotiate for
4

• , terms, conditions
• Goods
• Services
• SATISFACTION

23
The Ultimate Objective
6

• Satisfaction is a perception
• Of the parties to the transaction
• Of the negotiators in the transaction
• Of the peripheral professionals associated with
  the transaction
• May have nothing to do with reality
• Has no correlation to whether the parties got a
  good deal

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Cultural Impacts
6

• Ethnic customs and cultural backgrounds can
  impact the approach to negotiating
• Low-balls are not uncommon
• Firm, unbending stance is normal
• The negotiation may actually start after the
  contract is signed
• Any item could be renegotiated at any time even
  at the closing
• Negotiations end when the closing occurs

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Negotiation Formats
4

• Organizational Format
• Personal Format
• Competitive Formats
• Win-Lose Lose-Win Lose-Lose
• Cooperative Format
• Win-Win

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Organizational Format
5

• Corporate structure where negotiations can
  occur without the negotiators knowledge prior to
  the real negotiation
• Can occur on many levels
• Can occur in different departments
• With Limited or No Authority
• Information can be given, taken leaked well
  before the actual Deal is bargained

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Personal Format
4

• The psychological aspect hinges on our
  understanding of the other negotiator and the
  people involved in the negotiation
• Before a negotiator can address the primary
  needs, wants or wishes of the parties in a
  transaction
• Negotiator must address the personal needs, wants
  and wishes of the people involved to attain some
  level of satisfaction
• If the EGO is insulted, the negotiator will never
  have an opportunity to Win

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Personal FormatFocus on the Negotiator
8

• Understand what the Negotiator wants
• To feel good not be caught in a corner
• Avoid future risks or problems
• Gain recognition for successful results
• Work easier, not harder
• Meet goals without violating integrity
• Be perceived as professionally successful
• Believe they know all laws and COE

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Personal Format Focus on the Negotiator
8

• Understand what the Negotiator wants
• Doesnt want to be surprised
• Results need to have meaning or matter
• Be trusted and relied upon
• Be listened to, treated nicely be liked
• A good explanation be told the truth
• Be perceived as honest, fair, professional, kind,
  ethical and responsible

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Successful Negotiators
6

• Successful negotiators possess certain
  personality traits that are necessary to attain
  optimum results for their clients
• Extreme patience
• Unemotional, calm and balanced
• Listens and analyzes rather than reacts
• Prepared, understands priorities and is well
  organized
• Not vested in the outcome

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Tips for Negotiators
6

• Build trust by stating objectives clearly and
  respecting theirs
• Create focus of joint problem solving
• Remain flexible open to options
• Listen, listen, listen
• Empathy for others difficulties
• Under promise/Over deliver

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Tips for Negotiators
7

• Ask lots of open ended questions requiring more
  than a yes or no answer
• Learn everything you can about the situation, the
  issues participants
• Fully analyze and understand their needs
• Set reasonable goals prioritize them
• Set minimums/targets/maximums
• Anticipate their responses prepare
• Never lose your temper or yell

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Bargaining Formats
6

• Positional Bargaining
• Competitive stances of accommodation, persuasion
  and compromise that assume there are finite
  amounts of value to be divided among the parties
• Value Negotiating
• Cooperative stance using a partnering opportunity
  that creates enhancements offering more value
  than the previously perceived total value
  available for division
• Hypothetical Bargaining
• What if If/then and Wondering are
  powerful, exploratory stances that test
  attitudes, possibilities and considerations

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Phrases of Positional Bargaining
5

• I demand the entire list-price of my home!
• I demand all of the appliances!
• I don't want to give up anything but if I have
  to give up something I want it to be as little as
  possible.
• I assume I will get more through coercion than
  through exchange. All you need to do is
  acquiesce."
• Forget about it its the principle

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Phrases ofValue Negotiating
4

• To attain my objective, I must know or
  anticipate the other persons wants or needs.
• To receive something that I value I must be
  willing to give something that they need
• If I push or demand, I will have undermined my
  ability to get what I need and want
• I will highlight the strength of my terms, time,
  conditions and ability to consummate the
  transaction since they can be more valuable than
  the money offered

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Phrases of Hypothetical Bargaining
4

• What if we did instead, would your client be
  more receptive to our offer?
• If your client did . Then we might .
• I am wondering although your client wants to do
  ., would they consider . Instead?
• If your client did that, we might be willing to
  ..

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Format Overview
9

• Positional
• Accommodation
• Persuasion
• Compromise
• Value
• Partnering
• Hypothetical
• Deadlock
• Counter Offers

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Positional Bargaining
3

• I Lose - You Win Accommodation
• Listing Agent in a Buyers Market
• Buyer Agent in a Sellers Market
• I Win You Lose Persuasion
• Listing Agent in a Sellers Market
• Buyer Agent in a Buyers Market
• I Lose You Lose Compromise
• Split the Difference strategy

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Lose-LoseCompromise I lose you lose
3

• Compromise I lose you lose
• Split the difference mentality
• Parties make major component concessions
• No satisfaction is felt or attained
• Resentment occurs within the parties
• If compromise occurs early during the
  offer/acceptance phase
• It has a higher probability of falling apart
  later
• Clients may expect the agent to contribute

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Win-WinPartnering I win you win
6

• Generally results in completed transaction
• Solidifies relations with co-broking agents
• Parties to transaction generally pleased
• Concessions on minor items only
• Nobody blames you!
• Remember this good result is a perception,
  not necessarily reality

41
Deadlock
6

• Deadlock or stalemate is usually an emotional
  response, unyielding position or personality
• Parties perceive a NO WIN situation
• Demanding positions from both sides
• Take it or Leave it on both sides
• Lack of Creative Solutions
• May indicate Un-Motivated parties

42
Avoiding Deadlock
6

• Stop Demanding
• Keep emotions in control
• Think of creative solutions that will add more
  value for your client and theirs
• Ask questions that promote cooperation
• Take a step back or a Time Out
• Keep Calm Keep Trying

43
Tactics to Counter Deadlock
5

• Re-establish common ground on a personal level by
  rebuilding rapport
• Bring in some new information
• Change the negotiator
• Change level or status of negotiator
• Change the location or venue for discussions

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Tactics to Counter Deadlock
5

• Change the perception of risk
• Change the perception of money
• Adjust minor concession
• Take a Time Out caucus
• Play the What If game
• Hypothetical Bargaining strategy

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Module 2 Types of NegotiatingSellers
Counter-Offers

• Value negotiating encourages concessions by both
• 6 Top Seller Concessions
• Sellers let buyers move in quickly.
• Sellers help with financing.
• Sellers let buyers rent with an option to buy.
• Sellers permit certain contingencies.
• Sellers pay closing costs
• Sellers pay for improvements
• Adapted from "Counteroffers What Sellers Need
  to Know,"
• Julie Garton-Good, Real Estate Update, December
  2000.
• Reprinted with permission from REALTOR Magazine

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Counteroffer Dos/Donts
7

• Know what your client identifies as fixed versus
  flexible
• Dont focus on minor issues
• Stop pushing
• Look for creative solutions to unacceptable
  contingencies
• Put lower prices into perspective
• Weigh offers based on urgency
• Counteroffers are a new offer

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Class BrainstormWhy would they say this?What is
your solution?
6

• Client says, I insist that you do not place a
  sign in my front yard.
• I refuse to have you hold an open house.
• I do not wish to use FHA or VA financing.
• Other party refuses to include a fixture
• FSBO refuses to allow you to show the property to
  a client
• Other party states No, or It is the principle.

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Preparing for a Negotiation
Module 2
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Module 2 Objectives
4

• Students will learn
• All successful negotiations follow a proven eight
  step process
• Each negotiation is uniquely crafted to address
  the personalities involved
• Listening for Signal Language is paramount to
  provide necessary clues to structuring any
  negotiation

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Opportunities to Negotiate
7

• Every aspect of the transaction is a negotiation
• Buyer Contracts
• Listing Contract
• Presentation of Offer
• Purchase Agreement
• Closing Details
• Troubleshooting problems conflicts

51
Negotiation Process
8

• Prepare and identify
• Question and assess
• State your position
• Discover their interests
• Explore options
• Bargain concessions and trades
• Package the agreement
• Evaluate for future reference

52
Prepare and Identify
10

• List/prioritizing issues
• Determine a tentative opening offer for each
  issue
• Analyze Fixed versus Flexible items
• Assess a tentative bottom line on each issue
• List the issues you think the other side will
  want to negotiate

• List priorities they will give to each issue
• Assess the counter you think they will give for
  each issue
• Assess their probable bottom line for each issue
• Identify who will present the offer
• Prepare backup plans and strategies

53
Question and Assess
7

• What info do you need from the other agent
  (negotiator) to benefit your client in a
  negotiation?
• ..
• ..
• ..
• ..
• ..
• ..

54
State Your Position
5

• Whether your offer is presented to the agent or
  to the agent and their client
• Be polite and accommodating
• Focus on the strengths of the offer
• Avoid cover letters to humanize the buyer since
  this can backfire
• Start with the inclusions and timetable rather
  than the price

55
Discovery
6

• Once youve proposed a position, discovery moves
  to the bargaining phase using Hypothetical
  Bargaining
• Listen carefully and take notes
• Dont interrupt but ask clarifying questions
• Test commitment to items
• Challenge them to justify their position
• Watch for, and send signals that theres a
  willingness to adjust positions

56
Explore Options
7

• Signal Language offers important clues to gain
  an advantage for your client
• We would find it extremely difficult to
• We arent flexible on the price, but
• Thats not workable, but
• Thats not possible because but
• There may be room for flexibility
• Statements that identify a certainty but may
  imply a possible alternative

57
Bargain
5

• Process of exchanging or Hypothetical
  Bargaining where some things are gained others
  given up
• Tentative and exploratory conversation
• If/then What if Wondering statements are used
  to trade items, terms, conditions
• If we were willing to do that then what could
  we expect in return?
• Cant they do better than that?

58
Package Agreement
6

• Partner with the other agent to benefit your
  clients ultimate goals
• Package the agreement
• Exceed all expectations
• Under promise and over deliver
• Never blindside
• Build a firm rapport with the agent just in case
  it hits the fan later

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Evaluating the Negotiation
6

• Each negotiating experience teaches us how to
  successfully utilize strategies and tactics in
  the future
• What was the outcome?
• What was accomplished?
• How was it implementation?
• Could any of the negotiated terms been improved?
• What is the effect of the relationship of the
  parties?

60
Practical Negotiating Scenarios
9

• Identify Interests and Responses to the
  following
• 1."We don't want to give you a long term listing"
• 2."We want to talk to several companies"
• 3."The other agent said he could sell it for
  more"
• 4."We have a friend in the business"
• 5."We want to think it over"
• 6. The other firm will take a lower marketing
  fee"
• 7. "The other agent has more experience"
• 8. "Lets try this price, we can reduce it later"

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Practical Negotiating Scenarios
6

• 9. "We want to find a house before selling ours
• 10."We want to sell it ourselves to save the
  fees"
• 11.Your client wants to make an offer on a new
  construction property from a well financed
  builder with good sales. No discounts
• 12.Your client wants to make an offer but the
  listing agent tells you the seller has verbally
  agreed to another offer and its under deposit.
• 13.Your client makes an offer and the listing
  agent tells you there are multiple offers.
• 14.You are negotiating the listing agreement and
  the seller wants you to cut your brokerage fee.

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Strength Strategies for Negotiators
Module 3
63
Module 3 Objectives
5

• Students will learn
• The strength strategies that are available to
  be utilized
• Strategies are strategically selected to maneuver
  specific situations
• They are used selectively not uniformly
• Economic supply and demand concepts will
  influence which strategies are used

64
Strength Strategies
5

• Strategies are utilized to psychologically
  neutralize a negotiation or a negotiator
• They are used in conjunction with tactics either
  offensively or defensively
• You cannot use all of them all the time
• Buyer Markets, Seller Markets and Even Markets
  will affect which you use
• Nothing is utilized without your clients
  permission since all include risk

65
Strength Strategies
9

• Competition
• Legitimacy and Precedent
• Ability to walk away and back
• Expertise
• Time Investment
• Persistence
• Persuasiveness
• Time
• Attitude

66
Competition
6

• Strategy used to unsettle the negotiator taking
  the form of Can you do better than that?
• Competing Offers
• Competing Buyers or Sellers
• Competing Firms for Listings
• Competing Firms for Buyers
• When there is the hint of competition, we start
  bidding against ourselves

67
Competition
14

• Offensive
• As the List Agent
• Seller Market
• ..
• As the Buyer Agent
• Buyer Market
• ..

• Defensive
• As the List Agent
• Buyer Market
• ............................
• As the Buyer Agent
• Seller Market

68
Legitimacy Precedent
7

• Legitimacy and Precedent are used to
  psychologically imply that limited or no
  negotiations can occur
• Pre-printed fees in form templates
• Pre-printed price versus list price
• Laws, Rules, Regulations
• Office Policies
• Status, Position, Designations, Degrees
• Market Trends

69
Legitimacy/Precedence
14

• Offensive
• As the List Agent
• Seller Market
• ..
• As the Buyer Agent
• Buyer Market
• ..

• Defensive
• As the List Agent
• Buyer Market
• As the Buyer Agent
• Seller Market
• .

70
Ability to Walk Away/Back
6

• Strategy that neutralizes eagerness implying that
  what is sought is not that important
• Eagerness should be sheltered
• Implies that Time is not a factor
• Imposed arbitrary deadlines not effective
• Leave door ajar for ability to walk back
• Confidential issues of motivation, urgency,
  financial position and personal secrets when
  revealed undermine negotiating!

71
Walk Away - Walk Back
14

• Offensive Walk Away
• As the List Agent
• Seller Market
• .
• As the Buyer Agent
• Buyer Market
• .

• Defensive Walk Back
• As the List Agent
• Buyer Market
• As the Buyer Agent
• Seller Market

72
Expertise
5

• Strategy used offensively to pre-frame a
  situation in advance or defensively within a
  negotiation to neutralize the negotiator using it
• Establishes your background credentials
• Impress your opponent with your knowledge,
  professionalism experience
• Never be intimidated by the opponents so-called
  experts
• Stack the deck with your own experts

73
Expertise
14

• Offensive
• As the List Agent
• Seller Market
• ..
• As the Buyer Agent
• Buyer Market

• Defensive
• As the List Agent
• Buyer Market
• ..............................
• As the Buyer Agent
• Seller Market
• .

74
Time Investment
4

• Time can be your friend or your enemy so market
  conditions will impact the use of this strategy -
  analyze wisely
• The longer the negotiation takes, the more people
  invest in the process of success
• Get the opponent to make a time commitment and
  expend some effort
• Response date pressures are only effective when
  the market favors your client

75
Time Invested
14

• Offensive
• As the List Agent
• Seller Market
• As the Buyer Agent
• Buyer Market
• .

• Defensive
• As the List Agent
• Buyer Market
• ..............................
• As the Buyer Agent
• Seller Market
• .

76
Persistence
6

• Useful strategy when market is neutral or favors
  your client
• Patience is a major asset
• Be persistent but not obnoxious
• Know when to hold firm or be flexible
• No doesnt always mean NO
• Dont be afraid to walk away but never be
  afraid to walk back

77
Persistence
14

• Offensive
• As the List Agent
• Seller Market
• As the Buyer Agent
• Buyer Market

• Defensive
• As the List Agent
• Buyer Market
• ..
• As the Buyer Agent
• Seller Market
• ..

78
Persuasiveness
6

• Strategy that provides the other negotiator with
  tools to help you and your client
• Make lists of applicable reasons
• Accumulate evidence to support your position
• Analyze address the other negotiators
  concerns by utilizing experts and authorities
• Supporting documentation, facts, information
• Requires preparation, research, details and
  personal identification with the issue

79
Persuasiveness
14

• Offensive
• As the List Agent
• Seller Market
• .
• As the Buyer Agent
• Buyer Market

• Defensive
• As the List Agent
• Buyer Market
• ..
• As the Buyer Agent
• Seller Market

80
Timing
5

• Most concessions are made at the very end of a
  negotiation when time is running out
• Time is Money
• Time is a Weapon
• Question all Deadlines
• Dont reveal your deadline
• Learn the other sides deadline
• Be patient, remain calm

81
Time as Weapon/Friend
14

• Offensive
• As the List Agent
• Seller Market
• ...............................
• As the Buyer Agent
• Buyer Market
• ..

• Defensive
• As the List Agent
• Buyer Market
• .
• As the Buyer Agent
• Seller Market
• .

82
Attitude
6

• The strategy of attitude sets the stage for the
  negotiation and underlines every request
• Exude confidence
• Back up your confidence with knowledge
• Ask for more than you need
• Ask for more than you want
• Set expectations very high

83
Attitude
14

• Offensive
• As the List Agent
• Seller Market
• ..
• As the Buyer Agent
• Buyer Market
• ..

• Defensive
• As the List Agent
• Buyer Market
• ..
• As the Buyer Agent
• Seller Market

84
Tactics and Techniques
Module 4
85
Module 4 Objectives
5

• Students will learn
• There are a variety of useful tactics
• Tactics are utilized to enhance selected strength
  strategies for certain types of negotiations
• Tactics are framed within buyer or seller
  marketplaces and supply/demand principles
• They are not used uniformly and risk is involved

86
Tactics
3

• Tactics are used to punctuate strategies with
  additional tools to secure items, concessions,
  terms and conditions that will benefit your
  clients position
• Tactics are used like spices in cooking- not
  all are used at the same time and
• Certain situations will be enhanced using a
  specific tactic while others will not

87
Tactics Techniques
13

• Silence
• The Flinch
• Framing
• Limited Authority
• Trade-Offs
• Considered Response
• Say NO once more

• Final Offer
• Crunch
• Snacking
• Mirroring
• Cookies/Throw Aways
• Dumping

88
Silence
4

• He who speaks first, loses.
• Emphasize non-negotiable items and points with
  silence
• Saying nothing prompts the other person to react
  by filling in the blanks or offering more
  information or concession
• Too much silence can create an impression that
  you are unwilling to negotiate

89
The Flinch
5

• Knee-jerk physical reaction that signals dismay,
  disagreement, disgust or disbelief to a proposal
  made by opponent
• Makes the opponent question the proposal
• Often used in conjunction with the silence
• The price is Xno flinchand that doesnt
  include any appliances
• The price is X flinch but that includes all
  appliances and a rebate for closing costs

90
Framing
6

• This tactic sends the message and sets the
  framework for expectations
• Youre going to love this
• This wont be easy
• They can only afford so much
• They cant afford to give it away
• This is in really, really bad shape

91
Limited Authority
5

• Representation is a framework for Limited
  Authority. Agents cannot make any decisions -
  only the client can
• Time is gained
• Ability to reduce concession-giving is
  substantially increased
• Were not the problem the client is
• Derails the Quickie negotiation

92
Trade-Offs
4

• Tactic is utilized to stop continuous requests
  from the other party
• This gives increased value to any item that is
  conceded
• It discourages the other negotiator from asking
  for any more
• My client would be willing to consider that but
  what can we expect in return?

93
Considered Response
6

• This tactic derails potential client remorse and
  increases their ultimate satisfaction
• Saying yes too quickly makes people wonder if
  they could have gotten a better deal
• Take time to say YES even if you know that your
  client will be jumping for joy
• Often coupled with Limited Authority tactic
• Gives the impression that what is asked for is an
  important consideration
• Gives satisfaction to the asking party when their
  request is agreed to

94
Say NO Once More
6

• Although No may not always mean no
• Asking again never hurts
• Giving consideration before immediately saying
  no again goes a long way
• I really dont think thats possible but let me
  ask my client to consider that
• I just dont know if that will work but
• NO, BUT

95
The Final Offer
4

• This tactic is often coupled with time as the
  enemy and/or ability to walk away
• Direct attempt to pressure the opponent into
  revealing their Bottom Line
• Once obtained and rejected the final offer
  simply provides a new, lower threshold from which
  to resume
• Only way to neutralize is to turn the tables and
  ask for their best offer

96
The Crunch
4

• Everything is going along just fine and then you
  hear, Youll have to do better than that
• Coupled with the framing tactic
• Counters well if a position of Limited
  Authority but disastrous if you are the
  Authority
• Easily combined with Flinching Silence!

97
Snacking
6

• This tactic is utilized way after everything has
  been agreed to and the other party has too much
  to lose to terminate the transaction
• We have a deal but
• Those drapes will be staying wont they?
• Youll be leaving the swing set, right?
• The apartment will be painted and the carpets
  shampooed wont they?
• Since youre going to Florida you wont need the
  snow-blower anymore, right?

98
Mirroring
4

• This tactic is used to elevate rapport-building
  to create a perception of sameness through
• Speech patterns
• used with Ad callers
• Body Language
• used during first personal meetings
• Interests, Hobbies, Life-styles, Pets, Ethnic and
  Religious beliefs, etc

99
Cookies Throw-Aways
3

• This tactic is used either offensively or
  defensively depending on the market
• Identify whats important to the other party
• Dont give it to them at first or
• Bargain for a needed item or concession
• Load offer with stuff you dont want/need
• To trade for items that are important
• So the other party can remove them

100
Dumping
4

• Tactic uses minor insults to diminish value to
  justify a lower offer
• My client would offer more but the property needs
  a new furnace and the driveway needs re-paving
• Home is great but the colors are all wrong
• The house is great but the kitchen really needs
  some updating and thats always very expensive

101
Thank you for participating !
102
Breakout Negotiation
Seller Market Scenario 1
103
Fact Sheet 123 Maple St Anywhere, USASellers
Market

• Property listed 2 days ago _at_ 399,900
• 2700sf 1986 Colonial cedar siding
• Very good condition but dated, especially the
  kitchen!
• Location Sought after neighborhood
• Eat-in Kitch Liv Rm w/Fplc Din Rm 1st floor
  Fam Rm 3 bdrms upstairs 2-½ bths master has 2
  lrg walkin closets 3-season rm walkout unfin
  bsmt upper deck off 3-season rm 2 car gar
• Gas furnace, C/air, roof, windows original
• Disclosures bsmt gets trickle of water in corner
  after heavy rains shed and front cement stairs
  in As Is condition

104
123 Maple Street Anywhere, USInclusions/Exclusio
nsSeller Market Scenario

• Included
• Stove/hood 2yrs
• Disposal - new
• Dishwasher 17 yrs
• Custom draperies in living dining rm
• Security system
• 1 Garage door opener other is lost
• Outdoor shed

• Excluded
• Dining Rm light
• Refrigerator
• Main bathrm mirror
• Fplc screen/tools
• Birdbath
• Swing set

105
Breakout Negotiation
Buyer Market Scenario 2
106
Fact Sheet 123 Maple St Anywhere, USABuyers
Market

• Listed 4 months ago _at_ 399,900 from 429,900
• 2700sf 1986 Colonial cedar siding
• Very good condition but dated, especially the
  kitchen!
• Location Sought after neighborhood
• Eat-in Kitch Liv Rm w/Fplc Din Rm 1st floor
  Fam Rm 3 bdrms upstairs 2-½ bths master has 2
  lrg walkin closets 3-season rm walkout unfin
  bsmt upper deck off 3-season rm 2 car gar
• Gas furnace, C/air, roof, windows original
• Disclosures bsmt gets trickle of water in corner
  after heavy rains shed and front cement stairs
  in As Is condition

107
123 Maple Street Anywhere, USInclusions/Exclusio
nsBuyer Market Scenario

• Included
• Stove/hood 2yrs
• Disposal - new
• Dishwasher 17 yrs
• Custom draperies in living dining rm
• Security system
• 1 Garage door opener other is lost
• Outdoor shed

• Excluded
• Dining Rm light
• Refrigerator
• Main bathrm mirror
• Fplc screen/tools
• Birdbath
• Swing set