Tips on Negotiating & Achieving a Win-Win

I was reminded the other day after reading a Realtor's blog about the nature of negotiating and how some people are unaware that this step that closes deals is an essential part of the selling process. In the book I wrote along with Greg Tonn, a property investor, called The EasySell System we addressed the nature of negotiating, and point out that it is about both parties getting a good deal. Good negotiating is about reaching a fair middle ground with both parties showing flexibility, and neither is interested in getting a one-sided deal. That is simply bad negotiating.

Here are the tips we came up with:

• Negotiating is about finding a middle ground. Typically, the seller starts high and the buyer starts low, and the best negotiation is when a middle ground can be reached to create a win-win deal.
• Shoot for a win-win for both parties. If your agenda is to make sure you gain and the other loses, it's not a win-win and not a good negotiating strategy.
• Make sure the final decision makers are present. There is no point beginning a negotiation if the person who will or won't accept the offer is not present.
• Strive to keep emotion out of the transaction. Stay business-like and professional. Remain focused, pleasant and engaging.
• Take your time. A good negotiation can take an hour or more. Make sure every aspect is discussed fully in order to find the middle ground.
• Before numbers are mentioned, make sure you have identified the terms and conditions that are acceptable to you, and ask for more than you expect to get. For example, if you are buying a house, as one of the terms you may request that the cracks in the walkway be repaired and the back deck railing be installed prior to the possession date. The seller may only agree to do the railing.
• The first person to mention a price or number is the first to lose control. In any negotiation, it is very important to maintain control of the direction the negotiation is to take. One could start the negotiation by saying "what is your minimum acceptable offer?"
• Negotiating is a give and take process, so if the other party asks for something, be willing to ask for something in return. For instance, if you are selling a house, you may be offering a possession date of 30 days, but the buyer is offering 60 days, you may agree to this but indicate that the longer possession date will result in another mortgage payment and that you will require an additional non-refundable deposit.
• The ideal scenario is to get the price you want with the terms and conditions you find most acceptable.