Time , and 3 ) Power . These will be described below .
GATHER INFORMATION The negotiator who gathers the most information usually has an advantage . Interview people , obtain reports , do inspections , use the MLS ( Multiple-Listing Service ) and other online resources . Hire a private investigator on the seller if the deal is large enough , looking for vulnerabilities ( e . g ., bitter divorce ). You can ’ t know too much .
Gather Information :
The negotiator who gathers the most information usually has an advantage .
THE FACTOR OF TIME It helps to know if the other party has any time constraints , along with your own , of course . Pending foreclosure , divorce , condemnation proceedings are some examples . If the property is “ a steal ”, scoop it up fast . If it ’ s priced at or above “ market ”, then “ grind real slow ”. Use time to your advantage .
THE FACTOR OF POWER In some negotiations the power levels are uneven . One party has more leverage over the other . Seasoned negotiators assess power levels and devise strategies to take these into account . Then , even the weaker party can optimize its outcome .
BE GENEROUS WHEN SELLING Some sellers believe in “ Win-Lose ” negotiating . They want “ top dollah ”. This apparent greed and intransigence grates on everyone involved , sometimes to the extent of legal action or retaliation . Be generous when selling . Paint that bedroom . Purchase a Home Protection Plan for those first-time buyers . You ’ re on your way to wealth .
DON ’ T BE CHEAP ! Keep your word . Perform everything you ’ ve agreed to do . And smile as you do it , even if the deal is going against you and you are taking a loss . Don ’ t whine . Smile . Builds character …. and your reputation .
THE “ CONCESSION PATTERN ” In the back-and-forth of negotiations , your “ concession pattern ” is very important because it sets up expectations in the other party . Always negotiate fairly tightly . Don ’ t concede too much because the other party will see that as an opening to seek more . Go backand-forth more times if need be . Try to set things up so you take the other party ’ s counteroffer rather than force them to take yours . This way they will feel they won , and you will have less trouble with them the rest of the way . And , please , don ’ t arbitrarily “ split the difference ”. Amateur negotiators do that .
“ SHARP PRACTICES ” The day will come , if it hasn ’ t already , when the other party will bring “ sharp practices ” to the table . If these are illegal ( e . g ., undisclosed money back after the close ), call them on it , and refuse to participate . If these are not exactly illegal , then counter them as best you can , or walk away . Life is too short , and your reputation is too important . Always “ take the high road ” in negotiations .
RE-NEGOTIATING AFTER INSPECTIONS Y ’ all know to re-negotiate after property inspections , right ? ‘ Thought so .
READING LIST Included on the next page is a list of “ Recommended Reading .” Buy all of them , used . Read and highlight them . Then , once a year , re-read the highlights . You owe it to your clients , and yourself , to be in tip-top shape a as a negotiator . v
Bruce Kellogg has been a REALTOR ® and investor for 35 years . He has transacted about 500 properties for clients , and about 300 properties for himself in 12 California counties . These include 14 units , 5 + apartments , offices , mixed use buildings , land , lots , mobile homes , cabins , and churches . He is available for listing , selling , consulting , mentoring , and partnering . Reach him at brucekellogg10 @ gmail . com , or ( 408 ) 489- 0131 .
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