You need to develop certain principles that work for you in negotiating, and then follow them nearly every time.  Negotiating is an art, with a little science that is mostly probability, so you need to know when to apply a principle, and when to shelve it. Here are four main principles but there are more:

 

1. Your Clients’ Interests Are Paramount

 

Your clients’ interests come way in front of yours. Do not let your client miss buying the home of their dreams just because you want to do some fancy negotiating. If they think it is worth the price, be sure you give them your advice, but if they want to proceed, it is their life.   In the same manner, if it is going to take forever to negotiate a deal on the property they love, your obligation is to proceed and take the time required to get the best deal.  Another instance where your client’s judgment is paramount is the success of the negotiations. You might think it went extremely well, but if the client is not happy, there goes your repeat and referral business.

 

2. Let the Other Side Feel that They Won

 

Forcing your counterpart to recognize that you are victorious is counter productive. If they feel that they won, they will do everything possible to close the sale smoothly. If they feel that they lost, they will do everything possible to have a victory before the sale closes.

 

3. Don’t Push: Present Choices

 

I have yet to meet anyone who says they like a pushy salesman. We help people make decisions.  This principle is particularly appropriate for listing presentations. You discuss with the potential sellers that they can (1) Decide not to sell (2) Go For Sale By Owner (3) Use a discount firm or (4) Use my Team. Present all the advantages and disadvantages of each choice, and if you are the right choice, they will come to it. The first advantage of this technique is that you get clients who really support the decision they made. The second advantage is that you avoid clients who are not right for you. There are some listings that you do not want.

 

4. Present with Confidence and Conviction

 

According to President Lyndon Johnson, “Nothing convinces like conviction.” If you believe in your position, exude conviction.

 

In law school, they teach the future lawyers that 10% of the effect is the words you say, and 90% is how you say it. Be confident in what you are presenting. Don’t say this is your initial offer, that you want to run it up the flag pole, or that this offer is a good start. Each one of those phrases tells your counterpart that you are not serious about this offer. Present the offer as being a good offer.

 

For a more detailed discussion on this topic, please go to http://createagreatdeal.com/featured/steps-to-guide-your-decisions/.