PB-182 Several Negotiating Tips - Property Inc

[ Podcast Transcription ]

I’m Peter Boyd McNess, and he is Chris Lane, and welcome to another of these regular property briefings.

And a warm welcome to you, Chris. Oh, thank you. It’s good to be here. Based on an earlier feedback we’ve been receiving, Learning more about how to negotiate seems to be one of the favorite topics. I realize you offer a course on becoming a master negotiator, but I wonder if you might give our listeners a few personal tips and insights.

Well, the first tip is that you need to be prepared to seek out information. And if you want to be really successful, you need to put in the prep work and time to gather as much information as you can about the other party’s motivations. Now, Of course, you never accept exactly what they tell you without delving deeper.

You need to undertake the research a bit like a hungry reporter so that you become well placed to present and use sound assumptions to underpin your negotiating strategy. You make it sound so easy. But there must be more to it. Perhaps the most important characteristic of a master negotiator is to become a good listener.

And it’s a key part of your information gathering. And becoming a good listener can quickly uncover the other party’s real needs. Only… Then, can you work towards achieving a win win outcome, which is what you’re really seeking. Now, simply begin by showing genuine interest when you talk, and then you tilt your head slightly when you’re asking your questions, you give them feedback by rephrasing the point they’ve just made.

Your focus should be on the message, not on their delivery style. Now, if possible, take notes to show that you really do value their work. What they’re saying and adopting this technique also has some side benefits because it saves you time and will avoid arguments later about what was said or agreed.

And the other party tends to be more truthful about what they’re telling you. If they know that you’re actually taking notes. And remember, always wait until they finish before you actually reply. Don’t allow any personal bias or background to flavor your questions. Are there any specific characteristics master negotiators need to possess?

Well, I guess one key characteristic of a master negotiator is to be able to always think strategically, and that simply means planning out every detail of your negotiation. Now there’s a technique called mind mapping, where you can simply Use a pen and paper or a whiteboard to achieve this. However, there’s actually some rather nifty software to help you develop your ideas.

Particularly if you need to reorder the sequence of your thoughts as you’re putting them down. This is hard to do when you’ve already written them down on a piece of paper. Now, what I generally use is some software called Bubbleus, B U B L dot U S. It’s very simple, intuitive, and I think there’s a level you can use it to up to which there’s no cost.

So that’s Bubbleus, B U B L dot U S. Now to give you an example, those of you who know my 9 step formula, the graphic that is shown there is one that I developed and downloaded from the software package. Anyway, what I can do is perhaps include a link and you can just go to that software and try it out for yourself.

Are there any further characteristics needed for success? Another important characteristic is having the virtue of patience. Being tough will not necessarily make you a top negotiator. A master negotiator is always patient, even if the other party starts to use strong arm tactics. You’re simply not intimidated.

Can they force you to prematurely conclude the deal on anything other than a win win outcome? And perhaps the last characteristic is that it comes down to persistence. And this is quite different from patience. Patience is a virtue. Persistence can often be the only card left for you to play in order to pull off the deal.

And when all else fails, persistence is the thing that will often get you across the line. And there will be times when the other party will have countless objections, simply to see if you’ve got what it takes. Okay, now you’ve covered the personal characteristics. What negotiating style should you adopt?

Well, we’ve scoped the characteristics that you need. Let’s now look at, perhaps, at the approach that you can adopt. The truth is that you have limited choices when it comes to negotiating styles. You can either be combative, or collaborative. And it’s best to start off by collaborating because you can always get tough later if the need arises.

You see, people quickly sense whether or not you want to work towards a win win outcome or whether you’re purely there to extract the best results you can for yourself. And therefore, whenever the other party proposes something at odds to where you plan to end up, never allow things to develop into an argument.

Simply acknowledge where they’re coming from and deftly move them around to your point of view. By using a very simple technique, the technique I use, and I’ve used it over a number of years now, is what’s known as the Feel Felt Found formula. You see, if you allow objections to develop into an argument, You’re actually forcing the other party to begin to dig in and justify their position.

Anyway, try responding with something along these lines. I understand how you feel because other sellers have felt exactly the same way. When they hear, for the first time, a figure like that. However, once they had a chance to look at the entire proposal, they found there were a number of areas where they could work together to come up with a result that would be fine for everyone.

So, that’s the sort of approach when you’re trying to buy a property. In other words, What you’re doing is you’re displaying empathy by first agreeing with them, then gently turning things around to bring the other party back to the path that you want them to follow. And while you’re covering the feel and the felt portion of the formula, that should give you enough time to come up with an appropriate found aspect and thereby turn things around.

in your favor. So instead of reacting to any hostility, as you may have been doing in the past, what you need to do is diffuse things using the simple but effective formula, and you’ll discover that you can very quickly regain your composure and remove any of those unwanted emotions, allowing you to get things back on track.

Now what I’ve learned over the years is that most people tend to make offers on commercial properties based solely on price. And if you stop to think about it, what you’re really doing is trying to act in your best interest. For example, as a business person, you should never submit a quote. Because the quote suggests you’re immediately open to negotiation.

Instead, you must always refer to it as a fee proposal. And it’s the same when you come to purchase commercial property. You need to ensure there are several variables by way of balloons in the air at any one time. And this means that the negotiation simply won’t hinge on price. Because that can only lead to a win lose outcome for one of the parties.

That’s probably a whole separate discussion for another podcast. Thank you for all those great tips. What about if our listeners would like to learn more? Well, I could provide a link to my Negotiating Masterclass which you could place underneath this podcast. Yes, that would be very helpful. And thank you once again for all your insights today.

You know, it’s always a pleasure.