Oct 30, 2017
Successful property investors
and successful business people are good negotiators. Today, we are
going to teach you how to negotiate like a pro by speaking with a
negotiating pro.
Of course, the skill of
negotiating is important in all facets of life.
So today, I chat with George
Raptis, Director of Metropole in Sydney, to share his professional
negotiating tips.
Some people have a natural
talent for negotiation, but most learn this skill by practice and
by negotiating many deals.
There are a few rules that can
help with negotiation.
Rules for Negotiation
- Everything is
negotiable. You must remember that everything is potentially up for
negotiation.
- Know what you want before
negotiating. Always know your bottom line before getting into the
nitty gritty of negotiation.
- Try
not to offend the other party or the agent.
- Establish what is on their agenda and what is
important for them.
- Build
rapport especially in the beginning part of
negotiation.
- Look
beyond and find the hidden needs of the other party.
- Don’t
assume you both have the same agenda. They may be similar, but the
order may be different.
- Aim
for a win/win negotiation by helping them get what they want while
we get what we want.
- Treat
negotiating as a game be involved but not overly
invested.
- Never
believe anyone else is entirely on your side trust yourself and
your own instincts.
- Strive to be innocent. In negotiations smart is
dumb and dumb is smart. Act like you know less than everyone
else.
- Ask
questions. Don’t be afraid to ask the other party for advice or
more insight.
Common mistakes made when negotiating:
- Being
too emotional. Look objectively at the asset and make sure it
fulfils its purpose.
- Not
enough research. It is surprising and scary how many people
overlook the important research phase of property
investment.
- Not
enough eggs in your basket. Having an additional property in your
back pocket gives you investing power.
- Not
submitting a written offer. Only a written offer is legally
binding.
- Submitting a high offer. You don’t want to
overpay, or show your hand too early. Sometimes being emotionally
invested can lead to overpaying.
- Submitting a low offer. This can waste time, be
insulting and result in a rejection.
- Not
using a buyer’s agent. Trying to do it all on your own and not
seeking professional advice is one of the biggest mistakes that you
can make.
Links and resources:
Quotes:
“Those who are successful in
property investment know how to negotiate.” Michael Yardney
“Most people think the final
deal goes to the highest bidder, but it often goes to the best
negotiator. ” Michael Yardney
“There are ways of getting what
you want without offending the other party or making them feel like
they lost.” Michael Yardney
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