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’m going to 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:
“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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