Principled Negotiations: Qualities, Powers, and Planning...

2016

Georgia REALTORS® partners with the Local Boards and

REALTOR® Firms to provide quality, affordable continuing education courses.

Principled Negotiations:

Qualities, Powers, and Planning

#67076

Sponsored by:

Georgia Association of REALTORS®, GREC School #271

Partners in Education Program

Visit the Georgia REALTORS® website to learn about

membership benefits, continuing education opportunities,

networking events, and more!

(www.garealtor.com)

NOTICE: The following material is copyrighted and is provided to you for one-time use only in this GAR-sponsored course.

You may not reproduce or redistribute any portion of this packet without the express written permission from the GAR Professional Development Department.

http://www.garealtor.com/

STUDENT NOTICE

The Georgia Association of REALTORS®, Inc. is approved by the Georgia Real Estate Commission (GREC) to offer continuing education, sales postlicense, and broker prelicense courses. The GREC school code number is 271 with a renewal date of December 31, 2019. The Georgia Real Estate Commission has approved this course for three (3) hours of continuing education credit. GAR school policy defines an instructional hour as 50 minutes. To receive continuing education (CE) credit for this in-classroom course, the student must:

be on time

sign in with the course facilitator before the course begins

be present in the course during all instruction periods

return a completed evaluation to facilitator at the end of course

not have taken this course for continuing education credit within the past 366 days. There is no make-up session for this course. Cell phones and other electronic devices can be distracting. Use of communication methods such as text messaging, E-mailing, web surfing, etc. is prohibited while class is in session if it poses a distraction to other attendees and shall be grounds for dismissal. Taking pictures of PowerPoint slides requires the permission of the instructor. Entrance qualifications and standards of completion will not be based on race, color, sex, religion, national origin, familial status, handicap, sexual orientation, or gender identity. No recruiting for employment opportunities for any real estate brokerage firm is allowed during this course or on the premises while this course is in session. Any effort to recruit by anyone should be promptly reported to the Director of Professional Development; Georgia Association of REALTORS®; 770-451-1831; 6065 Barfield Road; Sandy Springs, GA 30328; or to the Georgia Real Estate Commission; 404-656-3916; International Tower; 229 Peachtree Street, NW; Suite 1000; Atlanta, GA 30303-1605. 1-20-16

PRINCIPLED

NEGOTIATIONS


This course is approved for 3 hours of real estate continuing education by the

Georgia Real Estate Commission

The Tom Gillette Company, Inc.

Monroe, Georgia 30065

Copyright 2016

PRINCIPLED NEGOTIATIONS Qualities, Powers, and Planning

COPYRIGHT 2016 THE TOM GILLETTE COMPANY, INC. MONROE, GEORGIA 30065 2

PRINCIPLED NEGOTIATIONS


OBJECTIVES

At the conclusion of this course, the student will be able to:

Describe the qualities of a good negotiator

Identify where the power to negotiate is derived

Develop a negotiating plan

Identify the physical aspects of a negotiation



As a real estate professional, you have a duty and obligation to negotiate for your client. You

have a duty and obligation to be an advocate for that client. Negotiations should not be viewed

as negative. Negotiation is not conflict; negotiation is the resolution of conflict. Negotiation is

the process of problem solving.

Qualities of a Good Negotiator

Good researcher

Willing and able to find facts prior to negotiation

Good listener

Listen to what they actually say; not what you think they should say

Patient

Take your time developing and communicating

Persuasive

Present views convincingly; overcome objections

Inventive

Tailor solutions to problems

Flexible

Adapt positions as indicated

Endurance

Staying power

Courage

Maintain position under fire

Controlled Aggressiveness

Use power when needed



The Power to Negotiate

Information = knowledge = POWER!!

Gain information about:

The property

The market

The client

The opposition

A good negotiator knows the powers of negotiation

The Power of Investment

The longer it takes, the more likely a positive outcome

The Power of Precedent

If others are doing it, you can’t say it cannot be done

The Power of Knowledge

Where all true negotiating power starts

The Power of Competition

People are motivated by loss



The Power of Expertise

Use your credentials and background

Make opponent believe you are knowledgeable

The Power of Persuasion

Use analogies, logic and overwhelming evidence

The Power of Persistence

No means “Not yet”

Most salespeople are not persistent enough

The Power of Attitude

Be confident

Ask for more than you expect to get

Negotiating Planning

The four phases of a negotiation

1. Prepare

Develop a game plan

Data

Physical

Financial

Neighborhood

Visuals

Charts; graphs; pictures

Facts

Verify information; be honest

Too much data

Having too much data increases the likelihood of noting what is

significant



Opening and closing

Have a strong opening and closing statement

Present strongest argument last

Aim high

Shoot for the moon……it is less likely you end up in mud

Be optimistic but realistic

Don’t believe you are powerless to negotiate

2. Discuss

Allow each party to argue their position

Face to Face

More difficult to reject

Allows discovery

Obtain feel

Work quickly

Phone Negotiations

Have written plan

Confirm in writing

Names

Don’t mispronounce

Repeat their name

Ask for permission to use first name

3. Propose

Movement towards bargaining

Prioritize

Must have

Want but may consider alternatives

Want but could give up

Don’t need



4. Bargain

Exchanging; something gained, something lost

Unknown Adversary

Don’t negotiate with people who lack the authority to give

concessions

Take Charge

Be in control

Take it or have it taken from you

Think

Think before you speak

Don’t rush

Taking time can bring concern to a timid negotiator

What They Paid

Does not affect value

May affect price

Attack Ideas, Not People

Act professional

Don’t take jabs

Be diplomatic

Anger is dangerous

Show Respect

Don’t be condescending

Attack the position; not the person

The Impossible Dream

Some situations are impossible

Consider the strengths and weaknesses of your position

Product

Universal VS unique

Condition



Price

High VS low

Finances

Is seller willing to help?

Timing

Seasonal

Economy

Competition

Cannot control

Physical Aspects of Negotiation

Home Field Advantage

Typically a plus

When at their place it is less threatening

Neutral Ground

Hotels, restaurants, board office, coffee shop

The Prime Seat

Authority figure sits at head of table

Close, But Not Too Close

Five feet too far; two feet too close; 3-5 feet excellent

Negotiation Timing

Late in day; late in week

Afternoon after large meal

Dressing For Negotiations

Well dressed lowers expectation of being taken advantage of

© 2017 Inspironix, Inc. (916) 4883222 InspiroScan Survey Form PIE Instructor / Course Evaluation v5 Side 1

Georgia Association REALTORS® Partners in Education Student Course / Instructor Evaluation Course Name _____________________________

Instructor ________________________________

Date _____________________________________

PLEASE FILL IN THE BUBBLES COMPLETELY SO ANSWERS ARE SCANABLE.

Please do NOT use check marks, x's or any other type of mark.The instructor encouraged my participation through questions and answers or exercises.

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The instructor presented ideas clearly and made the subject matter interesting.Strongly DisagreeDisagreeNeutralAgreeStrongly Agree

The use of the outline / handouts for study and / or reference was helpful.Strongly DisagreeDisagreeNeutralAgreeStrongly Agree

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Additional Comments:

Thank you for your input. (Revised 52017)

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