PropertyNegotiation

We're all at it

vs.

vs.

Three Components

● Principles what● Psychologywhy

● Ployshow

Principles

Principles

• The vendor needs a buyer more than you need The vendor needs a buyer more than you need to buyto buy

• The longer time the vendor invests in The longer time the vendor invests in negotiating, the more motivated they are to get negotiating, the more motivated they are to get a salea sale

• BATNA (Best Alternative To Negotiated BATNA (Best Alternative To Negotiated Agreement)Agreement)

• Your BATNA is always “buy something else”Your BATNA is always “buy something else”

The biggest mistake

NEVER OFFER THE ASKING

PRICE

(I’ll tell you why in a bit)

Before you go into the negotiation

• What's the MOST you can pay– Or least you can settle

for, if you're selling / letting

Psychology

Beliefs

● Empowering● Disempowering

Never say yes offer the asking price

● What happens if you do?

Ploys

Ploys = Strategy + Tactics

● The strategy– Frame the

negotiation– Get the seller to

invest time– Never give away

too much in one go

FrameFramethethe

negotiationnegotiation

Offer low

Tactic The Opening Response

• Flinch

• For phone, gasp

• Let's practice this, now

... then we need a tactic to delay

Time TacticRerun the figures

• It avoids the impression that you're just haggling

• It makes the seller wait, so they invest time

• It makes the seller believe that you are serious and professional

Time TacticAsk the wife

● For those without a wife...– Husband– Boyfriend– Girlfriend– Partner

● Take your time● If you want to, arrange another viewing with the

“partner”

When you come back...

• Only come up by a small amount– I was selling…

• My asking price, £179,950

• They offered £170,000

Splitting the Difference

• Whoever offers to, loses

• Encourage the vendor to make the offer

THEN

We aren't going to drop this over a few thousand / hundred are we?

Good cop, bad cop

• The vendor is bad cop• The estate agent is good

cop

There is no good cop

The sound of silence

● Offer then ...

...

...

...wait

and listen

Photo Credits• Following photos used under Creative Commons Licence, sourced via Flickr

– Title slide: http://www.flickr.com/photos/jm3/48387686/– Tesco: http://www.flickr.com/photos/adspackman/149244728/– Market: http://www.flickr.com/photos/infomatique/1659219581/– Tim Henman: http://www.flickr.com/photos/spiralz/20979723/– Meeting Room: http://www.flickr.com/photos/mondriankilroy/496901718/– Principles (brickwork): http://www.flickr.com/photos/dhammaserver/489715627/– Collapsed bridge: http://www.flickr.com/photos/mordac/979934993/– Formulae: http://www.flickr.com/photos/pplecke/1010539810/– Freud: http://www.flickr.com/photos/onefromrome/228705707– Yoda: http://www.flickr.com/photos/designgimp/2024091009/– Newton’s tree http://www.flickr.com/photos/redjar/193859884/– Football tears: http://www.flickr.com/photos/richelleantipolo/97771961/– Ploys: http://www.flickr.com/photos/diamondgeyser/470025637/– Frame: http://www.flickr.com/photos/leonski/537513221/– Shock: http://www.flickr.com/photos/kafka4prez/48676278/– Pennies: http://www.flickr.com/photos/caseywest/357657814/– Split the difference: http://www.flickr.com/photos/janetmck/511216435/– Good cop, bad cop: http://www.flickr.com/search/?l=comm&w=all&q=good+cop+bad+cop&m=text– Sound of silence: http://www.flickr.com/photos/blueferret21/1400837654/– Thank you:http://www.flickr.com/photos/arendle/381207331/

• Following photos are author’s, available under “Commercial, Share-alike, Attribution” CC licence– Mark Harrison, Mary Harrison

www.yourpropertyexpert.com