The art of negotiation

Preparation
Presentation
Oh Yes – Lots of Silence
NEGOTIATION IS AN ART



It depends largely on communication and knowledge of human behaviour plus anticipation of what the other side will do.



PREPARATION



Discuss some of the potential hurdles with the listing agent prior to presentation ie) Conditional Sale; closing dates; chattels, its part of being prepared and also is part of selling the other agent. Check your own attitude toward the offer. Never apologize for a low offer.



RESEARCH WHEN REPRESENTING BUYER

How long has the house been on the market?
Any previous offers?
Reason for selling?
Have you memorized the key factors?
Price, term, possession?
Comparable sales?
A well armed agent is more convincing that the offer deserves serious consideration; most motivated Sellers can accept and face reality if it makes logical sense. Sloppy presentation often results in difficult or impossible ratifications.

Be confident and enthusiastic.



PRESENTING THE OFFER

Always use the words “Agreement to Purchase” – Offer implies terms not favourable to them.
Your influence and your control are vital factors in the outcome – but don’t play God.
Go in with a friendly attitude, build rapport with the Seller, pace the Seller, and show facets of yourself that are easy to relate to.
Create trust, trust lowers tension, Seller will be more open, will reveal more, find some common ground, present yourself in ways most like the client, but without compromising yourself and your client.
Remember people usually negotiate to satisfy needs, if they didn’t have needs they wouldn’t negotiate. Most people who act on satisfying needs act on emotion and not reason, but so often we tend to get drawn into highly emotional negotiations.
ARRIVE ON TIME



It creates a negative impression if you are late.



THE FIRST FEW MINUTES



5-10 minutes of rapport building chit chat. Don’t overdo it.



PRESENT IT

Talk about the Buyers, the obstacles they overcame to reach this decision etc. Set the stage but do it quickly, Sellers are interested in the main reason for your visit, the agreement.
Human nature tells us that Sellers look at price first, if that doesn’t inspire him the rest of the agreement and printed word will not. However in order of priority Sellers usually look at Price, Possession, Financing, Conditions.
Always remember that to have an agreement accepted you must have an agreement that is acceptable.
Do not try to justify a low agreement.
Remember most Sellers’ thoughts when you present an offer are:
Will they pay more?
Can I counter without losing the Buyer?
Most objections by the Seller can usually be cured by price.
Deals are not usually lost because of closing or personal items.
Price objections are difficult to handle unless you are prepared.
Success depends on:

1) Existing market conditions

2) Recent sales

3) Capacity of the Buyer

4) Motivation of both parties



WILLING BUYER – WILLING SELLER



Essential elements – without it almost impossible to make a deal.



Price is the obvious component to agree upon. Unless both parties want to try it is almost impossible to resolve serious price differences. However an intelligent logical presentation can be convincing.



Being practical whether we like it or not often pays huge dividends. It includes of course a thorough analysis of all market conditions and circumstances relative to reality. Sooner or later no matter how painful or unpleasant, both parties must come face to face with reality. Daydreaming and wishful thinking may have a place in society but not in a real estate transaction. It is our duty to present all facts to the Seller, if he feels that any agreement is sound and is likely to be the best offer under current market conditions then one should strongly recommend acceptance.



Your knowledge of the market and your capability to illustrate the facts particularly of what Buyers have been and have not been willing to pay for comparable properties reflect directly on your success.



You should tell the Seller that the info may not be pleasant or encouraging, however it illustrates what is going on. BE PRACTICAL AND REALISTIC!



LISTEN TO THE SELLER



You know price objection usually comes up. How you handle it depends upon the success of the deal. In conclusion listen to the Seller.



Do it Right!



Are YOU Ready?

100% Commission on every deal*
$79.00 Per Month
$275.00 Per Transaction
*No exceptions.






or call us:

Toronto Office

Contact:
Michel Friedman (ext. 227)
Broker/Manager

Morneau Sobeco Centre II
895 Don Mills Rd, #202
Toronto M3C 1W3
Office: (416) 391-3232
Fax: (416) 391-0319


Mississauga Branch

Contact:
Anissa Ho (ext. 430)
Broker/Manager

Monte Carlo Corporate Centre
7045 Edwards Blvd, # 201
Mississauga L5S 1X2
Office: (905) 565-9200
Fax: (905) 565-6677


Richmond Hill Branch

Contact:
Howard Drukarsh (ext. 302)
Broker/Manager

CIBC Building
300 West Beaver Creek, #202
Richmond Hill L4B 3B1
Office: (905) 695-7888
Fax: (905) 695-0900




Branch Offices in Durham, Oakville & Burlington.

http://www.rightathomerealty.com/