property negotiation 45 mins with pictures
DESCRIPTION
45 minute version of Mark Harrison's "Property Negotiation" talk, for the National Federation of Residential Landlords (and others)TRANSCRIPT
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