After reading a great post by Charles over at Portland Real Estate Blog, a little could be added to our discussion about real estate negotiations. Is it always a Zero Sum Game?
One of the first principles learned when studying negotiation tactics, is to make sure to leave your opponent feeling like they got a good deal. This can be tough especially when using terms like opponent and zero sum. Homeowners hire agents to play this game tough and get the best possible price for their home. This is zero sum, what one side wins the other loses.
But while our goal as agents is to get the best possible deal for our clients, we must remember that there are people on the other side of the transaction. Now we're not talking about being easy on the other side. But, I have come very close to losing transactions because the agent on the other side of the deal was demanding the world, rudely. My clients felt insulted by the underlying tone that was coming across during the negotiations process. Their first reaction was to just walk away.
We had a difficult conversation about what their true goals were and how, once they owned the home they would never have to "deal" with the other agent or seller again. Their response was to continue with the process, but fight tooth an nail for everything they could, even at risk of throwing the deal. Game On! We got what they wanted, but came close to losing the deal.
Risk vs Reward, this is a personal level that we all have to choose. I have found that by personally presenting offers or adding personalized letters; this paints a human face on the offer. It can reduce the "cut-throat" edge on the other side. Always give the impression that the other side "got the best" of the deal. This way they feel satisfied and are less likely to come back for more.
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