Negotiating Like A Big Dog

By
Commercial Real Estate Agent with Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker AZ BR 528507000
https://activerain.com/droplet/4PTf

I love a good negotiation, and think I'm fairly good at it.

I know many who don't--and aren't. Negotiaphobes are easily recognized; they take the transaction personally, hate/fear the word ‘no' -- or are still licking wounds over the last deal that went south.

Negotiating real estate deals like a big dog  first requires that you forget yourself.  You are not ‘whatever troubles you' or ‘some God's gift'. You should be dispassionate, detached. Peering in through the keyhole and watching 'to see what our hero will do next'.

Realize that the other parties may not be viewing the situation this way, and your hand will need to be all the more even to balance out the brewing madness.

Before passing Go, be clear about your client's needs.
What MUST your client have . . . and what can they NOT tolerate?

(Knowing those two answers for yourself helps a lot with life in general, too)

Negotiating like a big dog requires  that you define key needs FIRST. Get the most important points secured for your client as quickly as possible. The more times the ball is returned to your court, the less steam the deal is running under.

When conveying offers or counter offers to your client, state the FACTS being presented and place the best possible interpretation on the actions of ALL-ESPECIALLY if your client begins to take personally the news from ‘the other side'.

NEVER speculate or remark about the ATTITUDE of the other party to your client. Be the voice of reason and never engage in negativity. Reassure your client of the ultimate goal. A win/win outcome is most likely to satisfy-at the time and down the line. To negotiate like a big dog, stay focused on getting that contract executed to the exclusion of all else.

Document everything. Use supporting data such as a CMA, City/County documents or inspection reports to clarify your position.

If you're going through a series of verbals (not recommended, but it happens) keep a painstakingly clear communication log, and recap with EACH go around. It is very easy to get lost and momentum that took time to build will be destroyed.

  • 7-20 3:15 pm - Seller: $142,000, earnest money $2000.
  • 7-20 10:30 am - Buyer: $134,000, 10 day inspection period, 45 day escrow.
  • 7-20 3:15 pm - Seller: $136,000 and close in 30 days. "

Quid pro quo - offer something, then ask for something else. Just like in Monopoly! When ‘Baron' proposes to purchase your Boardwalk for 150 bucks, see if they'll throw in their Railroads too! And don't ‘jack up' the principals--underpromise so you can overdeliver! Until the contract has been signed and delivered, it's not a deal. Maintain calm hopefulness, reminding your client that we are approaching but have not yet made a deal. (I tell my clients "I'll let you know when you can get excited. Not yet. Not yet. NOW!")

With EVERY communiqué, START and END with APPRECIATION:

"Hey Joe, thanks for your help on this so far. My client will accept your pricing counter, but they also would like an upgraded home warranty and the refrigerator to convey. I REALLY appreciate your willingness to work with us. Please thank the seller for his cooperation."

If you hit a snag on one point, move to any unfinished ones and resolve them. Then return to the sticky one. With each small ‘win' negotiated, positive momentum builds. Once everything else is hammered out, revisit the impasse. Often, by then, the minds are ready to meet. Kindness and humility are EVERYTHING. Going in with attitude will shoot your foot clean off.

 

Here are some more negotiating tips that are more geared toward commercial transactions, but can also apply to residential deals:

  • If you're asking the seller to finance, be prepared to make a larger down payment.
  • If you are paying your own buyer broker, the seller may discount the asking price.
  • If you or someone else extends a personal guarantee, the seller should offer better terms or be willing to carryback finance.
  • If you need a longer escrow period, be prepared to make more than one earnest deposit at agreed upon points of time.
  • An all cash transaction should give you room on the price!
  • If the seller has complete and current information about the property such as inspections, complete financial records that make buyer due diligence easier, you may be asked to limit or eliminate contingencies.
  • With a high or full price purchase offer, seller may be more willing to make repairs or warranty items beyond Close of Escrow.

Finally, I learned some solid negotiating tips from MY big dog, Luna:

  • If the food doesn't make an impression, 'SOMETHING' sprinkled on it within eyesight should do the trick (giving it the 'personal touch')
  • If the nose comes up UNDER my hand which is ON the keyboard . . . ENOUGH work--it's time to play! :) (sometimes stepping away for a 'cool off' works)
  • "If I have to wear that sillyass Raiders jersey, we BETTER be going to the PARK!" (split the difference)

LuluRaiders

And with enough TLC . . . miracles can be brought about . . .

close

Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Praful Thakkar 03/25/2016 05:28 PM
Topic:
Real Estate Best Practices
Tags:
real estate negotiations
negotiating strategies
negotiating effectively
negotiating like a big dog

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Show All Comments
Rainmaker
1,593,992
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker, Blackstone Realty Group - brokered by eXp Realty - Kalispell, MT
The House Kat

Wonderful advice. Staying calm, cool, and collected is definitely the way to go - and having clients who have definite needs and definite no-nos is key.

Mar 19, 2016 08:20 PM #17
Rainer
439,744
Raul Rodriguez
Covenant Partners Realty - San Antonio, TX
Looking out for the client's interest and not my p

Give and take, get it in writing...no such thing as a verbal contract.

Mar 19, 2016 09:09 PM #18
Rainer
592,646
Sham Reddy CRS
H E R Realty, Dayton, OH - Dayton, OH
CRS

Thanks for sharing!!!

Once all the little stuff is hammered out, revisit the impasse. Often, by then, the minds are ready to meet. Kindness and humility are EVERYTHING. Going in with attitude will shoot your foot clean off.

Mar 19, 2016 09:42 PM #19
Ambassador
1,739,731
Alan May
Jameson Sotheby's International Realty - Evanston, IL
There's no place like home.

Negotiation is one of the major reasons why sellers hire Realtors.  Negotiation makes them nervous.

Personally, I love the negotiation... and I particularly love negotiating with someone else's money.

It's important to leave your own ego out of the negotiations, and always remember the buyer/seller's goals.

Great post!

Mar 19, 2016 11:57 PM #20
Rainmaker
2,558,650
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

If you can show someone how they can win, or at least not lose, you are 50% there. If you can set it up so they think it was their idea, 100% results imminent

Mar 20, 2016 12:16 AM #21
Rainmaker
2,887,471
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

Candice,  I have a sense that the word "negotiation" is misunderstood and overused. I know that creating a win for all parties is the goal. At least it is for me. And do so delicately. Emotions removed. Focus on the goals of the client. 

Mar 20, 2016 01:34 AM #22
Rainmaker
813,284
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

Evelyn Johnston that would be cool indeed!
Sussie Sutton I have many books to write . . . real estate tends to get in the way!
Joan Whitebook understand!
Margaret Rome, Baltimore Maryland thank you! Always about gratitude!
Praful Thakkar okay, I will hit the button. Just because it's you. ;)


Mar 20, 2016 01:42 AM #23
Rainmaker
813,284
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

Inna Ivchenko you got that right!
Cheers Roger D. Mucci !
Kat Palmiotti it makes life easier, doesn't it?
Raul Rodriguez nothing enforceable, anyway.
Sham Reddy you are very welcome.

Mar 20, 2016 01:43 AM #24
Rainmaker
813,284
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

Alan May yes, YES. And yes yes! I love it too. And thank you!
Richie Alan Naggar amen to that!
Kathleen Daniels "Smart in San Jose" :D
I believe you are right. There are so many things negotiating is NOT.

Mar 20, 2016 01:43 AM #25
Rainmaker
813,284
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text
Lise Howe they sure can, for years!

Pamela Seley I think it's fun!

Mar 20, 2016 01:46 AM #26
Ambassador
4,306,997
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Thanks Candice A. Donofrio for hitting that button - I like to spread good information - and this one is, as I mentioned, Negotiations 101!

(I use some of the skills you have mentioned as well as I have learned from others and here at AR.)

Mar 20, 2016 02:28 AM #27
Rainmaker
1,561,813
Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

Negotiations takes on various forms, doesn't it . . . with all the photos/info about a listing that's readily available to folks, one of the skills that we bring is that of negotiation.  Good post!

Mar 20, 2016 04:53 AM #28
Rainmaker
40,354
Diana L Faulkner
Romanoff Realty - Alamo Heights, TX
Alamo Heights Homes for Sale - Concierge Service

Candice, thank you for the post.  I am already learning something new from joining AR:  With EVERY communiqué, START and END with APPRECIATION.  I generally start each communiqué with an appreciation and a general thanks at the end.  However, I will begin to specifically address the negotiation at hand 2x.  Thank you for providing us with good content.

Mar 20, 2016 10:55 AM #29
Rainmaker
776,222
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

Good tips for all real estate negotiators. Great idea to document everything.

Mar 21, 2016 05:06 AM #30
Rainmaker
813,284
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

Y'welcome and thank you Praful Thakkar  . . .
Indeed it does, and so true Carla Muss-Jacobs, Principal Broker/Owner !
Thank you Diana L Faulkner  . . .
It's one thing that texting has made 'a little' easier, Olga Simoncelli.

 

Mar 21, 2016 06:06 AM #31
Ambassador
881,957
Mimi Foster
Falcon Property Solutions - Colorado Springs, CO
Voted Colorado Springs Best Realtor

Excellent post. I was thinking as I was reading this, "I really like this lady. She has some excellent points." Then I got to the end and saw your dog in a Raiders jersey, and I had to hesitate.  Being a 40 year Bronco fan, it gave me pause. LOL

In all seriousness, this is a lot of good information. Thanks for putting it together.

Mar 26, 2016 05:48 AM #33
Rainmaker
813,284
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

Don't worry Mimi Foster . . . my husband is the Raiders fan. ;)

Mar 26, 2016 06:26 AM #34
Rainer
4,810
Lauren McColloch
Keller Williams West Ventura County - Ojai, CA
Serving Ojai residents current and incoming

Thank you for such a well written article. As a new agent, this laid negotiating out for me in a direct common sense way.

Apr 06, 2016 02:11 PM #35
Ambassador
881,957
Mimi Foster
Falcon Property Solutions - Colorado Springs, CO
Voted Colorado Springs Best Realtor

Welcome to ActiveRain, Lauren McColloch, and I wish you the best of luck in your new career. If you have any questions, don't hesitate to ask.

Apr 06, 2016 03:06 PM #36
Rainmaker
526,160
Dave Halpern
Keller Williams Realty Louisville East (502) 664-7827 - Louisville, KY
Louisville Short Sale Expert

If you have what the other party wants or needs, it's easier to negotiate. That strength must be firmly yielded.

Dec 03, 2017 07:09 PM #37
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Rainmaker
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Candice A. Donofrio

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