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Property Negotiation
We're all at it <ul><li>  vs.    vs.  </li></ul>
Three Components <ul><li>Principles  what </li></ul><ul><li>Psychology why </li></ul><ul><li>Ploys how </li></ul>
Principles
Principles <ul><li>The vendor needs a buyer more than you need to buy </li></ul><ul><li>The longer time the vendor invests...
The biggest mistake <ul><li>NEVER  OFFER THE ASKING PRICE </li></ul><ul><li>(I’ll tell you why in a bit) </li></ul>
Before you go into the negotiation <ul><li>What's the MOST you can pay </li></ul><ul><ul><li>Or least you can settle for, ...
Psychology
Beliefs <ul><li>Empowering </li></ul><ul><li>Disempowering </li></ul>
Never say yes offer the asking price <ul><li>What happens if you do? </li></ul>
Ploys
Ploys = Strategy + Tactics <ul><li>The strategy </li></ul><ul><ul><li>Frame the negotiation </li></ul></ul><ul><ul><li>Get...
<ul><li>Frame the negotiation </li></ul><ul><li>Offer low </li></ul>
Tactic  The Opening Response <ul><li>Flinch </li></ul><ul><li>For phone, gasp </li></ul><ul><li>Let's practice this, now ....
Time Tactic Rerun the figures <ul><li>It avoids the impression that you're just haggling </li></ul><ul><li>It makes the se...
Time Tactic Ask the wife <ul><li>For those without a wife... </li></ul><ul><ul><li>Husband </li></ul></ul><ul><ul><li>Boyf...
When you come back... <ul><li>Only come up by a small amount </li></ul><ul><ul><li>I was selling… </li></ul></ul><ul><ul><...
Splitting the Difference <ul><li>Whoever offers to, loses </li></ul><ul><li>Encourage the vendor to make the offer THEN We...
Good cop, bad cop <ul><li>The vendor is bad cop </li></ul><ul><li>The estate agent is good cop </li></ul><ul><li>There is ...
The sound of silence <ul><li>Offer then ... ... ... ...wait  </li></ul><ul><li>and listen </li></ul>
Photo Credits <ul><li>Following photos used under Creative Commons Licence, sourced via Flickr </li></ul><ul><ul><li>Title...
www.yourpropertyexpert.com
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Property Negotiation 45 Mins With Pictures

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45 minute version of Mark Harrison's "Property Negotiation" talk, for the National Federation of Residential Landlords (and others)

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Transcript of "Property Negotiation 45 Mins With Pictures"

  1. 1. Property Negotiation
  2. 2. We're all at it <ul><li> vs. vs. </li></ul>
  3. 3. Three Components <ul><li>Principles what </li></ul><ul><li>Psychology why </li></ul><ul><li>Ploys how </li></ul>
  4. 4. Principles
  5. 5. Principles <ul><li>The vendor needs a buyer more than you need to buy </li></ul><ul><li>The longer time the vendor invests in negotiating, the more motivated they are to get a sale </li></ul><ul><li>BATNA (Best Alternative To Negotiated Agreement) </li></ul><ul><ul><ul><li>Your BATNA is always “buy something else” </li></ul></ul></ul>
  6. 6. The biggest mistake <ul><li>NEVER OFFER THE ASKING PRICE </li></ul><ul><li>(I’ll tell you why in a bit) </li></ul>
  7. 7. Before you go into the negotiation <ul><li>What's the MOST you can pay </li></ul><ul><ul><li>Or least you can settle for, if you're selling / letting </li></ul></ul>
  8. 8. Psychology
  9. 9. Beliefs <ul><li>Empowering </li></ul><ul><li>Disempowering </li></ul>
  10. 10. Never say yes offer the asking price <ul><li>What happens if you do? </li></ul>
  11. 11. Ploys
  12. 12. Ploys = Strategy + Tactics <ul><li>The strategy </li></ul><ul><ul><li>Frame the negotiation </li></ul></ul><ul><ul><li>Get the seller to invest time </li></ul></ul><ul><ul><li>Never give away too much in one go </li></ul></ul>
  13. 13. <ul><li>Frame the negotiation </li></ul><ul><li>Offer low </li></ul>
  14. 14. Tactic The Opening Response <ul><li>Flinch </li></ul><ul><li>For phone, gasp </li></ul><ul><li>Let's practice this, now ... then we need a tactic to delay </li></ul>
  15. 15. Time Tactic Rerun the figures <ul><li>It avoids the impression that you're just haggling </li></ul><ul><li>It makes the seller wait, so they invest time </li></ul><ul><li>It makes the seller believe that you are serious and professional </li></ul>
  16. 16. Time Tactic Ask the wife <ul><li>For those without a wife... </li></ul><ul><ul><li>Husband </li></ul></ul><ul><ul><li>Boyfriend </li></ul></ul><ul><ul><li>Girlfriend </li></ul></ul><ul><ul><li>Partner </li></ul></ul><ul><li>Take your time </li></ul><ul><li>If you want to, arrange another viewing with the “partner” </li></ul>
  17. 17. When you come back... <ul><li>Only come up by a small amount </li></ul><ul><ul><li>I was selling… </li></ul></ul><ul><ul><ul><li>My asking price, £179,950 </li></ul></ul></ul><ul><ul><ul><li>They offered £170,000 </li></ul></ul></ul>
  18. 18. Splitting the Difference <ul><li>Whoever offers to, loses </li></ul><ul><li>Encourage the vendor to make the offer THEN We aren't going to drop this over a few thousand / hundred are we? </li></ul>
  19. 19. Good cop, bad cop <ul><li>The vendor is bad cop </li></ul><ul><li>The estate agent is good cop </li></ul><ul><li>There is no good cop </li></ul>
  20. 20. The sound of silence <ul><li>Offer then ... ... ... ...wait </li></ul><ul><li>and listen </li></ul>
  21. 21. Photo Credits <ul><li>Following photos used under Creative Commons Licence, sourced via Flickr </li></ul><ul><ul><li>Title slide: http://www.flickr.com/photos/jm3/48387686/ </li></ul></ul><ul><ul><li>Tesco: http://www.flickr.com/photos/adspackman/149244728/ </li></ul></ul><ul><ul><li>Market: http://www.flickr.com/photos/infomatique/1659219581/ </li></ul></ul><ul><ul><li>Tim Henman: http://www.flickr.com/photos/spiralz/20979723/ </li></ul></ul><ul><ul><li>Meeting Room: http://www.flickr.com/photos/mondriankilroy/496901718/ </li></ul></ul><ul><ul><li>Principles (brickwork): http://www.flickr.com/photos/dhammaserver/489715627/ </li></ul></ul><ul><ul><li>Collapsed bridge: http://www.flickr.com/photos/mordac/979934993/ </li></ul></ul><ul><ul><li>Formulae: http://www.flickr.com/photos/pplecke/1010539810/ </li></ul></ul><ul><ul><li>Freud: http://www.flickr.com/photos/onefromrome/228705707 </li></ul></ul><ul><ul><li>Yoda: http://www.flickr.com/photos/designgimp/2024091009/ </li></ul></ul><ul><ul><li>Newton’s tree http://www.flickr.com/photos/redjar/193859884/ </li></ul></ul><ul><ul><li>Football tears: http://www.flickr.com/photos/richelleantipolo/97771961/ </li></ul></ul><ul><ul><li>Ploys: http://www.flickr.com/photos/diamondgeyser/470025637/ </li></ul></ul><ul><ul><li>Frame: http://www.flickr.com/photos/leonski/537513221/ </li></ul></ul><ul><ul><li>Shock: http://www.flickr.com/photos/kafka4prez/48676278/ </li></ul></ul><ul><ul><li>Pennies: http://www.flickr.com/photos/caseywest/357657814/ </li></ul></ul><ul><ul><li>Split the difference: http://www.flickr.com/photos/janetmck/511216435/ </li></ul></ul><ul><ul><li>Good cop, bad cop: http://www.flickr.com/search/?l=comm&w=all&q=good+cop+bad+cop&m=text </li></ul></ul><ul><ul><li>Sound of silence: http://www.flickr.com/photos/blueferret21/1400837654/ </li></ul></ul><ul><ul><li>Thank you: http://www.flickr.com/photos/arendle/381207331/ </li></ul></ul><ul><li>Following photos are author’s, available under “Commercial, Share-alike, Attribution” CC licence </li></ul><ul><ul><li>Mark Harrison, Mary Harrison </li></ul></ul>
  22. 22. www.yourpropertyexpert.com
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