How to Negotiate Anything, Anywhere Helena, MT


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How can you negotiate for others better than you negotiate for yourself? Be a professional, and use "principled negotiation." Dave Beson explores this concept and the proven dialogues used by real estate professionals will help you to succeed with buyers, sellers, and in tough situations.

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How to Negotiate Anything, Anywhere Helena, MT

  1. 1. “ How to Negotiate Anything, Anywhere” Dave Beson, CRS Montana Welcome
  2. 2. Are you a great negotiator? Are you getting enough easy ones? <ul><li>Overcome new challenges to commission and loyalty </li></ul><ul><li>Deal with tough customers by mastering ‘principled negotiation’ </li></ul><ul><li>Enhance your value, improve service to the customer </li></ul><ul><li>Do something pro-active to ease negotiations before they begin </li></ul>
  3. 3. Your first negotiation <ul><li>Benefit to conceding was greater than the benefit of withholding </li></ul><ul><li>Transaction was a ‘win-win’ </li></ul>
  4. 4. Principled Negotiation <ul><li>Four Key Steps </li></ul><ul><ul><li>Separate the people from the problem </li></ul></ul><ul><ul><li>Focus on interests, not position </li></ul></ul><ul><ul><li>Create options for mutual gain </li></ul></ul><ul><ul><li>Deal only from objective criteria </li></ul></ul>
  5. 5. Crucial Variables <ul><li>Power: 3rd party limited negotiating authority </li></ul><ul><li>Time - when you’re out of time, you are out of options </li></ul><ul><li>Information - use objective criteria </li></ul><ul><ul><li>Initial market time is important </li></ul></ul><ul><ul><li>Marketing effectiveness </li></ul></ul><ul><ul><li>‘ Easy exit’ listing agreement </li></ul></ul>
  6. 6. Dialogues - “Spontaneity is the result of intense preparation.” <ul><li>Practice, practice, practice! </li></ul>
  7. 7. Price <ul><li>Why is it that the best agents and the worst agents are competing on price and commission? Who wins that battle? </li></ul><ul><li>“ Mr.and Mrs.Seller: Of these three variables, which is more important to you: Price, time to sell and move, or commission?” </li></ul>
  8. 8. Offers <ul><li>Why is it that the sellers price too high, the buyers offer too low, and we’re expected to ‘pull them together?’ </li></ul><ul><li>“ Mr. and Mrs. Seller, I’ve taken the time to prepare a cma of other properties which interest the buyers. They know the marketplace. Their process of comparing resulted in them making their highest possible offer. Perhaps you’d like to see what they saw in the market.” </li></ul>
  9. 9. Better Offers <ul><li>Obtain written reasons from the buyer for offering less than full price. </li></ul><ul><li>“I’ve asked the buyer to write you a letter regarding why they prepared the offer the way that they did. They prepared this for you - (show handwritten letter).” </li></ul>
  10. 10. SELL IT OR KEEP IT. <ul><li>“ Tonight we’re looking at an offer to purchase. Although it may not be at the price we’ve dreamed about, or hoped for, there are some facts to consider. You don’t want the house, I don’t want the house, and no one else in the market wants any of the houses on this street. Except this buyer, who wants your house, THIS MUCH. We’re deciding whether to let him have it, or to keep it!” </li></ul>
  12. 12. Expiring listings <ul><li>Educate your seller that you never have expirations because of your service and communication. </li></ul><ul><li>“ Mr. and Mrs. Seller, every 21 days we will review price, terms, condition and marketing. If we need to make a change, we’ll do it at that time. I can promise that your listing will not expire. We will get it sold, or I will offer you a replacement to take my place. You don’t want to get calls from all the agents who think that they are the answer to your prayers. That would be a waste of your time. I’ll hand pick one of the best agents in town and bring them out with me to takeover the listing, if necessary. This almost NEVER happens.” </li></ul>
  13. 13. Low offer from speculator <ul><li>“ If we didn’t have this offer and we got together to adjust your market position, relative to price, what would we do? Let’s decide that now, before we look at the offer. We can benefit tonight from a realistic look at the facts.” </li></ul><ul><li>Use the low offer as a chance to review the market and adjust position. “This offer is too low! Really, so that I can better understand, may I ask, how much too low is it?” </li></ul>
  14. 14. Pricing and Conditioning <ul><li>If you looked at two Jeeps, one was bright red and polished like an apple, and the other was just off the trails, with gear and stuff inside, which one would you want to drive? If they were the same price, which one would you want to buy?” </li></ul><ul><li>Pricing a home is like fishing - you’ve got to present at the right level. A few feet or a few thousand dollars could be a ‘miss’. </li></ul>
  15. 15. Renege on commitment <ul><li>“ You promised!” </li></ul>
  16. 16. Commission-ectomy <ul><li>“ Our commission is a matter of prior negotiation. If the offer does not provide you with the results you are seeking then we must seek a remedy in the offer.” </li></ul><ul><li>“ I am not authorized to negotiate commissions on behalf of the broker-owner. I would be willing to call him to discuss the matter. What is your reason for requesting a reduction at this time?” </li></ul>
  18. 18. YOUR REFERRALS ARE IMPORTANT 06/08/09 Your Name Your Address Your Phone   Dear Bob and Mary,   I just reviewed my business for the year and found an amazing surprise!   Over 61% of my business came from past customers and repeat business. I certainly couldn’t be having my best year ever without the support of important people like you!   Thank you for keeping me in mind and for mentioning me to your friends, neighbors and relatives.   With your help I can continue to serve with even better results! All the best,   YOUR NAME
  19. 19. 06/08/09 Dear Bob and Mary,   Welcome to your new home!   William Shakespeare once said “When I was at home, I was at a better place.”   I truly hope you are finding your new home to be a “better place.”   My interest in your complete satisfaction continues.   All the best,   Dave Beson Your Name Your Address Your Phone  “ Seven Year Follow-Up” – LetterWriter™ Month# 1
  20. 20. “ SEVEN YEAR FOLLOW-UP” MONTH #25 LETTERWRITER™ 06/08/09 Your Name Your Address Your Phone  Dear Bob and Mary, As you begin the third year in your new home, may I suggest that you begin a new family tradition? Take your family out in front of the house and make a picture. Each year, repeat this activity. As the years go by you’ll notice that your family changes, and your landscaping changes, too. Oh, there are many changes in the real estate marketplace, too. My job is to keep you informed! All the best!   Dave Beson
  21. 21. Montana SEMINAR SPECIAL: BUY 2 - GET ONE FREE! $398 TEAMS… Get all 6 for $697. Coaching starts soon. (Plus $15 Shipping) e LetterWriter HP Document Assistant
  22. 22. “ When it begins, it’s already begun. And when it’s over, it ain’t over!” Herb Cohen <ul><li>What are you doing NOW to make your next negotiation EASIER? </li></ul><ul><li>Listings </li></ul><ul><li>Buyers </li></ul><ul><li>Builders </li></ul><ul><li>Creating a following? </li></ul>
  23. 23. Look Better!
  24. 24. <ul><li>WOW! HP – R.E.D.A. </li></ul><ul><li>Fliers </li></ul><ul><li>Postcards </li></ul><ul><li>Labels </li></ul><ul><li>Fax Cover Sheets </li></ul><ul><li>Letterhead </li></ul><ul><li>160 templates </li></ul><ul><li>Works in WORD </li></ul><ul><li>Plus 36 Newsletters and special reports </li></ul><ul><li>$199 </li></ul>
  25. 25. MAKE ALL NEGOTIATIONS EASIER! The System is the Solution “You want a system so good you have to stop it to fail!”
  26. 26. What are you doing to make business easier? <ul><li>Listings: use a marketing plan, a checklist, a pre-determined follow-up plan </li></ul><ul><li>Buyers: use a checklist, a weekly follow-up, and ask for their input or decision </li></ul><ul><li>Master the pre-set appointment every 21 days for active customers and clients </li></ul><ul><li>Create a following: develop an action plan for lifetime follow-up and satisfaction </li></ul><ul><li>Implement systems to stay in touch with home buyers, sellers, and prospects. They crave communication. </li></ul>
  27. 27. 1. Goldmine List <ul><li>Every contact is a potential profit center </li></ul><ul><li>‘ Not interested right now’ becomes real business later </li></ul><ul><li>Your higher level of service creates your ‘edge’ </li></ul><ul><li>Do something repetitive, personal and unique </li></ul>
  28. 28. 2.Instant buyer inventory <ul><li>Open houses, Ads, Referral prospecting </li></ul><ul><li>Use labels and send ‘anything’ </li></ul>Not Ready Yet!
  29. 29. 3. Long term referral building with your buyer customers <ul><li>Prospect insurance: ‘7 Year Follow-Up Program’ </li></ul><ul><ul><li>write every home purchaser the month they move in and every month for 7 years </li></ul></ul><ul><ul><li>consider ‘adopting’ the cross-sale buyers </li></ul></ul><ul><ul><li>create a following </li></ul></ul><ul><ul><li>(LETTERWRITER!) </li></ul></ul>
  30. 30. “ Nobody does business with a stranger.” Sam Walton <ul><li>Seven Year Follow-Up </li></ul><ul><li>Expireds </li></ul><ul><li>FSBO </li></ul><ul><li>Gold Mine </li></ul><ul><li>Favorite Homes </li></ul><ul><li>Open House Follow-Up </li></ul><ul><li>How will you follow-up on presentations? </li></ul>
  31. 31. Expireds at 150% of your avg. price! Prospect Insurance and PROFIT CENTERS <ul><li>LETTERWRITER. The series of 202 letters that </li></ul><ul><li>automatically install in your contact manager. </li></ul><ul><li> * Seven Year Follow-up with Home Purchasers </li></ul><ul><ul><ul><ul><li>PR Campaigns, including Holidays </li></ul></ul></ul></ul><ul><ul><ul><ul><li>FSBO Prospecting </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Expired Listing Prospecting </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Seller Follow-up </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Buyer Follow-up </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Tenant-Buyer Lead generator </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Referral Tracking plan </li></ul></ul></ul></ul>
  32. 32. <ul><li>LETTERWRITER PLUS. Includes 204 Letters </li></ul><ul><li>in these nine NEW ACTION PLANS. </li></ul><ul><ul><ul><ul><li>Referrals Only Prospecting Campaign - 48 letters </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Builder Marketing Specialist - 24 letters </li></ul></ul></ul></ul><ul><ul><ul><ul><li>I Have a Buyer Looking - 10 letters </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Holidays and Special Events - 24 letters </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Open House Follow-up - 9 letters </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Exclusive Agency and Continuous Buyer Follow-up - 18 letters </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Real Estate Investor Prospecting - 18 letters </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Relocation Lead Development - 12 letters </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Favorite Homes - 42 letters </li></ul></ul></ul></ul>RELO without 30% cost GOLD MINE REFERRAL PROGRAM
  33. 33. <ul><li>NewsletterWriter: </li></ul><ul><li>52 newsletters in 8 different categories </li></ul><ul><li>Print in color or bw </li></ul><ul><li>Easy to use in Word, Publ or Prep </li></ul><ul><li>e LetterWriter </li></ul><ul><li>Over 150 email messages in eight campaigns. </li></ul><ul><li>Cut and paste into favorite email program: outlook, </li></ul><ul><li>eudora, aol, etc. No postage, no printing, no hassles! </li></ul>
  34. 34. Montana Special Buy TWO get ONE FREE! Or get all SIX for $697
  35. 35. 4. Mail - Call - Mail Formula for Success through Service <ul><li>Offer information: Send special report, or publish statistics on sales in the area </li></ul><ul><li>Ask for help with a buyer </li></ul>
  36. 36. New profit centers through platinum service <ul><li>5. Builders - trades, new construction, resale referrals for a fee </li></ul><ul><li>6. Investors - low interest rates and economic confidence bring good times for investors </li></ul><ul><li>7. Corporate Relocation Directors & Personnel VIP’s - offer your service for their next move </li></ul>
  37. 37. Easiest Profit Centers to Add 8. I Have A Buyer Looking - search for inventory for current buyers. Create two or more transactions. 9. Favorite Homes - let the owners know that you LOVE their house 10. Open House Follow-up - weekly until they buy, die, or drop off the list (LETTERWRITER PLUS!)
  38. 38. 11. Turn a Commission Cut into A Prospecting Event <ul><li>When the unexpected occurs and the clients deserve or demand an adjustment </li></ul><ul><li>Create an opportunity for referrals by managing the magic moment </li></ul><ul><li>Trade the adjustment for their agreement to: </li></ul><ul><ul><li>maintain confidentiality </li></ul></ul><ul><ul><li>refer three possible buyers or sellers in one year </li></ul></ul><ul><ul><li>call you with news about their co-workers </li></ul></ul>
  39. 39. 12. How you get paid on expired listings! <ul><li>Prospect expired listings because you may succeed in getting the listing </li></ul><ul><li>You get paid to practice your listing presentation </li></ul><ul><li>You get the opportunity to ask for referrals </li></ul><ul><li>Even your own expiring listing can be a source of revenue: refer it out </li></ul>
  40. 40. Platinum Service Offers New Approach to FSBO’s <ul><li>Buying often requires quick sale - you list FSBO’s want to eliminate the ‘expert’ </li></ul><ul><li>They may want to ‘save the money’ </li></ul><ul><li>They’ve had a bad experience </li></ul><ul><li>Many perceive that you are ‘free’ when they buy, but ‘cost’ when they sell </li></ul><ul><li>Offer to help them buy, and counsel on other issues </li></ul>
  41. 41. Action Steps <ul><li>Decide on service you’ll provide </li></ul><ul><li>Be curious in negotiations </li></ul><ul><li>Ask for what you want </li></ul><ul><li>Work with easier people </li></ul><ul><ul><li>3,2,1 </li></ul></ul><ul><ul><li>Referrals </li></ul></ul><ul><ul><li>7 year follow-up </li></ul></ul><ul><ul><li>Knock out the competition </li></ul></ul><ul><li>Hear the applause! </li></ul>
  42. 42. Thank You! <ul><li>Thanks to Jeri and the Committee! </li></ul><ul><li>Write me at [email_address] </li></ul><ul><li>10 Interested in “Coaching Weekly in a Group” – drop a card! </li></ul>
  43. 43. Action Items <ul><li>New product or tool </li></ul><ul><li>Next 21 days </li></ul><ul><ul><li>Start </li></ul></ul><ul><ul><li>Stop </li></ul></ul><ul><ul><li>Think About </li></ul></ul><ul><ul><li>Continue </li></ul></ul>
  44. 44. Styles of Negotiating <ul><li>Win at all costs </li></ul><ul><li>Negotiate for mutual satisfaction </li></ul><ul><li>Win-win </li></ul>
  45. 45. Tools to Improve Negotiation <ul><li>“ You Can Negotiate Anything” by Herb Cohen </li></ul><ul><li>“ Getting to Yes” by Fisher and Ury </li></ul><ul><li>“ No Fear Negotiation” </li></ul><ul><li>” The Total Service Solution” </li></ul>
  46. 46. The End!