Getting To Yes In The Worlds 2nd Oldest Profession-Mastering

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Getting To Yes In The Worlds 2nd Oldest
Profession-Mastering The Art Of Negotiating

• FRANK MEARS, ABR, ABRM, CDPE, CNE, CSP, GRI, SRS,
  SRES

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I. WHY NEGOTIATE?

• Its Unavoidable
• Children
• Significant other
• Boss
• Co Workers
• Vendors

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II. READ THEIR MINDS.

• Be Psychic
• Appear to be Psychic
• Gather information with the skill of a
  private detective.
• 
  NEGOTIATION IS A PART OF LIFE

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III. Positional Negotiation

• STRATEGIES
• Soft /Compliant vs. Hard/Competitive

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Principled / Collaborative

• Problem solvers
• Separate the people from the problem
• Be hard on the problem soft on the people
• Focus on interest not positions
• Invent options for mutual gain

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IV. KNOW THE RULES

• 1. You Can and Should Negotiate
• Most negotiations are not lost at the
  bargaining table. They are lost because the
  parties never got to the table.
• 2. Check Your Ego
• Sometimes we are our own worst enemies.
• This is not the place to show off your
  cleverness.

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3. Avoid the Sympathy Trap Negotiation is
not social work it is not charity. You are
responsible to look out for your clients
interest. 4. Take the High Road Anything you
do to destroy trust will harm the
negotiations. 5. Be The Squeaky Wheel
Sometimes it pays to be a little aggravating and
persistent
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• 6. Beware of Knowing Too Much
• Showing off how much you know can work against
  you.
• 7. Confront a Psychological Attack
• Allow it and you lose. Draw attention to it
  and its power vanishes.
• 8. Ask a lot of Why Questions
• It may get them to open up and reveal their true
  motivations.

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• 9. Be Flexible
• Negotiation is a give and take process.
• Must gets
• Intend to gets
• Nice to gets
• 10. Question authority
• Sometimes the authority is only voicing
  an opinion.
• Find an alternate authority.
• 11. Listen
• Youll discover what they really want.

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• 12. Search for Options.
• Seldom is there only one right answer.
  Know when youre deadlocked on a particular
  issue.
• Lets put that aside for now and continue
  on.
• 13. Challenge the Written Word.
• Just because its in writing doesnt mean
  its true.
• 14. Defend and Value Concessions.
• Negotiations are give and take. Never
  concede anything without asking for something in
  return.

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• 15. Be Informed
• Knowledge is Power
• 1. Do your Homework.
• 2. How
• 16. Try To Obtain An Offer That Can Be Closed.
• Do the possible first. Leave the
  impossible to later. Remember some deals cant be
  made no matter what.
• Worse that not making a deal is making one in
  which you loose.

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• 17. Empathize With The Other Party.
• Understand what they want and why they want
  it.
• You dont have to agree with their
  position. Just understand it.
• 18. Get the other party to invest TIME
• The more time invested, the more to lose if it
  doesnt go through.
• 19. Set a Deadline
• No deal ever closes without a deadline.

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• Remember. Everything we do as negotiators is to
  try to help our clients get what is important to
  them.
• We owe absolute loyalty to their interest above
  all other interest including our own.

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V. When You Should Avoid Negotiating

• 1. When your client will lose everything.
• 2. When youre Sold Out
• When youre running at capacity, Dont
  Deal.
• 3. When the demands are Unethical, Illegal or
  Immoral.
• Its your Character, Reputation and
  License.

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• 4. When You Dont Have Time
• Youll make mistakes
• When under the gun, youll settle for less
  than you could otherwise get.
• 5. When Youre Not Prepared.
• Youll think of all your best responses on
  your way home. Dont negotiate until youre ready.

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VI. Negotiating Contracts

• Listing Agreements
• Price
• Cost
• Market Value
• Market Price
• Motivation
• Bottom Line

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• 2. Commission
• Commissions are negotiable. What is your company
  policy?

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• a. Flat fee
• b. limited service
• c. Unbundled services company
• d. Entry Only
• There are various business models available for
  the consumer to choose from in todays market
  place and they all have a right to be there.
• The consumer has the right to choose the model
  that is best for them. You are to never talk
  negatively regarding a competing business model

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Sell Your Value

• Know your list to sell ratio v. MLS
• DOM v. MLS
• Team concept, inspectors, lenders etc
• Objective trained negotiator

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Servicing The Listing

• A set day and time each week that you will
  contact them.
• Have a performance checklist
• 30 day price and market review.
• A written breakdown of every minute spent on
  their behalf.

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B. Purchase Sale Agreement

• 1. The Offer
• a. Price vs. Terms
• b. The Deposit
• c. Financing (Pre Approval)
• d. Time
• e. Contingencies

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2. Presentation

• a. When and Where?
• b. Who will Present?
• c. Update CMA
• d. Assemble showing records (listing agent)
• e. Start thinking like a Seller
• f. Sell the buyers a real people

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THE STEPS1.Review with the seller

• a. Market Conditions
• b. Seller Urgency
• c. Sell the Buyers

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• a. Accept
• b. Reject
• c. Counter
• 3. HIT THEM WITH THE HIGHLIGHTS
• a. Net
• b. Time
• c. Risk

2. EXPLAIN THEIR OPTIONS
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• 38,000
• October 15
• 20 down Pre-Approved

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• 4. Go over the net ( Verify the numbers)
• 5. Explain the Details of the offer
• a. Gain agreement along the way
• b. Acknowledge problems- Address later.
• 6. CLOSE, CLOSE, CLOSE
• a. Get Signatures
• b. Leave copy
• c. Deliver acceptance immediately

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VII. COUNTEROFFERS

• A. Review Points Acceptance First
• 1. Differences
• 2. Alternatives
• B. One Large vs. Many Small Changes.
• 1. Limit to one major item
• 2. Avoid being a PING PONG BALL
• C. Return offeror immediately
• D. Deliver Acceptance Immediately

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VIII. WIN WIN

• SUCCESSFUL NEGOTATIONS SHOULD BE A WIN WIN FOR
  EVERYONE INVOLVED.
• ALWAYS LEAVE SOMETHING ON THE TABLE FOR THE OTHER
  PARTY TO FEEL GOOD ABOUT.

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• MAKE EVERY NEGOTIATION A LEARNING EXPERIENCE!

Remember negotiation is all about the interest of
your clients. Your job is to protect their
interest and help them achieve a satisfactory
outcome based on their needs and objectives
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Thanks For Participating
TM
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Franks Extra Negotiating Stuff

• Heres some things that you may can use in your
  day to day business

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Negotiating techniques
If you cant overcome the objections, you will
never get to YES

• Agree with them
• I can appreciate how you feel
• Question / Probe
• To help me understand
• Isolate and commit on it
• If I could prove it to you?
• Handle it with a visual
• May I show you something that
• Close
• Now wouldnt you agree

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Real Estate Negotiating Issues

• We dont want to give you a long term listing
• We want to talk to several companies
• The other agent said he could sell it for more
• We have a friend in the business

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Negotiation Issues Continued

• The other company will take a lower marketing
  fee
• The other agent has more experience
• Lets try this price, we can always reduce it
  later
• We want to think it over

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Negotiating Issues Continued

• We have to sell but we want to find a house
  before putting ours on the market
• We want to sell it ourselves in order to save
  the commission

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Negotiating styles

• Whatever
• Whatevers fair
• Your friend
• Whiner

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styles continued

• Guilt
• The Nibbler
• Hardball

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Styles continued

• Toddler
• eight laws
• If I like it, its mine
• If its in my hand its mine
• If I can take it from you, its mine
• If I had it a little while ago, its mine

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• If its mine, it must never appear to be yours in
  any way.
• If Im building something, all the pieces are
  mine.
• If it looks just like mine, its mine
• If I think its mine, its mine.

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Thanks For Participating
TM
FrankMears.com
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TM
FrankMears.com
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Servicing The Listing

• A set day and time each week that you will
  contact them.
• Have a performance checklist
• 30 day price and market review.
• A written breakdown of every minute spent on
  their behalf.

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Verify The Listing Will Sell

• Priced competitively
• Easy to Show
• Full term
• Yard Sign
• Repairs Made
• Extras included
• Proper Marketing Fee
• Special Financing
• Possession at closing
• Unconventional Price

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Counter Offer Signal Patterns

• Counters can signal a pattern that trained
  negotiators recognize and utilize
• Which counter pattern do you utilize?

______________
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Counter Signal Patterns

• List Price _at_ 150,000
• 1st Counter _at_ 147k
• Buyer counters _at_ x
• 2nd Counter _at_ 145k
• Buyer counters _at_ x
• 3rd Counter _at_ 144k
• Buyer Counters _at_ x
• 4th Counter _at_ 143.5k
• Does buyer expect more?

• List Price _at_ 150,000
• 1st Counter _at_ 145k
• Buyer counters _at_ x
• 2nd Counter _at_ 140k
• Buyer counters _at_ x
• 3rd Counter _at_ 135k
• Buyer Counters _at_ x
• No seller counter
• Buyer waits for ?

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20. Act Quickly Strike while the iron is
hot. If you dont someone else will.