Gather Information:
Time, and 3) Power. These will be described below.
The negotiator who
gathers the most
information usually
has an advantage.
GATHER INFORMATION
The negotiator who gathers the most information
usually has an advantage. Interview people, obtain
reports, do inspections, use the MLS (Multiple-Listing
Service) and other online resources. Hire a private
investigator on the seller if the deal is large enough,
looking for vulnerabilities (e.g., bitter divorce). You
can’t know too much.
THE FACTOR OF TIME
It helps to know if the other party has any time
constraints, along with your own, of course. Pending
foreclosure, divorce, condemnation proceedings are
some examples. If the property is “a steal”, scoop it
up fast. If it’s priced at or above “market”, then “grind
real slow”. Use time to your advantage.
THE FACTOR OF POWER
In some negotiations the power levels are uneven. One
party has more leverage over the other. Seasoned ne-
gotiators assess power levels and devise strategies to
take these into account. Then, even the weaker party
can optimize its outcome.
BE GENEROUS WHEN SELLING
Some sellers believe in “Win-Lose” negotiating. They
want “top dollah”. This apparent greed and intransi-
gence grates on everyone involved, sometimes to the
extent of legal action or retaliation. Be generous when
selling. Paint that bedroom. Purchase a Home Protec-
tion Plan for those first-time buyers. You’re on your
way to wealth.
DON’T BE CHEAP!
Keep your word. Perform everything you’ve agreed
to do. And smile as you do it, even if the deal is going
against you and you are taking a loss. Don’t whine.
Smile. Builds character….and your reputation.
so you take the other party’s counteroffer rather than
force them to take yours. This way they will feel
they won, and you will have less trouble with them
the rest of the way. And, please, don’t arbitrarily
“split the difference”. Amateur negotiators do that.
“SHARP PRACTICES”
The day will come, if it hasn’t already, when the oth-
er party will bring “sharp practices” to the table. If
these are illegal (e.g., undisclosed money back after
the close), call them on it, and refuse to participate.
If these are not exactly illegal, then counter them as
best you can, or walk away. Life is too short, and
your reputation is too important. Always “take the
high road” in negotiations.
RE-NEGOTIATING AFTER INSPECTIONS
Y’all know to re-negotiate after property inspec-
tions, right? ‘Thought so.
READING LIST
Included on the next page is a list of “Recommended
Reading.” Buy all of them, used. Read and highlight
them. Then, once a year, re-read the highlights. You
owe it to your clients, and yourself, to be in tip-top
shape a as a negotiator. v
Bruce Kellogg has been a REALTOR®
and investor for 35 years. He has trans-
acted about 500 properties for cli-
ents, and about 300 properties for him-
self in 12 California counties. These
include 14 units, 5+ apartments, offic-
es, mixed use buildings, land, lots, mo-
bile homes, cabins, and church-
es. He is available for listing, sell-
ing, consulting, mentoring, and partner-
ing. Reach him at brucekellogg10@gmail.
com, or (408) 489-0131.
THE “CONCESSION PATTERN”
In the back-and-forth of negotiations, your “con-
cession pattern” is very important because it sets up
expectations in the other party. Always negotiate fairly
tightly. Don’t concede too much because the other par-
ty will see that as an opening to seek more. Go back-
and-forth more times if need be. Try to set things up
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