Successful negotiation skills are an art form and must be mastered for you to achieve your investment goals. People who put negotiations on the back burner thinking that they’ll get by or they’ll let someone else handle the deal will often find that they end up with a whole load of work without the pay off. Here are a few tips for negotiating your commercial property deal.
Tip #1: Do Your Homework
You’ll need to know everything you possible can about the property, the sellers, and any related pieces of information that forms the big picture in your mind of what you’re dealing with. You’ll want to be familiar with facts and figures as much, if not more than, the owners themselves.
Tip #2: Learn to Handle the Negotiations
No one is more motivated than you in getting this deal done. For that very reason, make it a point to brush up on your people skills and learn to handle the negotiations yourself. The negotiation process is the deal breaker and leaving it in the hands of someone else who isn’t as motivated as you is risky. With that in mind, there is one exception to that rule – if you have a person on your team (i.e. – real estate agent or lawyer) who is able to successfully handle the deal. This means you know how they operate and what their competence level is because you’ve seen it first hand; not because they told you they’re good at it. They also know you; what your goals are and how you would handle any situations that arise during the negotiation process.
Tip #3: Determine Outcomes before You Even Get to the Table
Before you begin negotiating your first commercial property deal, have a game plan. Determine what key points you want to target during the discussion and the outcomes you want. What price do you want? What terms will you settle for? Are there any changes you want to make in what you originally offered? Be specific. Be up front about everything you’re asking for.
Tip #4: Be Easy to Work With
Be accommodating, encouraging, and motivating at every opportunity. Help the sellers get settled in before your meeting and make small talk with them. Convey an attitude of sincerity and empathy. No matter how heated the discussions get, remain pleasant throughout. People want to work with people who make it easy to work with.
Tip #5: Listen for Clues Pertaining to the Seller’s Motivation
Everyone wants the best deal they can possible get. While it’s a dream to have all the terms of your offer approved by the seller, it’s probably more likely, that you’ll have to navigate your way through one or two obstacles. At this point, it’s necessary to listen for clues that will help to bridge the gap between you and the seller. If you find that they aren’t telling you anything, don’t be afraid to politely ask.