As human beings, we are always negotiating. Especially in the real estate space, we're negotiating all the time. In today's conversation, Eirik Davey-Gislason joins us to talk about the art of negotiation and to share persuasion principles and competitive tactics for a successful negotiation. Eirik is a master-certified negotiation expert and an instructor for the Real Estate Negotiation Institute (RENI).
Episode Highlights:
[02:01] Learning the Art of Negotiation
We oftentimes think of negotiation as a win-lose proposition or this fixed pie. It then creates within us this idea of binary choice, where we’re either on the winning side or the losing side of this negotiation. Getting nervous in a negotiation is normal especially when there are stakes involved. And the way to overcome that is to get rid of this fixed-pie mentality. Go into it with this idea that there's value to be created then you can start finding ways to grow your side of the pie. The idea is to reframe negotiations from a win-lose proposition to how you can be strategic in your plan so you can create value and get as much as you possibly can from your side while adequately satisfying the other side.
[10:07] Tips for Preparing for a Negotiation
First, have systems in place that allow you to structure that negotiation. Gather information from your side first. Understand what your client is looking for, what they want, what they need, and what their must-haves are. Understand what their experience has been, what their apprehension is, and their risk tolerance. Then find out the power balance between the relative parties. Understand what the other side is trying to achieve, what they want, and what they need.
[13:57] Common Pitfalls in Negotiation
Giving away too much information is a huge issue at the beginning of negotiation for many negotiators. They start talking to the other side and they're giving away information that they shouldn't give. This could lead them to identify what they could give you that's low value to them and get something that's relatively high value to them. The other issue is not being ceaselessly curious. Instead, we have to continue asking questions and gathering information as much as we can. There are also ways that we can influence and persuade the other side to give us more information. There are tools of influence and persuasion that you can use and understand competitive negotiation tactics.
[18:13] The Different Persuasion Principles
The self-interest principle is the idea of getting someone to understand that what you're persuading them to do is in their interest, not yours. The contrast principle is the idea of influencing the other side by reframing their contrast or by injecting contrast into your ability to persuade. The reciprocity principle is the idea of making connections with each other. The uniqueness principle is another effective one in negotiations which is the idea that you're offering them something that is unique.
Resources Mentioned:
Interested in real estate coaching? Reach out to Eirik through his coaching company Archway Partners.
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