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

Getting To Yes In The Worlds 2 nd Oldest Profession- Mastering The Art Of Negotiating ™. FRANK MEARS, ABR, ABRM, CDPE, CNE, CSP, GRI, SRS, SRES. I. WHY NEGOTIATE?. Its Unavoidable Children Significant other Boss Co Workers Vendors. II. READ THEIR MINDS. Be Psychic Appear to be Psychic

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

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  1. Getting To Yes In The Worlds 2nd Oldest Profession-Mastering The Art Of Negotiating™ FRANK MEARS, ABR, ABRM, CDPE, CNE, CSP, GRI, SRS, SRES Frank Mears Seminars Inc. 2011 FrankMears.com

  2. I. WHY NEGOTIATE? Its Unavoidable • Children • Significant other • Boss • Co Workers • Vendors Frank Mears Seminars Inc. 2011 FrankMears.com

  3. 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 Frank Mears Seminars Inc. 2011 FrankMears.com

  4. III. Positional Negotiation STRATEGIES Soft /Compliant vs. Hard/Competitive Frank Mears Seminars Inc. 2011 FrankMears.com

  5. 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 Frank Mears Seminars Inc. 2011 FrankMears.com

  6. 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. Frank Mears Seminars Inc. 2011 FrankMears.com

  7. 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 Frank Mears Seminars Inc. 2011 FrankMears.com

  8. 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. Frank Mears Seminars Inc. 2011 FrankMears.com

  9. 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” You’ll discover what they really want. Frank Mears Seminars Inc. 2011 FrankMears.com

  10. 12. Search for Options. Seldom is there only one right answer. Know when you’re deadlocked on a particular issue. “ Lets put that aside for now” and continue on. 13. Challenge the Written Word. Just because its in writing doesn’t mean it’s true. 14. Defend and Value Concessions. Negotiations are give and take. Never concede anything without asking for something in return. Frank Mears Seminars Inc. 2011 FrankMears.com

  11. 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 can’t be made no matter what. Worse that not making a deal is making one in which you loose. Frank Mears Seminars Inc. 2011 FrankMears.com

  12. 17. Empathize With The Other Party. Understand what they want and why they want it. You don’t 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 doesn’t go through. 19. Set a Deadline No deal ever closes without a deadline. Frank Mears Seminars Inc. 2011 FrankMears.com

  13. 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. Frank Mears Seminars Inc. 2011 FrankMears.com

  14. V. When You Should Avoid Negotiating 1. When your client will lose everything. 2. When you’re “Sold Out” When you’re running at capacity, Don’t Deal. 3. When the demands are Unethical, Illegal orImmoral. It’s your Character, Reputation and License. Frank Mears Seminars Inc. 2011 FrankMears.com

  15. 4. When You Don’t Have Time You’ll make mistakes When under the gun, you’ll settle for less than you could otherwise get. 5. When You’re Not Prepared. You’ll think of all your best responses on your way home. Don’t negotiate until you’re ready. Frank Mears Seminars Inc. 2011 FrankMears.com

  16. VI. Negotiating Contracts • Listing Agreements • Price • Cost • Market Value • Market Price • Motivation • Bottom Line Frank Mears Seminars Inc. 2011 FrankMears.com

  17. 2. Commission Commissions are negotiable. What is your company policy? Frank Mears Seminars Inc. 2011 FrankMears.com

  18. 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 today’s 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 Frank Mears Seminars Inc. 2011 FrankMears.com

  19. Sell Your Value • Know your list to sell ratio v. MLS • DOM v. MLS • Team concept, inspectors, lenders etc • Objective trained negotiator Frank Mears Seminars Inc. 2011 FrankMears.com

  20. 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. Frank Mears Seminars Inc. 2011 FrankMears.com

  21. B. Purchase & Sale Agreement 1. The Offer a. Price vs. Terms b. The Deposit c. Financing (Pre Approval) d. Time e. Contingencies Frank Mears Seminars Inc. 2011 FrankMears.com

  22. 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 Frank Mears Seminars Inc. 2011 FrankMears.com

  23. THE STEPS1.Review with the seller a. Market Conditions b. Seller Urgency c. Sell the Buyers Frank Mears Seminars Inc. 2011 FrankMears.com

  24. 2. EXPLAIN THEIR OPTIONS a. Accept b. Reject c. Counter 3. HIT THEM WITH THE HIGHLIGHTS a. Net b. Time c. Risk Frank Mears Seminars Inc. 2011 FrankMears.com

  25. $38,000 October 15 20% down – Pre-Approved Frank Mears Seminars Inc. 2011 FrankMears.com

  26. 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 Frank Mears Seminars Inc. 2011 FrankMears.com

  27. 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 Frank Mears Seminars Inc. 2011 FrankMears.com

  28. 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. Frank Mears Seminars Inc. 2011 FrankMears.com

  29. 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 Frank Mears Seminars Inc. 2011 FrankMears.com

  30. Thanks For Participating TM Frank Mears Seminars Inc. 2011 FrankMears.com

  31. Frank Mears Seminars Inc. 2011 FrankMears.com

  32. Frank’s Extra Negotiating Stuff Here’s some things that you may can use in your day to day business Frank Mears Seminars Inc. 2011 FrankMears.com

  33. Negotiating techniques “If you can’t 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 wouldn’t you agree” Frank Mears Seminars Inc. 2011 FrankMears.com

  34. Real Estate Negotiating Issues • “We don’t 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” Frank Mears Seminars Inc. 2011 FrankMears.com

  35. 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” Frank Mears Seminars Inc. 2011 FrankMears.com

  36. 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” Frank Mears Seminars Inc. 2011 FrankMears.com

  37. Negotiating styles • Whatever • Whatever’s fair • “Your friend” • Whiner Frank Mears Seminars Inc. 2011 FrankMears.com

  38. styles continued • Guilt • The Nibbler • Hardball Frank Mears Seminars Inc. 2011 FrankMears.com

  39. Styles continued • Toddler eight laws… • If I like it, it’s mine • If it’s in my hand it’s mine • If I can take it from you, it’s mine • If I had it a little while ago, it’s mine Frank Mears Seminars Inc. 2011 FrankMears.com

  40. If it’s mine, it must never appear to be yours in any way. • If I’m building something, all the pieces are mine. • If it looks just like mine, it’s mine • If I think it’s mine, it’s mine. Frank Mears Seminars Inc. 2011 FrankMears.com

  41. Thanks For Participating TM FrankMears.com Frank Mears Seminars Inc. 2011 FrankMears.com

  42. TM FrankMears.com Frank Mears Seminars Inc. 2011 FrankMears.com

  43. 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. Frank Mears Seminars Inc. 2011 FrankMears.com

  44. 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 Frank Mears Seminars Inc. 2011 FrankMears.com

  45. Frank Mears Seminars Inc. 2011 FrankMears.com

  46. Frank Mears Seminars Inc. 2011 FrankMears.com

  47. Counter Offer Signal Patterns • Counters can signal a pattern that trained negotiators recognize and utilize • Which counter pattern do you utilize? ______________ Frank Mears Seminars Inc. 2011 FrankMears.com

  48. Counter Signal Patterns List Price @ $150,000 • 1st Counter @ $145k • Buyer counters @ $x • 2nd Counter @ $140k • Buyer counters @ $x • 3rd Counter @ $135k • Buyer Counters @ $x • No seller counter • Buyer waits for ? $$$ List Price @ $150,000 • 1st Counter @ $147k • Buyer counters @ $x • 2nd Counter @ $145k • Buyer counters @ $x • 3rd Counter @ $144k • Buyer Counters @ $x • 4th Counter @ $143.5k • Does buyer expect more? Frank Mears Seminars Inc. 2011 FrankMears.com

  49. 20. Act Quickly Strike while the iron is hot. If you don’t someone else will. Frank Mears Seminars Inc. 2011 FrankMears.com

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