A big part of investing is knowing how to negotiate on both ends. While plenty of savvy investors make very good profits and grow their portfolios well just from intrinsic value, it always helps if you can buy a little lower or sell a little higher. Here are five tips to help you negotiate better.
He Who Talks First Loses
Savvy negotiators know that there are plenty of spaces in negotiations where the person who talks first is going to lose money. You always want to be on the winning side of this old adage.
Two Ears, One Mouth
This is another old adage; you were born with two ears and one mouth for a reason. Try to remember this and listen to others. In negotiations, this can be helpful in two ways. First, you gain the other person’s trust when they know you are listening. Second, you don’t miss important details that can help your positioning.
Ask questions and then listen. This is effective for a number of reasons. First, if you are asking questions and the other person is answering, you are controlling the conversation. That is world class leverage. Also, the more the other person talks, the more they reveal, which you can use to your advantage when it’s time to get serious about prices.
Another adage: don’t ask a question if you don’t already know the answer. This is accomplished by doing your due diligence on the research end. Make sure that you have learned everything about any property for which you are negotiating. Knowledge is power and you want all of the power you can get in any negotiation.
There is nothing like ten seconds of silence to break someone’s pattern and get them to divulge information. This is especially effective when someone makes an offer. Responding to any offer with silence is a great way to get some concessions or movement without actually doing any work.
While being silent, you can also use a shrug, a flinch or a smile. The shrug says you don’t care, while the flinch says you didn’t like what you just heard. The smile can mean almost anything.
Call Investors Edge on 1300 472 427 and let our experienced real estate professionals negotiate for you.