23 negotiating techniques

8/4/2019 23 Negotiating Techniques

1/24

CHA

23 Negotiating l lrlit:Techniques o Getthe BestDealPossible

You'vc ust eimcd ofthe tivc mostpowerful "noahing-down"stratcgic$,Now you know thc kind ofcleals ou arc .ying to stfllc.turc wlth $ellcni.'l'hatsaid,you.uc now (ctdy to lca(n about thcspeclflc ncgotiatlng echniquccyou need o liet sellcrs o particlpare n thcsedeals.In our frrst book, wc wcnt into dctail oD thc basic five'step sys.tcm you need to folbw when negotiatiDg with $cllers.Wc cdl thlsthe Inst,mt Olfer Syslem.What follovs is i summnty of those ivcsreps. 'hclr, after tl]e s nnnAry,we'll covcr 18 florc fleSotjttlfltltcchniques that will hclp youfinc tulrc aodgo bcyond Ll.lc rlst'dlt Of-fer Systcm n order 1()get sellcrs to say,"Ycs!' to your crcative offcr.

The Fiye Steps of the Instant Offer SystemThc fivc stepsof our lnstantOfferS)'stem re as ollows:

1. Bulld. Rapport wlth the SellerIf youwant to getagrcatdealon aproperty,one ofthe mostlmportant rcquircrocdtss to build :memotlo|lelconnectioDwith

,lli

l07


2/24

122 Mlking IJia \ion.y lnvcstitrS itr Rcrl llrkt(

Notice the subtle diflereDce betwccn thcsc two ways of mak-ing yo$r offer'when you make a lbrmal offcr,

'


3/24

3 / 2l Ncotintins tchn4ucs ro cct rh( Bcsr )c l l,orsiblc

4. Make the Offcr I'hclr Idea12t

Have you cver hcard lhc exprcssion, 'Thc cook als/ays k)vcshis own cooking besr?" Wcll, the stme thiog is fruc in rc:rl cstatc.lfyou c:rngive owDership ol thc offcr ro thc sellcr, the scller will bcnruch nrorc conrnltted t() (hat specific offcr. And thi$ nreansyou'llhrvc l dci l l hat wil l st i tyclosc( | .

It s cisier thaD you might think to nrxkc thc ofler the scllcr'sidcr. llcrc's cxrctly how yoU&) it:

Invcs(or: I don t know if we co(ld d() (his, bLrtwhat if wcwcrc:rblc to ptly yr,lr hc $1,8O0pcr month, and al sontc poiDlduring thc ncxt fivc ycxls conrplcrcly cl|.\hy()U )(t ofahc pn4)-cr ty f l t hc f ir l l $2.{5,000)r icewc talkcd hrough cnr l ier . s hiss()fictbing thit \r()ul(l work for yot| or pr()blbly not?

Scllcri I think th!t( w,uld work li)r mc.fnvcslor: Yl)rl furrt thxr would work lbr y(xtrrr y


4/24

124 il'lakj|l8lti8 Moncy lnvestinS ln Rctl E$tIc

You can even play out one more powerful technique hcre atthe cnd to make surc the dcnl clo$cs highcr authority.

lnvestor: Norv, Mr. Scller, $,ant to make surc that belbrcI ask my paltnet to go donli witb this deal that you're sure thisis a lit for you xnd you wanl to move forward. So F)u're abso'hr(cly sure t lr r l you fccl this is a wif l wi , r deal?Okxy, [ thatc:$e lct's put whirt wc'vc ius( agrccd k) dow on papcr.And now, you gt t() pull out youfxgreenrcnt aDd inish up thc

detril work. lt's this dctail work llrat is thc subjccr ol our linil keyb closing hc dcal.

5. tj$c thc "Two chair" closc to Lock Up thc Dcali Iow woulcl oocopc with thi$si lunl ion? (nrhld rL cl lqf rgrcc

to y()ur sPokcl "whrt il'' olltr, you pullorlt yourllgrccnlcnt, you lilli t io wi lh t l )c scl lcr ,nnd ( lrcnxt I hc vcry cnd Lrst cforc hc si l tns n(hc (,(tcd linc hc gcrs cold lcct. IIc stxr$ (o s:ry hings likc, "Wh:rli f l l rc root comcscrxshing n; arc you goint t to pny , i) r that i ' Or,.What i1'lhc ,rousing markcl colhpscs xl)d I havc to lin cck)sc oD thcP()pcrty l|nd il's {)nly worah 50 pcrccnt of it$ crrlicr vnluc? Or,' 'Wh.r t f nry ncighbor 'sdrughtcr 's ruD( 's sychic cl ls mc this so' ln Sood dcrl?" Y()ur dcal is bcing 'whrt il'd" to dclthi'Ilcre is iLllcllcctivc trctic t() close hc dciLlwhcn you nrc xt thispoinl. I t is Lhesimplest strxtcgy we cmploy. l t 's cr l led thc "twochair closc,

Of coulsc, you renrcmber thlli chlldhood Snmc called mrLsicilchxinr wherc you and your fricnds woutd daDcc uound a circlc ol 'chairs tht t wl ls jusl onc short ol thc numbcr of pcoplc circ l i f lgaround. Whcn the music stoppcd, )


5/24

J / 23 NcSorirhdsTcchniqocs o Ctl lc ll(sr Dcal Posslblr

Al the cnd ofaDy ncgotiation, thc two parties involvcd ilwayspliy out two rolcs, thc reluctlnt rolc and thc eagcr rol(. l he reluc.tant role is pliyed out by thc party who $tarts 1()question the dcaland who is beginning ao alk lhcmselves out of the dexl. IIc or sheis xfraid ofmltking n bad dccisi( )n aod $titrts o 8et scarcd. l'hc eagcrrolc is playcd by the pa(y who wants llr|3 dcal to stay cbscd andwho tri6 to lalk lhc rcluctanl party into sticking k' the dcal- At rhccklsing s(agcs, hc clgcr prrty in es$cn(c tlies to sell thc rel(ct:r !Party ()n al l (hc bcncfits of thc dcal-Kn()wing thlrt at tlrc cDd ol y(ntr ncgotintkln thcrc:trc thcscrwo cnrpty ch:r irs, rc Dt rkcd "rchrt tnt party": tnd lnlc nt t rkcd.cxgcr pxrry, which chnir do you wtnt thc scl lcr to si l in? () fcoursc, yorr wxnl lhenr l() sit iD lhc "ciulcr pirty" ch:li|', lhc onlyway to fiakc $urc thcv sit in (hc ctgcr ch:tir ar tl|C ck)sc ol (hc dsllis t() bcrt thcm rc rhc rcluctitnt ch:rir Y()u &, rhis try introdncinltdol lbl xnd c()rrccrn t lhc vcry cnd t ( ) orc( l l )c tc i lcr inlo thc cxgcrrolc () l sclling you on thc (lcxl.

l,c( $ wilk through :ln cxirmplc (r l how this works in the rcrlworld. lnrxtiinc you h:rvc ust liottcn {hc scllcr k).grcc tt) n livc-ycitrlcxsc opli(,r on tllcir housc ilt :t iLil pricc ltod liir nr()tlthly rcn(. Y()uknow you cil|r nrilkc m(nrcy oD thc dc:tl ilnd witnt to orilkc surc i(st:ryscl()scd.Y(,u havcwrittcn rp rhc dc:rl wiah (hc $cllcr, signcd ahcxgrccnrcDt yourscll, ilD(l D(rw tufll thc itgrccntcnt to thc scllcr Ddhxnd hinl thc pcn. l lcrc is what you d() ncxl i

Invcstof l .et 's scct my nanrc gocs (k)wn hcr! ts buyer.Y(nrr nlmc gocs dowD herc as scllcr (hirDd them thc pen). Inoticcd in thc living room i bit of watc. stain {)n thc cciliDS,ht|ve',ou

fixcd th:rt lcitk yet?Sellcr Oh sure,wc l ixccl { .hat cvcralmonrhsngo.lnvcslor: Oh, okay . . - Oet thc $ellcl contiluc t() rsrd fbrahrce ao fivc sccro ds) llorv;tboul rl|c neighbors?' they don t

lhrow t|ny loud pxrrics ) rhey?Sellcr:No, no thcy don't. l'hey'rc grclt (continues t() readfi)r threc to fivc scc(ntdr!).


6/24

t26 llaking Bi8Moncy 'rvcsringn Ncrl sturcInv(stor: What about (hc wnler prc$$urc in the house? s

it stxble, or does it drop rldically whcn two pe()ple use thcbathroon at thc sl|nrcLimc?we think ]()u get thc idex.'Ihe longer thc scllct (akes (o signthciI nrmc, thc nxrte polcntial Dcgativcs-voubring up. ln esscncc,you arc gently introducing dorLbl lr the scller'$mind rhout yoLr txy-

ing in (he dcal. This sparks :r ear ofloss in thc sellcr, aDd hc or shei ficdixtcly sits lr that cagcr chnir.nd pushcs[orthc dcal to close.I)oes this work in evcry il rstrncc? ()f corrrc not. Still, it is thc moslcflective ch)sc wc hxvc cvcr used k) nrxkc sr|re hc dcirl stavscloscd.

!'our Morc Sccrcts to Phrzrsing Your Offcr So thcScller savs. "Yes"1. ltlush Out thc Scllcr's Rc4, Dcadli[c to Scll

Ohvk)usly,l you know wh(n thc s( l lcr n(cds to sel l ,you hnvcaD xdvar(x1tc n thc [cgot ir r ion. ' l hc thing is thr l nl : tny scl lcrs\ l( ) t r ' l opcnly shxrc hiscruci i l p iccc ()l nforDr l l ion with you. l-hxtis, hcy w()n t r / r / lcss ou (now l)ow to xsk i) r j l in t l rc r i l lh lwny.

llcrc s h()w wc .c(tmrmcrrd you a!'k lor this inli)rni:rl i(n. Wccxl l i t t l )c 'Co l ,on8' tcclrniquci

l [vestor: Mr. Scl lcr ,whcn did you wxnt thc prop(r ty han.dlcd by?six ororrths, 2 nrontJrs?dcnlly, whcD w()uld yo! havctbe pfi)perty hnndicd?

Scllcr: I can't wxit thar long; l'm DrovinS n fivc wceks!Idcaily, | \rould hlvc h l ahcplacc handlcd ycslcrday!'l'his qucstion is alr ollshoot of thc "trkc awiy" phrx$iDli you

Iexrncd carlier. I)1csse cc, you nrc s:ryillla o thc sellcr, "Y r don'lnccd i quick solutidr riliht? You could wair lbr six rorths or evcDl2 n)onrhs xnd it wor dn r be any skiD off)'our back, right?' A moti.


7/24

3 / 23 }lesotiatlng'ltchnntucs (o Gct rhc Eest Dcal Posiblc t27valed $eller s obviou$ly going to stafld up hcre and say hey flced :rmuch quickcr solutiorl th4n that.

Most motivated sellers :rre under thc 60{ay timer 'l'hey harveless han two monthli to sell or le4$c heir property belbrc it cattsesa maiorprol,l cm for thcm- Thc ck)$c r thcy come to their truc dead-Iine, the n}orc motiviltcd thcy beconre. Alwiys mike sure yor llushout why this dcadl ine is so impott irnt to tbc sel lc l . ' Ih is is yetnnodrcr way you arc buildinS their motivation.

Invc5ror: when did you wrnt lhc propctty handlcd, sixol()nths?'fwdvc montbs? klcrlly whcn would you hrvc it hindlcd?

Sellcr: No, not thrt long. I wrDl il h:rndlcd in thc nexl lwoIrrvcstor: )h. in thc ncxt two wccks. I'nr x littlc confu$td.

Why is it importrnt to you to hxvc thc propcrty hxndlcd in thcncxt tw() wccks?

Scllcr: llccxusc I livc ,rbout cighl hours drivc to this placc,nlrd I took two wceks olfof work 1()clctLn t up iL d scll il .

lnvcstor: Olr, bu( :rt cnst t's no big dcul ifyotr nccd lo (nkcnrore timc olT work a,rd to drivc (bwn hcrc for anothcr wcckol ' two r ighrTScllcr: Ycs, t is r big dcnl. I'nr going to gct this Plxcc soldiD hc ncxt tw() weel(sDo lx l(er what lSeehow you not onty flushcd out thc scllcr's timelinc, btrt you

nlsogo( dre $cllcr lo emolkm:dly ltcl his scnse of urgcocy ilnd moli'vatk)n.'l-hc more yor| do this, thc bcttcryourdcnl will gct. And find-inll out thc seller"s"red" deadlile to sell i$ an iDrportrl1t part ol'd]eequation.


8/24

128 MrkinB Dig \,!onq lnvesLingD krl llstnte

2, Gct Agrccment on the Concept, Then PIn Downthc DetailsAlways do your bcst to ltet the scllcrto agree to:r broad, vagucoffcr that oullines a gcneral concept, irnd work ftom that concept

to l plogressivcly finer picturc ofrll the dc[ails.Invcslor: I wilnl to nrilkc surc I heard what you iurit toldme .ight. So whnt you'rc rcally srying is th.rt you wxnt me to

txke on thc responsibilily ol'(hc proPcrty so you don t havc tobe r hndlord cvcl again, and you irst ltct n gualantccd nro|rthlypxynrcnt. Did | 8ct that riSht?"5( l lL. l Ye\ you ru.rr( l lc r iFlr l .

Invcstor:Okry. Hnlrr . wcl l . I do|r t know if I could (k)this, Mr. Scl lcr , bur wh:r t i l l coul d givc you i t gu:rrxnlccdnl()nthlyprrymcnl br u pcr iod ol l imc nf i( l ukc cl lrc ol lhc dry.t()


9/24

J / 2J NcSorirri g Trchniqu(i to c.t (hd Bcst )caj Possrbl( 129

lnvestoc So f we wcre to makc )'ou monthly paymc'nts forsiy livc or six ycffs and tlrcn cnshyou olrt tt thc $2!15,000 riccwc werc talkinS:lbout earlic( isthis somcthinli we should cvcnbothcr lo tN lk throrlgh, (rr nraybe not?

Sellcr: Well, I don't know nbort Iivc or six ycnrs, but ycsir \ r ( ,m( lr i , rS c . lx)ulLl r lk . rbout.

Invcstor: ()h, you tell me. Whnt's thc l()ngest period oft ime )ou'd l)c wi l l ing lo go kn()wing ht l t I nrxyvery wt l l cnshvou oul cxrlier if I can scll at r prolit earlier :rnd knowing tlr$thc longcf you give lrlc thc morc willinS, I anl lo ltct closcr tothxr $245,0O0 rice?scl lcr wcl l , I mil iht bc wi l l in8 to l lo ns k)ng xs th.cc r)rfou( ycirrs-

Invcstof :Oir , four or f ivc yclrs is (hc most you'd lrc wi l l -ing l( ) go7 You just u$cd (hc l lxDlic ' fcchniquc whiclr yr)u llcirn xbo(t in :r nDnrcnt.)

Scllcr: Ycrh, I gucss I could go as knrg xs livc yclrs.

3. Ask Thcm Why I'hcy l'hink thc Dcal ls a litOnc powcrfut wxy t() build thc olhcr sidc's n[livalion t() dolhc dcr l i$ o siDply rsL t l)cm why thcy saidycs o son)clhing.(:oDlinuing oD with ah carlicr Dcg{ )tinti{)n:

lnvcstori So il wc wcrc ablc lo nrrke you oronthly p:ry-mcnts foftrt nrost Iivc yeirN rnd thcn c:Lsh ou out at $240,0O0or $245.000, wbich I'nr not surc we could do, bua l wc c.(tulddo that, would it work lbr you, or probarblynot?

Scllcr':ycrr,tllat would work lbr nre.Invcstor: ()h, okry- Tcll mc, why cloyou llcl dris is il fit for

you?Sellcr: l]ecause a! lcnst I don't hxvc to bc a Imdl()rd evcr;rgain.Yes, couid flake more moncy each month if I rerted it

out mysclf, but then I'd h:rve to (leal with rennnts. Plus, I get


10/24

130 Mxting Bi8 nDcy Inrclli.g lr R(al slrrt

tl|c txx dcductkm lronl s(:tying oD rirlc. lt may noa bc idcal, botit srrres()rnds good tr) Ine nller thc lxst fc*, nr(r hs hnviDli todo lhrt cviction and thcn clciln up rhis placc.Nolicc thltt when y()t rskcd lhe scller why hc fclt it wils x fltl in hinr , you put rhc scl lcr o thc spot to just i fy his yc$dccision.'l'his lxps iDlo thc power ofc()Dsis(cDcywhich srys thitt pcoplc will

tt'() o 8rc.rt lcngtlrs to nrxkc r(rc thcy ind orhcr pcoplc pcrccivethc r l ( ) bc xcl ing consistcnr ly i th rhcirpasracr iorrs.Whcn scl lcrs:rrc ir l i inrr l iz ing hcir yesdccisi(nt ,hcy xf t publ ic ly r l l i rol ing thcirdccisi( )D ) d() l lc dcl l- ' l l is , n r r rrn,nr i tkcst cven nr{)rc nrport i tntl i ) f thcrr l ( ) rctnxinc()nsist(otrr l( l innl izr h( ( lcxl,Sc( h()wy()uurclrycr ing ir l , r ro(hcr (vcl l r )w:t [d k)sing I pr. ( ) l i (xblcc l l l .

/r, Play Dumbln rnv |lqoti:rlion. rhcrc rc tw() pux)ft!, x psychl)l()gicxll):ry.( )11rxl x t i | | rncir l pry() f l . lxrcly cxn y()nhxvc both. Wlt ich ()Dc k,

)(ru wl|nt? )( ) you wlnt l( , hc l l rc cxpcrt :urd ul ic l l k inds {)1 : tnc}rcir l (st l tc t ( rmin(, |( )gy () ntpfcss h( scl lcr rn( l tccl rcxl ly g(x)dxb()u(y()ul-scl l- lh(psy(hi)k)gict lp:ry()11-or.u.cyr)uwil l inB r() ell l rc scl lcr c l l I tc is smxrtcr thnn you rrc i t r ( l t lc l in c()ntr(J l rhccxchxDgc n ()rdcr br yol| o nrxkc: t i l i t prol i t - lhc l inlrc ix l pny() t - twc dorr ' t know xbour you, bui wc rc surc wil l iog l( ) pxy thrscllcr in psych()k,gict|ldolkrti llny d:ry of thc wcck :ts (nr8 ts wc rctftding li)r rcal dollani io rcrurn.l riginc y()u wcie thc scllcr. lf you wcrc bciDlt rortlly h()ncst,rvolrldy()urxthcrscllto an invcstor whom y()u elt wxs $nralrtcr h:tnyou, or woul( l yorr l ther scl l lo nn iovestor yol l t re! ,you wcresr irrlcr thin? Wc w()n l :tsk you rc sh()utyour answcr t{) thc w()r.ld,bul i l you rc l ikc lnosrpcoplc, you prob^bly would rathcr scl l t ( )lln iDrcstur who wxs dunrbcr thitD vou. Wiry? If ahe nvcsk)r w(resorxrtcr ( lr rn you, you would hrvc b worry abour t lcrr ing r ikcnrdlxDtlltc ol Aur l you fc{l smi(cr rltrn the in}cstor, rhis puts youxt cisc :rnd belps you lecl conlidcnt. Arcn t you, or any scllcr lbr


11/24

3/ 2J NcSotillin8 llchntqucs to Gct thc BcsrDcrlPosslhlc lJ l

that matler, morc likely to m:lke r decision to move forward wilh rdcal if you llre relaxcd a,rd ftclin[i Sood about yoursclfl Of courscyou are more willing to snyyes to the deal.

Ibw, as an invcstor, do you play dumb? You movc thc conver's:r(ion:rlong by asking questbns. You let thc sellertcll y()u thc fa!_tsrnd figures. And you .reucr, erer tty K, imptcss the scller with dis-play$offancy tcrmin(,logy and Sencral "know'it'all'ncss." lf yor donced to iniccr r fhct, tfse xfrguutic ike, I u'as talking tith lhis rcalcsk c broket n.I hc blal wc lhdt iI s cttslom.try Jbt lhe scller k)Pdll,r the ti e insut tr,'cc l)llcl ut ckrsitrg."' l 'wo I inxl wrys t ( ) "pl irydonrb." i inr t , r lk s low rnd prusc n k)t .Mosl bcginning invcstors who nrcct wi(h scllcrs xrc ncrv()lrs. r dl)c iDgncrvous hey tcnd to rrcc nhci ldwir lr thcir pacc of spccch,h)sing lhc scllcr froDr thc start, 'l he scller won'l ask you lo skrwdown, he' l l s imply bc conl i$cd rnd shut dowo- Don' l lct this hrp-pcn t() you. lnstcxd, pncc your$cll likc frcquent pauscs i)r:r dctjl)brc:rth. /lsk a fricnd () go wi(h you oD an irppointmcnr or two l()scc if from thc outsidc thcy noticc you g(ring s() fast thxt y(nt kNclhc scllcr, (,r il y{rur p.lcin8 is slow cnough t() hclp thc scllcr ltclcomlbrtrblc.

Sc(o|ld. nrrkc surc you do 4// nxth sk)wly rnd stcp by srcp.Look llt rllc lblbwing cxir tplc:

I ' rvcs(n: Lcl ' r i scc herc, yolr hnd thc propcrty l is lcd r t$20O,OO0or tcw nrontbs. What Derccnt would thc rci lcslltc agcnt h:rvc loltcrr lhcr?Scller: 6 pcnccnt.

lnvcsaor: )h, so lct's scc, 6 perccDt of$ t 00,O0O s 56 ,000.So fyou hrd a pricc ofi2U),OOO, thc r..al csti(e a8cnt coNnris.si{)o would lrnvc becn 56,000 plus $6,000.'l'bat's $12,{)00 inctonmission. Did I gct that right?

Scller: Ycs.lDvestor iOkay, so $20O,O00miDus the $12,000 q/ouldluve ncanl you would lr1lve ,otlen $l8tt,Oo0, if y(\t g()t a full-

Priccd ofTcrwith the rc. esta(e gent. Did I do thc math right?Somctimcs I get the numbsrs mixed up.


12/24

laz MrkinU tig llon(y Irvcsting id Rerl Sslnt(

'l his mxy secm unneccssary o you, cspccially if you rre a wbizwith mrrlh. but wc have ol)scrvc(l thirl most scllcrs gct ferl nervolrswhen you talk about nuorber$.Mitybe thcy arc rcn)enrbering back toelcne)rtrr,{ school and h.lving 10 pclform nth on thc bhckboaftlin lionl of thc !r4n)lc class-:rnd m:rking r nri$trke- ()r mxybe thevjnst arcu't good with numbcrs. l hc best \,xy to makc thenr ltel coll)-lbr tablc is to t : r lk thcm through t irc nuorbcls vcry sl( )wly- ) l)n ' tb[iD!! in a fr)rcy cxlcLrhlor. Il thc srllcr ollcrs t(] kn(l you .t calcLrlltorst-!, Crcirt, bul I'or rx)t t(xr Boodwith thcse things. (jin y(xr rh nrc( ,ut l l r ( l igure this out wilh lne?"1|)c wLLlkhcnr through cxxct l) ,wh:t t k) punch in lhr cxl(uhtor, ard lc l t l rcDrgi\ , ( you r l l thc rn-s\rvcl.s.ixn y()Lrcc ()w mLrch ct tcr his wi l l m e thc scl l( r lecl?'l-his s vcry di!fcrcnl appl ():rch ionr tu()st nvest()rs rho wrlkint() h( l iv ing r(ronrwith t l lc ir luncv rcvcrsck)! t ic, urbo.clrxrgcdcr lcuhl(ns l l r r l thcv usc (o wlt i l ) o ur i toror( iz i t t iu) hir ls gl lr bcli)rc tlt( sellrt s cycs. llcorcnrbcr, tlrr."( ir rvcskn-s rc nr:lkiDg tltcnrsclvcs (xr( g(xxt r t thc cxl)sose ) l hc scl lcr . l is x t lxntsl, rd iorcsl l l ( ) rc nrpof t : rnt ix lhc ic l lcr t ( ) ccl sDrxrt l txn t is i) l y()u, hxt is,i l yonr rcalgol l is o ntrkc Droncy. opky dLr l ) l

N() tonlv wil l atnrakc hc s( l lcrs ccl nr)rc r lnr lbr(rblc, l )ui i lwi l l a ls() cl thc scl lc ls1() c rn()rcwil l i l r l t ( ) )c lp y(xr n (hc t lc! , ( )l ixt idr . l his, n tur t l , \ l , i l l r : r isc hc scl lcrs scl l :cstccnr() givc thcrnI lccl jng ol bcing o conlrol. nILI i ing hcl l l rx)rc l ikcly t( )c lcci( lc )scl l o y()u. l wi l l : r lso inv() lvc hc scl lcrs thc wholc ncgor ixr ionploccss s c( t laborxtofs it thct hxD nsconlpct j tofs.

'fhrcc Surcflrc Techliqucs to Gct thc Itest PriceWhcn il coDrcs o pricc, n):tnv i vcrtoN hxvc lroublc getling

l l ie scl l( r to colned() \ \ ,n n l \1rLyhat s( i l lkc(psboth pl lr l ics acl inggood:rl)out fhc oegotiation. ltcmcmbcr. 1() ,ct sellcls a()parficipulein thc l i r rncing, which is thc kcy cirmnr()n lcronr inxtor n xl l l ,Lrr '


13/24

3123 Ncaotilrina ltchnigucs to Gct thc ll6t Drll PossiDlc ta3chasc Option dsnls, you nccd 1o maintain rappofi throughout thccnlirc negotixtion.

Bully tnctics ol banging thc sellcr ovcr thc bead witl al l thcrL?airs)'ou will nccd to do. thc hiSh co$t ofclosing, aod thc rjncr.lllick ofappcal ofthcir honrc mi8hl work ifyou wrc Detl()tiatingan:llkllsh olfcr, but it is not the hcst wxy !o Lct thc scllcr() be flcxiblcon tctmlj. llerc ittc lhrcc surefifc tcchriqres that you c?n Llsc o$ofterr the scllcr !rp with rcspcct to their a$king pricc li,r the prop.crty,'l'hey work bcsl whcn yo! nsc thesc thrcc techni(ltlcs in ttrnr,onc right allcr thc ollrcr. Wc'll I,ivc y()u 1ln exxmplc ol whll (llcys'ound ike in { negotiition, thcn wc'll tio bick through cach 1)l hc(lucc tcchnklucs glvirut you insidcr tips l() makc them nrorc cll(c.livc lor you,

lnvcsaor: \vhxr wns it y()u rvcrc skirrg for thc proP(rlyxg:ain?

Scllcr: l'nl nskinB $35O,{)0Oor thc propcrty.Invcs(or: ()h, ilnd whitl {itl yo\ rcalisllc.tll! (xpcc( () llc(lbr i t? ' lcchDktuc#l)scl lcr : l lcr l is( icr l ly, I think I l l gct : r r lc$t SJ: t5,000 o$:t,t0.o0o.lnvc$(or: )kxy,$o you rcxlisticrlly cxpcct t() lct xrolrndSJ30,000r) $1J5,00(), r so . . . ( ' lcchni(tuc 2) Okiry, h:rtr)rnkeli clsc to nrc. ILDnr. i a rcal cstnteagcnlcirnrc n lrstcri8ht now with:r scri(nrs)(ycr who waswil l ing o givcy()rlthrt l l l $3J0,(x)0,r so,you'dprobnblyurn thrt dowr h uh?('Icclrlriquc#.J)Sellcr| o, t thispoint 'd ptobnblyikc it iust o bc (knrcwirh r.lnvcstor:Surc, I undcrstand. cas see, 6 pcrccnt ol$33o,ooo s . . . Iling on x second, t's bccDa long day i)r nrc:6 pe(cn. of S100,{)u) ! $6,U)O, o 6 pcrcentof S300,{X)0s

$ 8,Oo0; . . ind thcn 6 perccritof $3o,o00s hmm. . . (Noticeyou'rc pllryiqi dumb Saio ind doing lhc rnathvery sklwly-)


14/24

tJ4 MakiDg8ig ]toncy rnvcsting n l{c!l Eslarc

Seller: Ihat's $1,80O.Invc$tor: Oh, thankr. Let's sec, $18,000plus $1,800 is just

about $20,000 of commission. Okay, so bottom linc you'd begcltinli $310,000 out ol it. Okiry, thnt makcs sense.l)id you noticc how comfbrtxblc it ltlt lo take the scllcr' s ask-

ing price of $350,O0O Dd urn it into S310,000?You didrr't havc tokick, c lub, or scrcn'r i .You sinply us( l thesc Lrec teclr , r iqucsnturn t() gct thc sellcr's pricc $40,OO0()wer Lct's tio throutih dlchlccl lniquc n lhc ordcr thr t you wil l bc using hem.

llcst I'ricc 'l'cchnlquc Ooc: "Wha( Did YouRe..llstlc.tl l! F,xpcct to Get?"

L(x)k r t hc scl lcr with thxl insidcrgl int in your cyc lh:r t s, rys," l lcy, comc on now. Wc both know t l)al you nr ight bc askir) l . i$J5o,{)Oo i)r thc propcrly, b!|t you &nr't rc:rlly cxpcct ro gct rhnrnlLrch lo you?"' Ihis ( lucst i( )nwil l usui l ly gcl thc pr icc d()wnby 3pcrccnt &) 10 Pcfccn(.Whxt hnppc'rs f thc scl lcr ( locsD't orrc dowi xt nl l?At l l l ispoint you d()n't fight with hinr ()r hcr nboua t. You hr\,cn'( k)st xny-thiog by nsking,alrdyou sl i l l luvc two rnolc tcchtr iqlcs o usc.

Bcst Pricc Techniquc I'wo: Thc Ra[gc Tcchnique-l'urn wlxtvcr the lowcst [umbcf the scllcrgivcs to you xbout

thc pr icc iol{ ) n ranl lc with thcir nlnrbcr rs thc high cnd of thcran8c. ll'rhc sellcr doesn'r obicct, hc h:ls,usl icccptcd the low endofthe rangc {s the ncw point from which yolr rvill Drgotirte. ID ourcxrmplc:rbovc, wc xskcd lhc scllcr, "So you rsdisticnlly cxpect 1ogct around $310,000 to $al5,OO0, or so? " 'lhis is a qucstion. butnot o'1c you wanl to have thc scllcf answer. You simply slaac he


15/24

I / 21 Nr8ori.rinF ltchniqu(s to cct LI|eUrs( Jsl Possrblc 135question, nodding your hcad up and down, ycs, thcn move on toyour next question a few scconds Intcr, Bccauscyou &)n1 want thesel lcr to obiect , y()u ir6t do 't give rhenr much t inc io which tovoicc thcir object ion.

It's importxnt hcre t() ood yo(rhcad up and down:rnd give ()utitll the nonverbil cucs that you llrc agrccing with llre scllcr cventhouSh you xrc subtly chitDl3iDg hcir ltnswcr io :t wily rhxl fits lbryou.

As for lhc rimgc t{) usc, lhis will dq)cnd ()n y()ur l()cnl rexl cs-txtc n)arkct.lfyou irrc in l slow nr rkct, bc xSlires$ivcn y{r rch{)icc() l opcning rxngcs. Il you lrc itrvcsting in :. hor mtrkct, usc sDtllcroPcning r:rngc.lf lhc $cucr doc$ objcct lo your rrhge and sayssonlctlting likc,"No, nol 1i330,000 o $340,000 brr $315,000 o $140,(X)0," orlrc$pond:r$ lbllows: 'Oh, $J.J.t,O00 o $:t35,0{)0.Okry." No(icc y()uh{vc iusashrunk thc rirnLc you usc in rcsponsc to thc scl lcr's ()biccliur. l his lcts you tcst rhc wxtcr aDd iDd or( whcr(, tltc sctlcr's rcxllinri(s xfij. Y()$ciln shrink t(,rtr ritngc two or thrcc timcs until y()rrliDd lhc poiDr thnt thc scllcr is c()mfortitblc with.

llcst lrrlcc 'l'cchnlquc 'l'h rcc: Introducc a IlctltlousSuycf through a ltcal l]{itatc Agcnt to Hclp Knock3 P(rccnl to 6 |tcrccnt Off thc t riccThis onc is scll-cvidcnt. lt thc rcllcr w{}uld xcccpl :rD olTcrthrough i real cstatc lgcnt, hc would h:lve t() pay thc c{)onnission ()thc rcal cstarc agent.So, csscncc, he is slyinS the price would belowcrby 3 pcrcent t() 6 pclccnt to covcr the coDDlission. Son]c sellcrs will point out that they would be willing !o pl|y for x buycr's18,cnt omD, ssi{)nbut not lbr { listing comNissio[, ln dtis casc, hcyxrc saying that they arc williDg t() knock 3 pcrcenl ofr'tlrc purchas

Dfice.


16/24

136 Mrking lJls Moncy hvcstjng iu Rc!l l ls(rtc'l wo key P()intswith Lhis cchnique rte lbr you to use the ncg.ativc phansinga.s hown in the cxample and to make $ureyou do thc

math $lowly to ensure thc sellcr leelr comfortable witl'! thc finalSo whcn )'ou ve uscd thc$c drrec tcchniques to talk the scller'spricc trom S35O,O00 own lo $J10,{)0O,does rhis nrxke S:ll0,U)0thc l in l l pr ice?No, i t s inlply mcans ha( $31O,0O0s thc slxr t int l

Point ofwhit thc scllcr wirnts. If you xrc writing notes on i scriltchpxd iD fronl of thc scllr, ft) rot writc any Drnrrbcr bwn ,,nrr7yorll tct t i ) (his numbcr.Thcn whcn you writc this nuntbcf down, yoirrc lcSilinrizing it rs tlle 'top &tlxr" pricc. Dcpcnding on thc tcrnrsyolr ncgot i i l lc j ()u r1ay o:rhcnd nd givc drc sel lcf this ()p dol lnrPricc, ()r F)u migh( fccl thirt y{)u still [cc(l t() ncgotilltc thir, k)wcr.Al (hc vcry lc ist , you hxvc usl lc{ lncd how to sinrply nd ct$i lygctlhc pricc d()wn by lrl lcrNt Jpcrccnl (() lO pcrccna or morc ft( )nr thc(, r i8inul skingpr icc-

Sclfcr Obic.ction O'rcj lVhdt's Y.t.,r.Prograrr,?Whilc lhis iSht not $ccnr ikc xn objcc(ion, it is ll subtlc onc.

What ihc scller is rcrlly saying is, '(--onrcon, Mr. Invcsr()r, cll mcwhat you crD offcr mc so I cnD nr:rkc I slr:|p dccision il l $houldspcnd rDy linrc with you ()r not,"

llcr's cxactly how you sltould nnswcr thi$ qucstion:Pft)granr? {lon t hxvc r program. I guessmy pft}8rnm is

rc nrc! with propcrry owncrs and talk with thcm. If I c,tn buylbcir property in a wny thcy fcl is a lit itnd I fccl I cxn turn aptofit on it thcn I buy it. If not, thcn I don't buy it. Do I necdto bavc a fancy progritm to buy thilr propcrly?

'l'hc Fbur Most Common scllr Obicctions and IIowto Handle l'hcm


17/24

l / 2l NcSotiatinStclniqucs ro Gct rhc ncsrDcal ossiblr ta7Sce how you arc relirminl i the ncgotilltion in a way thrt thc

sclleaknows you ffe thcre t() listcn to their mceds lfld to see f youctn both mect their,rccds lnd nrrke ll prolit too.'l'hiswill go x lonliwxy lo ltctting thc scller to ll.ork rzirl, you radrer thin ag:rinstyouin (hc neSot ial ion.

Scllcr Obrcctlon 'lwot Are You .. RaolEslate Age r?A8:rin, dris one migbt not sound likc an objection, but in most

ca$cs t is. lh is obicct ior typicxl ly (onre$when you cxl l up thcscllcr on thc tclcphone. Y()n scc, nrcst scllcrs who rrc sellinS l:orSalc ly ()wncr 8et fk)odcd by c.rlls run) r{lcnts k)okinli t() list thcptopefty. ' fhescscl lcr 's uickly crrn thc (r '1ly clcnsc o th(sc cr l lsis t() quicklv scrccn ()ut thc calls Iionr xgcnts lionr thc crll$ fronrci ir 'cctbuycrs. Scl lcrs , ) i l rk i ,T hcsc concrctc rcrms. ( :x l lcrs :r rclabclcd ciahcr "buycnr" ()r''xltcD(li " M()st scllsfs sinrply (k]|l't h;rvcolhcr c i lc l lor ics br l)copl( who clt l lxbol l t l lc ir propcr y. Y()uDccdto orakc surc you cnd up iD thc buycr cttcti()ry.l i (c xre not sayi0g hrt rcr l cstr tc lgcnts rfc 'r ' l provi( l in l l Ngrcirt scrvicc out lbcrc.'l-hcy ovcrwhclnringly irc. It's iust n pcrccp'tioD thrl nlxny scllcrs havc, llcDrcmbcr, r(al cstirtc rl.lc'rls rc t l.llcltrcsourcc lor any scrious invcsa()r o axp nto. l]) 's why, in ()rrr initbook, wc detxi ledhow yolr cat) cf fcct ivcly work wjf l t rc i t l estr tcagcDls o y()rrrDrmuxlbcnclil. As nn iDvcstor, you nced t() nrlkc srrcyou don' l gct sorted nto this 'out" brskcl ak[8 with thc. lgcDls.'lhc singlc nrost cfltctivc wuy to respond to this obicct.i()n s (()siot-ply !Dswcr as lbllows:

Scllef: Arc ),ou a real cstate ltgent?Invcstor: No, do I nced to be?(Said ioridly as fyou wcrc: raid the sellcr werc oot li,oingto sel l to y()u unlcss you *,ercnn agent.)


18/24

r3rl Mnkin8lliS trkrrcy lnvcsting r llcalEsiltcScller No, no you don'l birve () bc. Il's just that I keep get_

ting xll thcse calls frcm real estatc agcots iryirrg to get a listingon tl)i s bouse, x,rd I' gettih{an bit tired ()1 t, thxfs all.' l l l is resloDse nstant ly ef irmcs thc scl lcr 's tbel ofyou.tnd

puls vou in the Prcfcrrcd cxtegoty oI"buyer" Wh:lt ifyou:rrc ll rcalcstirlc :rgcDt?You l|nliwcr lhc sellcr's q[cstjon as itlowsllDvcstor (who in tlris cirsehas x tcal cstxtc licctrse)r Actu.

xlly, I nm xn agcrlt, bnt I rvirs Dlercstcd in maybc buyinli thisl) f ( )Pcrtyns an invcsl,neDl.Y()uDrobxbly would Dcvc, cvcn()nsidcr iln ollcr fronr :ln invcstor, cvcn if it was aD rtlrxctivcol lcr , $()uld you?,\gxin, yo nccd 1() uickly get ()r . r l) l rhc rgcDt cl lc l :ory and

licl thc scllcr to Pcrccivc y()u rs l brrycr,

Scllcr Obicction 'l'hrcc: 'l'hc Attomcy Obicction'l'his objcctior tcnds to bc thc onc ilrvcstors d,-cr(l thc nrost.'l-hcyknow llr:|t nriny i(tr)r Dcyswill kill xrry(lcxl lhat is crcrtivc nrrdrronstrrdard. l l you ncg,ot i i tcd r l)urchascOPtiol l dcal 1tnclhc

scllcr t;tkcs rhc papcrwork to thcir xrtorrrcy, nr:rDyut(()rneys willl i . i l l hc ( lcalsi , r )ply ccrusc hcy l t fcn' t rcxl lamil inrwith nonst1lndard fclrl cstatc lfirnsnctions.

IIcrc is llrc most eltcctivc wiry $,c brvc li)uod to dcnl with thcilttorncy objecti()n. 'l'his ft'sp()nscco'ncs in threc stePs:

Stcp One. vnlidatc the scllcr's choicc to hxve thcir a(tomcychcck tl rinl!{ over an(l n)xtch thcir nccd tr) do thcir due diligcDce.

Sellcr: I ll nced to ru|l this by my rltorDcy.Investor: ()f.'ourse you r('ill.'l'hat makes !ood scnsc. ftisv.lidatcs their need to ralk wirh lheir attorney.) I rlso nccd to


19/24

J/ .2t:lcaoriat'trg tchnlqucsto Ccr rlrc BcstDl Po$'hlc t f9

do my duc dili8cnce. I hlvc to chcck on thc propcrty valucsand to double{hcck R) mxkc $ure you:rrc on tiale and all (hat.(This matchcs thcir Dccdqith your nced to bc prudcnt and dotheir due dilige cc.)Step'l'wo. Pncc their nttorney's rcirction so you progranr thc

scllcr to sayycs evcD l thcir rttorncy sirysDo,lnvc$(or: lfut bcf(xc you $pcnd tl)c $.i00 to 500 to llnvcyourittorncy chcck thisovcr (yo[ irrcpoi|rlinS our thrt it woD't

bc licc to gct thcir il(lor'ncy'sopiDiur-ii will havc.r hcfiy priccti8), I wrni t() nri*c srrrc thlt you'rc spcnding your nroncywcll. I ciln guafilntcc you lhll your i|ltorrrcy is not going 1() ikcthc fxct lhlt you ilrc rgrccinlt to thc price up fr()Irl rrt todrry svahc,rrrd Dot ch rging sI It|lurc valuc. I c's goin8, () kick rodscrcxm nnd nrxyl)c cvcn th()w { fcw books:rcross thc roonr.(Y)u rrc wdkiDg thcnl tlrftru8,hhow thciratbnrcy firighr rcirct.()l-c(,urtc, no rcxl xt()rncy will cvcr rcilc( (luilc so strongly. S()il won'l bc rs big ol :r dcrl il thcir rtlorDcy has a strong slrtc-mcnt or lwo:rb()Ut thc dci l . ) N()w, you u[dcrst : rnd th: l( wc[ccd to bc rblc lo h:rvc hc optioD t() buy xt thc pricc wc igrccdot bcciusc lls nvcs(oni wc hxve t(, mrkc il prolit or wc crrr'( dothc dca!.Now, fwhcD youf Lt lorncy as ti t : lboul his,whichhc will, you'rc not Boing to wrnt to nr()ve ()rwaftl wirh thisdcxl, rhcn I wrnt to si lvcyo t lrc $400or $500 hi l y()ufaLt tof-ncy is going tr) chnqic y()u, nrrd wc cn|l iust cxnccl lbis irBrcc.mcnt right oow. What should wc do? Should wc calrccl .hisdciLlright now or slDuld wc kccp moving forwird?

Sellcr: Oh no, lct'$ kccp moving forw;rrd widr rhis. I ir$awould flcl betrcr to have my altorney t,.rkea look nt the pnper-work wlren wc'[c done, that'$ xll.h thc cxamplc above, wtj wcre talking ab()ut a lcase opti()ndcal. If we wcrc talking about buying lhe prupcray srbiect to thc ex.


20/24

140 ]!':rkinBBig l,loDcy nvcsting n Rca l israte

islioli financing you might inslead sa.v,You'rc attomey is Soing tohile die filct lhat wc're lcrving your lorn in fhce for a while. Iirt]'ou undcrstand thal onc ol drc rcasonswe'rc willingto make up thcfbur bxck pnymcnl.sxnd lake ovcr thc monthly payment is bccauscof(hc lo$, intcrest r:rtc lollo you hxvc in pl:rce. f we hxd to bri S inour ()wn k)rn, we would not gct snch a g()od nlcrest rale Ph$ wc'dh:rvcabout lt.1,000 n lorD costs. l'h:lt wolld kill thc dcrrl or us."

Step ' l hrcc. Sjgn upthc dc^l s! . tbjecl o their i r t torncy's'l hc linal thing you nccd k) do is () siSn up thc (lcal subicclto" t l rc ir ' l l torney'$ cvicw I Ic lc i s how (l1c lrusc sholr l( l cx( l l

'Ihls agt'eenetrl ls sublecl lo scller's u.tbr ay's rculcllt.In lhe (uerlt lhal scllcr's atlk)t'rrc_l ' tunts k) catnarl his 48recmenL sel[et s ctlkrt c.ym(ly c.utccl Lhis qreentcnl b. l Sioing&rill,cn ,lolicc k) . ]n crc l lhul utrille,tolit.' lt ' (4rrccl ir n't liu?tr by 5 t'M tr!lIrcn lhls ugrccmenl sh.lll tcnai ln.lullJbrcc .!.n.1 ./Jecl.Not icc lhat you makc this c lxusc rcrd thal thc scl lcr hns dc-

cklcd t():rcccpt ahc oll-cr xnd nru$t takc il dcliDitc stcp withi ir lim-itcd pcriod of tin)c to cxnccl (hc dcnl. I'his drlnrllicxlly incrcascsthc oclds hxt yorf lrxve r Llclrlbcci\rrsc narclio, o[ lhcir part rcsLrltsiD x pcrnr;rnent dcill.

' lk wr_v fuclxbout t is l lat i f lhc scl l cr sn wil l ing to siLr up thedcxl \*,ith lLe right to c:tnccl ilicr tilking with thcir rttorncy, thcnthey probrbly don't wml to &) the dcrl. I would r.rtircr know thisup ltont beforc I invcst nny m()[c of my timc wilh thcnr. I lct thcmgivc mc lotice by f:rxing mc a slrort leltsr. lhis makcs them llel


21/24

3 / 2J N.Sotiatins tcchdqrcs ro Gct fte lt.sr Dl lbssiblc t4l

nrore omfortablehat t won't be oohard br thcm o cancel l'dreywant (),but t still rcquircs hat hey lo t in writing. r

Sellcr Obicction Fouft Thc Scller Wants a LargeDown PaymcntNothing will flrin your (lAy nlitcr thiu sellcrs who insist (hrt

y()u nccd (o p:ry thcnr a d()wn prynrcnl. Now, s(,nrcsclleni wor'r'(bud8c ftom lDis, and thcrc i$ nothing you crn do. lipicnlly , thcsc$cllcrs rst arcn a nx,tivatcd to scll (lrickly. Rrlt nx)st modvatc(l scll'crs:r.c willing to lt&c tl kx lc:ii moncy up front lhan they initiallyarsk or,

I Ic lr j i r rc wo wxys to hi lndlc his obj cct ion. '1hc f irst is u scdwhcD yr)u 1rcncgolilting I lcxsc olr(ion,

Scl lcr : nl wi l l inS t() b this ivc-ycxr c iNc )pt iur , but l 'n lgoinS t(' nc(d :rd()wn pxynrcot () f $l{),OU) t() do i(.lDvcstor: I undcl-rilirnd lrat you nccd $onrcmoncy lrp li()||t

so tl t you crD llcl sccurc in thi$ dcxl,'l'hxt sccms rcl|"\onltblctr ) l rc. l you wcrc iusl rcnt iDgou( this propclty, whxt w()uklyou col lccl rs I sccur i tydcposit?Scllcr I d (r)llcct xt lcxsr 5l,4OOrs x hsl nronrh's rcnl.

Invcslor: Oh, thilt much. Wcll, if I could l:rlk my par(ncrinto i l , wh:r t f l wcrc t ( )givc you $2,t100 p l i ( )nt . ' fh 's r I r l lnlo[lh's rcnt plus x hclty sccurity dcposit.

Scllcr: l'd 'rccd nr()rc luD thar.Invesfor: Oh. Wcll, again my p:l(tncr miSht kill mc lbr ol:Itring this nruch, bur what if we Bavc'you S3,40Oup fiont.Thnt's { ful l mon$'s re|lt and a $2,00(] security dcposit. I kn()wthat's not ideal for you but I'm bcndinS as farrs I can. Wouldyou bc willing to bcnd n litde hcre !x)?

Scllcr: Surc, I gucss thnt would be okay with nlc.


22/24

r42 lunkinSUiS toncy ltrrrsting in RcalEstrtcYour response refrained thc selle.'s request for down payment

into then) sharing wjth you thcir necd to fccl secure in lhe deal.lrom herc, i t w:rs,ust a short hop to talk ing about a secur itydeposil. l{cmembcr, il you |ue t{lking with thc sellcr about downpirymeDls yorr can only lose. convention say$ h:rt down Paynrntsby invcslors t te bctween I0 perccnt () 20 pcrcent. You nced toshif( thc convcrsatiorr to sccurily dq)osits wherc convcntion saysyou (Jrly ncc(l LoSivc the scllcr % to l/, prccnt qp front.'l'his iswhy wc strcss thaa you nccd to cootrol l|ow you Lrbcl thc vari(xrsPrrts in thc ncgotirtbn.

Usc the sccood $,ay whcn you xLrc ego(i:rting itny other lypeol-oer'ner'ca rry dcxl.Scllcr: l n) willing &) qrrry birck thc ljnnncinS ll5 bnla:rs

yo( llivc nrc l0 Pc.ccnl down which is Xi20,000.Invcstofl | uDdcrstnDd our nccd t() Lct :r hcnlthy chunl ofmoncy up lioDt to nrai(c$ulc you lccl sccutc in thc dcal, lJut tobc lcurk, silly xs t sccms, I crn :rclrnlly buy four or fivc lro(Ncswilh thc sxmc ! i20,000. 'nl wi l l ing to givc you iLchunk ol:nx)ncy up front t() slrow y()u I nrciln busiress :urd s{)yolr cxDflcl sccufc, l)u1 nccd to bc olxking a snrart irvc$tmcnt mysclf.Ynr undcrstrD(l rhal, don t you? I wxnt to bc fair hcrc, but Il1ccd() bc ftlir to l)rysclf too.

Sellcr: Ycirh, I undcrstxnd. l.ook, if you arc willin{i to ll,ivcn]c thc 1\r l l$200,000pr ice wc wclc t l l l l ( ingnboutenr l icrwithS O,0O0down wc luvc a dcxl.

l,rvcslor: Oh, so bxsically as ong as I rgrec t() get closc toyour $200,0O0 pr icc you'rc okny wirh gett ing $5,0O0 o$10,000 p fror t . (Nol icc you iust uscd he lnngc tcchniquc-lwice-oncc on thc $200,000 pricc a|rd oncc on thc $10,(J0Odowlr payment. Seehow casy hiri is?)

Scllcr: I couldn't do $5,t)00 down; I mi{lht go 1|s ow :rs$t|,OOo own, il you agrec to thc $2Oo,0O0 rice.


23/24

I 2{ NrEUliruI I f (L|nrquc. l ' , G(r lhc ln -l D( l fo\ . ih l (

Invcstor: C)h,$() l l agrcc (o thc Iull S200,000pricc you'dbc opclr to 56,000 t() S8,0OO p lron(.

Scl lcr : didn't sxy$6,000; said S8,(X)O.Invcstor: Oh, !7,OOOo ${i,OoO.)kay.Sellcr: I gucs$ eould livc with 5ZOO0, lut I culrldn t txkc

Scc how you usc(l whirr y()r irre cxrning in tl)is bo()k to gcl lh()Fn p:ryme|rt ront lO pcrccnt irll thc wny down lo J.5 percc t? ll'you in( l(hc r iglr t cnl l | ! l )uycr,you wil l pr 'obal) ly el nx)st , l uot ul l ,

ol th is nr()ncy )ack lhnrr y{)ur cnrnt-b ycr's opti(nr Pxymcnt!( ) r rcol our s l ( lcnls, jhcryl, wxs ncl. lot ir l inS r x smxllh() ! rscrvi lh x sr l lc l wh() s: l idhc w()uldhc wil l ing to cnrry bxck hc I inuncing. lc suid ){ :would crrry:r l i '1\ tnnr. tgr8ens k) l lg xs shc ciorc ir lrv i th SlO,(XX) ()wr. ( ihcryl f i jspo|rd! . t l hat l ihc ccr lx inly t |ndcr '$(x,d hi I ' tccd l( , l tct : r ( lown prynrcnt s()hc would lc( l s(crrrc r llhc ( lr : r l . lu l lo bc l i rnk, with lhxt s:rnrc lO,(X) l) hc coul( lg() )ulrnd b(v thr!"c or ti)rrr lx)uscs nd rrr{kc r nruch bcttcr (xtc ()l rrlufll(xr hcr nxnlcy. l hc scl lcr sr id hc Undcrsl(x,( l l rat rn( l crnrc l) ick. lnd si l id hc w()uld rkcd:r l l ( rs l $2,500&rwn!( ihcryl kcpt hcr c(x) l nd rcrncrrr l) ( rcd () pl iry lhc rcluclunlhuycr.And slrccr lnr ly rcccp(cd his ol l i ' r ( , f buying hc pr()pcr ly i) ri i 155,(X)0-wilhS2,5(X) Jwn in( l (hc owncr cxrryi |rg )rck thc buf: rnce r$u f i | l i l m d ll . i r l . tc i lh inlcr(st rt 4.72 pcrccnl.

Chcryl lxtcr fcsol( l l lc propcrty on x r( lr t to-()wn ) ir r is | | rdnradc I nicc cxsh l-low lionl thc sprc:ld l)clwecn her prynrc,)ls rD(lthc rcDt for lhc phcc. Slrc xlsl) sr)ld ir lbr S22.(X)0nx)rc thxD sh(pilid for ia-And thc fiDal pxrl () thc dcrl wrs lh:rt sllc :rlso collcctsd$5.OOooption monry lrorrr hcr tcnaDt-buycr up froot, so this wrsrcxlly x n(rthiDg-downdc:rl fbr hcr-

S() herc you h;rvc thc f()ur D()st cr)nrnon scllcr obiccti{)ns rDdhow to hilndlc rhc . Re r(nrl)cr thnt nost sellcr obtections :rr trs(thcir wxy ofsxying lhc)' fccl x bir uDconrf()rtablc. lsc this is a sigDxlto sklw things down, go brck ovcr things, and makc surc you: lrc


24/24

141 lztiry AB Uor|GyhrdinA tn ttlrt tb&rc

continually bulldlng your lcvcl of rapport with thc seller. If the8llcr fcls conrfoft4ble wlth you, then you will havc c much bettcfchancc of picking op thc dal. Mo$t sellcr obiectlods mclr awrywhel sellers fcel a seDscof emotlon4l conncctlon stth you, thcinve$or. S'o cam ao build this (lnrrccdon-

Negottattng Wrap UpYou've ,ust leamcd 23 $peclfic techniqucc to hclp you get thc

bcsr dc.l pocslble. Remcmbcr, dl of these technlqucs wort bcstwhen you arc rblc to establish an emotioo.l connccdon wfuh thc$cllc'r.Al9o, t trkesprdctice o putthesencwtcch[iques into actlon.Repctitlon ir thc bc$ wly foi you to hrcrtrgllrc lhcse ncgorhtingattltudc's and lmSu.ge pdncros. thc froyoff irswonh thc ttrnc .ndcffort to mas&:rd|cs sraataglcs.Ovtji thc ycatr, our rtudcnts h4vcwed thcm to buy, 3|rLl,and lc.sc optloo o!r St(X) mtllior! worth oftc.l csht. 'llEy wlll wo.* for yoq too.

23 negotiating techniques

Documents