News & Media

November 14, 2014

The power of negotiation

As the focus of our media turns to turns the events at the G20 in Brisbane I think it is a great demonstration of the delicate nuances but also the power and results that can be achieved through good negotiation.

Obviously at the G20 they're negotiating to identify common platforms on major world issues like climate change and trade agreements. When it comes to real estate the negotiation is usually focussed on the single issue of price, but that doesn’t mean the process is any less intense or important for those involved. The stakes can be high.

The key point to remember is that any negotiation involves both sides demonstrating a willingness to talk with the intention of trying to reach an outcome acceptable to both. 

When buying or selling a property that means knowing in advance how flexible you can be on your price but also giving consideration to other areas you can use to negotiate. For example can you offer an extended settlement or a quick settlement? The size of the deposit on a property is another sensitive issue that can be offered as a point of negotiation as can the inclusion of furniture and fixtures.

Talk through all possible options with your real estate agent before the negotiation begins. One common tactic in negotiating is not to place all your cards on the table upfront but it is important that you are open and honest with your agent so they can represent your interests with integrity during the process.

The most important point when entering a negotiation is to be clear on your boundaries before you start. Negotiations usually take place in a high pressure environment so you need to be confident enough in your decisions that you can hold firm as the pressure mounts.

Remember, most negotiations involve a compromise of some kind but with the right agent on your side and the right preparation you will be able to achieve the right outcome.