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H IGH -P OWERED R EAL E ST A TE T ECHNIQUES

Now let me tell you what negotiation is not:

•It is not a science (all the key concepts are abstract).
•It is not a problem which has a right or wrong answer.
•It is not a situation in which winning is everything.
•It is not an event with continuity.

THE GOALS AT THE START OF ANY NEGOTIATION

The ultimate goal of a negotiation, especially a real estate negotia-
tion is to profit from it. But there are several forms of profit. Of
course, the first one is monetary, such as a better price or interest
rate. But there can be other valuable outcomes to a negotiation, such
as acquiring knowledge about a property. More subtly, often the par-
ties in a transaction also have the unconscious goal of obtaining sat-
isfaction from a negotiation and feeling good about the outcome, or
at least not losing face. This is another form of “profit” that you want
your opponent to feel they have earned.
However, at the beginning of a negotiation, real estate in-
vestors (or anyone in a negotiation) should focus on the following
immediategoals:

• Learn the other side’s position. If we learn what the other parties
want we can attempt to structure a transaction that meets their
needs. There is always a reason or reasons why the other side is
willing to consider doing a deal. If you “find the story” of what
they really want and think is important, you can address their
concerns.
• Understand the constraints surrounding the transaction. Every
transaction has some controlling factors such as a time frame,
competing offers, tax implications, or required approvals. If you
learn what they are you can use them to your advantage.

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