Dealmaking: Do the Different Thing in Transactions

If honing your negotiation skills is one of your New Year’s resolutions, consider the suggestion by one trainer: Do the counterintuitive thing to help move the transaction along.
Trainer Mira Zaslove, in an expanded article at lifestyle site Lifehacker.com based on a discussion at Quora.com, suggests that negotiations can actually move more quickly and smoothly when one side takes actions that give the other side a narrower, but perhaps more appealing, range of options.
In fact, Zaslove’s first warning is against providing too many options. “The paradox of choice dictates that the more choices you provide to someone the more they like aspects of each option. Therefore, they over-think and believe they can find the perfect solution,” she explains. By providing a small number of realistic alternatives, they can focus on the advantages and disadvantages of each and make their decision more quickly.
Zaslove also reminds negotiators against falling for a bluff. When the other side protests one of your moves and says they’re going to walk, it’s easy to backtrack and cave in. But, she says, “The more someone protests that the price is too high, and makes a fuss, generally the more wiggle room you have. Fear the quiet negotiator who isn’t concerned with how he appears.” When the other side is truly ready to walk, they’ve reached closure and express regrets; simply threatening to walk is a sign of anxiety.
By the same token, Zaslove says, your own bluffing can work against you. “If you are not clear about what you want, you are unlikely to get it. I’ve found that focusing on the outcome, and not on how you appear leads to successful outcomes. State what you want and focus only on your intended goal and not on your ego. Relay your position in a simple, straightforward, and confident way.”
Finally, don’t dwell on the time and money required to close the transaction. “Focus on deals that make sense, because time is your most valuable asset,” Zaslove says. “Do not spend time dwelling on the time and money you have already spent.” The more complicated a transaction becomes, the less likely you can close it quickly. Keep it simple.
Read the full article on Lifehacker, adapted from an earlier version on Quora.com.
By: Daily Real Estate News (REALTORMag)
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