With the market taking its holiday break, I thought I would share with you a ‘hot topic’, which many of you have raised with our team through the first half of 2003.

Negotiators negotiate record prices, others leave it to, or blame it on the market. At RWM, we’re constantly honing our negotiation skills, because we believe the market only sets the sale price parameters, negotiation determines the eventual sale price.

Let me share with you, a brief insight into our negotiation strategies, which have seen us achieve record prices for small apartments, right through to the three highest residential sale prices in Mosman.

Note: As a benchmark, may we establish that our opinion of value for a property is presented as accurately as possible. We do not inflate the value and always defend the real value of the property to prospective buyers. Underquoting will only succeed in lowering the price for genuine purchasers.

Our first premise relies on the assumption that buyers must be persuaded to first build an emotional attachment to a property, before they apply their rational analysis. We use a 20 point negotiation process, and apply the PEAK buyer segmentation model, which identifies techniques for dealing with the four basic types of human behavior.

A negotiation strategy applied to the wrong buyer profile, will negatively impact on an agent’s ability to build a genuine and valued relationship with each and every potential buyer. Here are the four key segments and as you read them, select which personality profile describes you.

PROGRESSIVE PEOPLE: Risk takers, innovative, daring, demand effeciency, will confront, direct, results oriented, high ego.
Prepare: to negotiate, brevity is the key, flatter, provide more options and less opinions, close confidently.

ENDURING: Shy, quiet, patient, traditional and family-oriented. Need time to think.
Must earn their trust. give full explanations, be personable. Need lots of visits – be patient.

ANALYTICAL: Conservative, suspicious, non-personal, avoids risks.
Do not rush, hard sell, exaggerate or threaten. Answer all questions before closing. Agree on next steps and deliver.

‘KAOTIC’: Creative thinkers, expressive, impulsive and undisciplined.
Support their dreams and aspirations, allow time for socializing. Don’t lose them in facts and data. When ready, close quickly, be enthusiastic.

Our twenty-point negotiation process is then applied to ensure we remain in control of the entire negotiation process.

We hope you achieve a record sale price for your property, when the time comes.

Here are four key questions that should determine whether or not your agent is a skilled negotiator:

1. What role do you believe the market will play in determining the eventual sale price for my property, versus your negotiation skills?

2. In your opinion, what makes you a skilled negotiator?

3. We must accept that buyers break down into different personality types. What formal processes do you adopt when segmenting buyers, to ensure you are communicating on their level

4. Can you list 20 points of skilled negotiation? eg. here are ten: Power, preparation, role reversal, courtesy, painting pictures, flinch, timing, concessions, terms, pride, everything is negotiable.

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