Mistake Number 1:
Wanting Something Too Much – If you give the impression that your life depends on getting that job, or car, or house, or business deal, you are in trouble. Once your counterpart gets a hint of your desperation, you’re dead. Remember, the person who cares least about the outcome always gets the best deal.
Mistake Number 2:
Believing Your Counterpart Has All The Power – This is rarely, if ever, true. Remember, all parties want something, or they wouldn’t be at the bargaining table. Ask yourself, “Why are they negotiating with me?’
Mistake Number 3:
Failing To Recognize Your Own Strengths – Always try to determine your negotiating strength before you sit down at the bargaining table. The key to assessing your strengths and weaknesses is to know where you stand. Information of this kind is the true power in any negotiation.
Mistake Number 4:
Getting Hung Up On One Issue – This is called fixed-mind negotiating. When our counterpart uses this approach it’s usually the old red-herring. When we fall into this pattern it is usually a pet-peeve. In any event, virtually no negotiation involves one and only one issue. If you think yours does, you’re making a big mistake.
Mistake Number 5:
Failing to See More Than One Option – Rarely do negotiations break down only one option. There are almost always several choices of action. Creativity is the key to avoiding the one-option mistake.
Mistake Number 6:
Adapting A Win-Lose Mentality – Mutual benefit is the name of the game when the pros negotiate. If both parties are not happy, then performance becomes the problem. Anyone can shake hands on a deal. Performance only follows if benefit is derived. Otherwise, one-sided renegotiation is the result. Not good!
Mistake Number 7:
Too Much Grinding – Negotiation is a skill and an art. Understanding and using tactics is relatively simple. The real distinction between the pro and the amateur is the judgment call to end the give-and-take and proceed to performance. That is the art.
Mistake Number 8:
Short Term Thinking – Some negotiators go for immediate pay offs, rather than seeking a long-term relationship. Long-term doesn’t necessarily mean over a lifetime. It can show up later in the same negotiation session. Be careful about grinding someone down on one point. They will get you back on another issue.
Mistake Number 9:
Accepting Opinions, Feelings and Statements as Facts – “Our client would never agree to a proposal such as this.” “We don’t feel we can pay more than $1000 for your product.” “Our budget doesn’t provide for an additional installation fee.” An opinion, a feeling, and a statement: none are facts. Don’t be fooled.
Mistake Number 10:
Accepting Firm Positions – This is our final offer. Everyone who has any level of experience has said this and then made another offer. Don’t buy it!
And thank you for making me Your Orange County Real Estate Connection.
Michael Caruso, Broker ABR ABRM CLHMS CRB CRS GREEN GRI
Past President, Orange County Association of Realtors (949) 753-7900