Here are Powerful Tips for Your Next Negotiation
Overcoming obstacles to close deals as a CRE expert comes from years of experience – but you can learn it in 20 minutes.
When you come to an impasse in a negotiation, do you become overly persistent on a sticking point? Or do you pause, take a few minutes, and think about assessing your best alternative to a negotiated agreement (BATNA)?
I learned about BATNA while attending Getting to Yes: Negotiating Agreement Without Giving In at Harvard’s Program on Negotiation (PON). BATNA is all about knowing your options, what assumptions you’ve made about the other party, and how to walk away from a subpar agreement confident in your decision.
After attending my second course at the PON, (they love slow learners like me), I developed The Prepared to Win-Win™ Negotiation Worksheet. After using it a few times, I found the results surprising and exciting. The negotiation had none of the usual friction that I’d grown accustomed to over the past 25 years in commercial real estate. Using the P2WW, after the negotiations were complete, my clients were pleased with the progress, and one even remarked that it was “fun.” Deciding on the various deal points was easy for my clients because they could anticipate the other parties’ responses and were prepared for a counter-move.
More than ever, a deal isn’t a deal until the agreement is signed and the check is deposited. So many of my broker friends have bemoaned that in 2020 and 2021, they reach the goal line only to have their client decide to walk off the field. It’s just a consequence of the uncertain world in which we live.
Here are a few tips for staying flexible in your next real estate negotiation:
1. Don’t focus only on just the money. Instead, go point by point and compare different possibilities. You’ll find hidden gems to structure the transaction to make a win-win with the other side.
2. Brainstorm the full range of possibilities. First, assume the negotiation will fall apart, and then plan. Next, ask yourself what alternatives the other side might be considering. Finally, test your assumptions about the other side by asking yourself, “what will they do without a deal?”
3. Before any crucial negotiations, take 20 minutes to answer the prompts in The Cardinal Prepared to Win-Win™ Negotiation Worksheet. A thorough assessment of your interests and those of the other party will help you identify strong alternatives, generate novel proposals, and stimulate discussion at the table.
The Cardinal Prepared to Win-Win™ Negotiation Worksheet will…
1. Broaden your understanding of your leverage in a commercial real estate deal
2. Maximize your chances of getting a favorable result in any negotiation
3. Provide you with problem-solving negotiation techniques
4. Prompt you to brainstorm new ways of creating value
5. Manage the tension between the parties
6. Develop a relationship with the other party that will benefit you in the long term
Here is a plug for Cardinal’s consulting services: Many of the most efficient organizations do not hire in-house real estate managers. Instead, they engage an advisor such as Cardinal to assist with complex real estate negotiations allowing leaders to focus on their core missions. Click here to see how we can turn complexity into clarity for you.