Commercial Property Negotiation – 3 Stages of Rejection in Negotiation

In commercial real estate sales and leasing, the real estate agent negotiates every day with different people and different situations. Your skill in the negotiation process will improve over time, although it can be significantly fast tracked through simple daily practice.

Most the property negotiations have some degree of challenge such as:

  • The fees are too high for the property owner
  • The marketing funds are more than what the client will pay
  • The type of agency is not what the client wants to accept
  • The timing of the deal is difficult
  • The price or rent being offered is unacceptable
  • The parties to the deal just don’t get on
  • The key elements of the property do not fully satisfy the parties

Given that every deal is going to have some hurdle to negotiate through, the best real estate salespeople become the excellent negotiators. You can do that as well.

In most property situations, the parties to the transaction want to have some simple benefit or win in the process. It is up to the salesperson to reach that point. Every negotiation starts somewhere and it is up to you to start it.

The three stages of negotiation are typically as follows:

  1. The parties will tell you that they are interested in the property but something is wrong and is holding them back
  2. A series of problems will be tabled by the negotiating parties
  3. The parties will tell you what solutions they see as acceptable

In most property negotiations, the parties will move through these three stages; that process is really what you want and you will require in achieving an outcome. When they give you some solutions that they will be happy with you have something to work on.

The best property negotiators will move the parties from item 1, to item 3. The way to make them work through the stages, is to ask directed questions surrounding their ideas and feedback. Here are some examples of open questions you can use in the property negotiation processes:

  • Tell me, what are the fees that you see appropriate for taking the property to market?
  • Mr. Brown, what are the hurdles that you see given your individual property circumstances at this time?
  • Mr. Brown, if the price was not a hurdle for you now, how would you proceed with the contract process today?
  • Tell me, what are the elements of the property that you really should have and that work for you?
  • What adjustment can we create in the offer which will improve or remove these challenges for you?

There are many variations to the negotiating and questioning process. Importantly, the three stages above should be respected and moved through to get momentum and focus on a positive negotiation outcome.

Negotiation Tips – Apply These Tips on Negotiation and Prosper

I took hours out of my day to share these negotiation tips with you, and I while I hope you appreciate the effort, I hope more that you APPLY these principles and tips on negotiation (just not if you ever negotiate with ME ;) ). Either way… maybe I will just go ahead and save the best few tips on negotiation for myself…But here’s a few of the many great negotiation tips I’ve learned and observed, as well as used and had used on me.

Negotiation Tips

16. He who mentions numbers first loses.

17. After a long negotiation if and when you push too hard and they come back with “At this time we have decided to disengage from any further negotiations with you on this deal”…I learned the hard way that you can ONLY regain the upper hand if you don’t respond at all. At ALL. Don’t do it. Put the phone down. Don’t hit send on that email. Give the stamps a break. Wait. Just let it simmer.

18. Use what negotiation tactics people use on you to get better. For instance, use “At this time we have decided to disengage from any further negotiations with you on this deal”- unless they read this post they won’t no how to deal with it. If they need the deal more than you do, they will acquiesce and come back to the table willing to give you more.

19. Storm out of the room. In a controlled manner. Don’t actually be mad. If you’re mad you’ve lost control. Don’t lose control, just let them know that something was so unacceptable you would rather be gone than consider it.

20. If you slam a shoe down on the table, make sure you’re still wearing two shoes (or it will looked contrived). Yes, that’s a famous negotiation tip and one many will remember being used by the Soviet leader Kruschev on the world stage

21. Don’t try to be someone you’re not. There are different negotiation styles. Find yours by trial and error. Not all of these negotiation tips will be best for you. Some are me, others are not, find what works for you.

22. Team up with someone who complements your negotiating style; they call it good cop bad cop for a reason. Two good cops don’t push hard enough and two bad cops push too hard.

23. Control your body language. This is one of the simplest tips on negotiation to mention, but one of the hardest to explain. And even harder to master. But it’s that much more powerful if you can, because so few can truly do it.

24. Watch their eyes. The eyes are windows to the soul.

25. Learn to use leading questions, that prompt the other person to give the response(s) you’re looking for.

26. Tell them what’s going to happen next: “here’s what we’re going to do…”

27. Understand Ziff’s Principle of Effort (when someone has time invested into a deal in a considerable amount they will work harder- i.e. give more to you– than risk losing the deal)

28. Use the salami technique. Get what you want in small, incremental slices.

29. Be the first to put it on paper. You control the language. It’s what’s on paper that will matter most in the end.

30. If they want to use their contract, let them! We will use my addendums. ADDENDUMS SUPERSEDE THE MAIN AGREEMENT.

Are You Presentable From All Sides? The Art Of Building A Trade Show Display In The Round

You’re used to analyzing your trade show display from the front. You can hide many things in back, like a disorganized pile of literature or a staff schedule. Yet this kind of design makes a very important assumption: that you’ll be able to put it against a wall and that three of the four sides will be enclosed. While space allotment often works out such that those conditions apply, there are many venues where the design permits, or even favors, trade show displays that can be viewed from any angle.

A Trade Show Exhibit Inspired By Theatre In The Round

For many years, some of the most artistic and innovative theatre companies have been putting on performances in the round. In the round means that there is no ‘back’ to the stage; your audience is all around, so you have to be certain that you’re always presenting an appealing visual from every side of the stage. This becomes even more complicated because the design must be a good setting for the telling of a story.

Remembering the roots of the total visibility trade show exhibit often helps first-time designers with their initial conceptualization. Your information is like the plot of the play, unfolding against the backdrop of your trade show displays. When you have the unit out in the open, the stakes of good display practice are higher, but there’s a lot more potential reward as well. Like the set designer for a major production, you must always remember that you’re promoting a product or the unit itself can take over.

Square Or Round Trade Show Display?

The first choice you will make will be to decide what shape you’d like the unit to take. Theoretically (and budget permitting), you could make it any shape you desire. Some of the companies with the largest budgets will create highly personalized shapes that further represent their company or offer particular advantage for showcasing their products. While this might be a good option for your next trade show display, your first exhibit in the round can be a bit more simplistic. Simply decide whether you’d like the strength and hardness of a squared-off unit, or the curved form of a circular version. Like with so many other questions, there isn’t a wrong answer; it’s simply a matter of which you feel best suits your company.

Remember That Your Trade Show Exhibits Have No Back

Whenever you design one object for an exhibit, you need to plan what will be put in back of it. When you have true total visibility, people will literally see things from every angle. If you’ve chosen to put a sign high above your exhibit, you need to think about how you’ll hide the supports so people passing on the other side can read it as well. In some cases, adjusting for this is as simple as creating a mirror image of the front on the backside. In other cases, it can be much more difficult. One way or the other, the key to success here is to simply plan out all sides of the unit and its components.

Creating a cohesive and visually dynamic freestanding display is an art that takes time and practice to master. Once you have some experience under your belt, you’ll have a substantial advantage because this type of unit looks like no other. Many companies and visitors consider it to be the pinnacle of modern trade show displays. Your first attempt might not win any awards, but with additional experience you’ll be able to create even more outstanding designs that will impress visitors at every angle.