Learning the Art of the 4 C’s of Negotiations
A negotiation can be, without a doubt, one of the most challenging steps in every real estate sales process. Even a real estate negotiation expert will tell you that this skill needs many years of experience before you can master it. But being a good negotiator is also a critical step towards closing deals with favorable results.
One of the most popular techniques in this area is the Four C’s of Negotiations, and this includes:
✓ Common interest
Ask any real estate negotiation expert, and he will tell you that the first step to effective negotiation is finding a common interest between you and the other party. What do you want to achieve out of the negotiation? That common interest will be the foundation for the negotiation because there’s no need to negotiate if there isn’t one.
✓ Conflicting interests
While you and the other party share a common goal, you will also have conflicting interests that will cause challenges within the negotiation process. Statements like “I don’t agree with the price of the property” or “I don’t like the quality of the contract” are signs of conflicting interests. Being able to determine this early on in the negotiation will help you come up with a “win-win” situation for most of your negotiations.
✓ Compromise
In any negotiation, no good result will come out unless both parties are willing to compromise something from their needs and wants. This is where you and the other party sit down and talk about what your needs are and what you’re willing to compromise to be able to achieve your common interest or goal. An excellent real estate negotiation expert should easily guide both parties into giving up something of their own interest to be able to reach a mutual decision that will allow both parties to enjoy the benefits.
✓ Criteria
Once an agreement is reached by both parties, the final criteria is laid out and should reflect all the conditions that were agreed upon on both ends to close the negotiation process. An experienced real estate negotiation expert should be able to come up with the best criteria from which final conditions are laid out for both parties.
A famous quote says not to negotiate out of fear but to not be afraid to negotiate, and it’s true. Negotiation may be a long and tedious process. Still, it’s necessary to ensure that both parties will benefit from any agreement, whether over a property for rent or lease. But since not all of us are good negotiators, it would be beneficial to hire a real estate negotiation expert who can take care of the nitty gritty and guide you throughout the negotiation process.
Get in touch with Levi Smith at PA Commercial, LLC if you need professional assistance in negotiating properties you would like to rent, purchase or sell for your business interests. Here, you can hire a real estate negotiation expert to help you out.