Daily Real Estate News  |  November 16, 2007  |   How to Negotiate Like a Ninja
Any master of the martial arts knows that winning is as much about mental discipline as physical skill. Becoming a black belt negotiator requires a similar meld of mind and practice, Michael D. Lee, CRS®, GRI, said at the 2007 REALTORS® Conference & Expo in Las Vegas.

Lee, author of Black Belt Negotiating, says he keeps his skills sharp by negotiating everything, from the cost of dry cleaning his shirts to the price of a suit at Nordstrom’s. “Anytime you pull out your wallet think, ‘Is this a time to negotiate?’,” he said. “There’s nothing to lose if you negotiate on an issue. If you lose, you’re no worse off than when you started.”

Also, remember that negotiation is a mindset, not a process, he said. “Most negotiations are won or lost before you ever sit down at the bargaining table." Preparing mentally before you meet your opponent is key. Among the martial arts principles Lee applies to negotiation are:

• Know your opponent. If you’re a listing agent, ask questions of potential buyers, such as how long they’ve been looking or how many offers they’ve made. If you’re working for a buyer, find out how long a property has been on the market and if there’ve been any price reductions.

• Identify vital striking points. Know what your clients’ wants and needs are, and understand the difference between needs, which are must-have items, and wants, which are optional and so negotiable.

• Adopt an effective posture. Enter the negotiating process with a friendly demeanor to set the tone for effective discussions.

• Block an opponent’s move with your own. If a seller asks a concession from your buyer, for example, don’t agree without first asking for a seller concession in return.

• Stay calm and mentally focused. Once negotiations have begun, “distance yourself from the battle, don’t get emotionally involved,” said Lee.

And as with any sport, grow your negotiating skills gradually, suggested Lee.

Begin by frequenting garage sales where you can haggle over prices. Then work your way up the retail food chain to stores that sell antiques, department stores, and ultimately high-end retailers. When you walk out of Tiffany’s with a discount, you know you’ve earned that black belt.

— REALTOR® Magazine Online