Negotiation is one of those aspects of life we face on a daily basis. It is essential that a person have powerful negotiation skills, as everything in life requires it. Through great negotiation techniques, you can be very successful in your work, as well as your personal life.
The most important thing is you must understand that negotiation is a skill or a talent. Not everyone has the ability to negotiate; however it is achievable through learning and practice. Everyone should try to become proficient at this skill, to ensure you get the best deal for what it is you require. In order to be a great, successful and powerful negotiator, there are some important tips you need to keep in mind.
When negotiating it important you focus on the particular outcome you want and you must be able to successfully present your argument. At the same time, if money is involved, it is essential that you talk about it before finalizing a deal. Do not be shy and avoid the topic. There should be no surprises at the last minute. Being calm focused and patient while negotiating is very important. You should always keep your emotions away from the discussion. There’s a saying that goes "When emotion is high, intelligence is low". If you can remain calm, cool and collected, you are more likely to negotiate a successful deal.
Never take the first step when negotiating. If negotiating on a wage rate and someone asks you what rate you are expecting, ideally respond with a question back to them by asking them their budget and what amount they are willing to pay. Believe in what you are asking for. You can choose an amount and not budge, or you can ask for more than the amount you intend on receiving and be willing to negotiate. Do not be arrogant in your conversation but have very good reasons to convince them that they can give you a better offer than the present one.
Be very clear on your bottom line. In order to be a successful negotiator you should be able to give the impression that you may walk away from the deal that is being offered to you, if that is what you are actually willing to do. You must also be ready to offer the other party those things which do not have any impact on your side of the deal or the things you are willing to compromise on. This way, everyone feels they have contributed to the negotiation process and ensures a good relationship between both parties at the end of the conversation.
If you have other options you are looking at, ensure the other party is aware of them, albeit not the specifics.
A successful negotiator should be able to read body language and use it in order to read what the other person is thinking or to send a message to the other party. Body language is of great assistance in assessing when it is time to move to another subject and take a different tack.
These are some important points and tips every successful negotiator should keep in mind and work on. Read books on negotiation, body language and influencing. Negotiation is a skill that can be learned and with practice you will be a far more confident negotiator.
By: Glenise Anderson
Sunday, August 14, 2011
Thursday, July 14, 2011
5 Steps to Successful Negotiation
Negotiation skills are an attribute which every woman wanting to get ahead must have. In business today, successful negotiation is extremely important and is one of the pre-requisites for achieving success. The following are 5 steps which should be followed in order to negotiate successfully in business.
The very first step is to place yourself in the shoes of the person whom you are negotiating with. Look at things from the other person’s perspective and evaluate what their objectives are. This will help you to understand what outcome they are looking for and hence could give you an advantage in the negotiation process. You will also be able to analyze how the other group views you and your proposal.
The next step which should be followed is to know everything about the business you are dealing with. You need to prepare prior to your meeting and find out as much as possible about them. Things which you need to consider should be how well the business is doing at the moment, whether they are carrying out the deal to meet some financial requirement and/or what the purpose is for them to be carrying out business with your company. The main reason for this step is to find out the motive behind the business dealing.
Always remember the person asking the questions is the person who holds the power. Ensure you ask questions to clarify the outcome are required and what is required from you.
There are many techniques involved with negotiation and you should make use of the one you feel most comfortable with. There are generally 3 types of techniques which every woman should select from. These three techniques are:
- Competitive/Conflict negotiation
- Cooperative Negotiation
- Problem Solving Negotiation
Each of these techniques is unique on their own and follows a different plan. Research them all and then select one, which suits your style of negotiation and which also, helps your company fulfill its business needs.
The fourth step is to prepare a strategy. In order to achieve your objectives and come out successful from the negotiation, you need to have a well thought out and planned strategy. You can never predict what is going to happen so being prepared is the best option. Prepare the things you need to say and what you want to achieve beforehand. Knowing this information in advance, frees your mind to concentrate on managing whatever happens on the day.
Some of the tasks you should focus on completing before the meeting should be the time at which you will be carrying out the negotiation - is it suitable to both parties? Next, the duration of the meeting should be kept in mind, have you left enough time between meetings, so you don’t have to rush from one to another – staying focused is the key. Where should the meeting be held to ensure a successful outcome is also very important?
The fifth and final step in negotiation is that you remain calm. There will be aspects in the meeting when you will not know what to do or say. At these moments the best thing to do is remain calm and patient. Do not let them know you are feeling pressured and most of all, do not let the other party intimidate you. If in doubt, ask a clarifying question.
By: Glenise Anderson
The very first step is to place yourself in the shoes of the person whom you are negotiating with. Look at things from the other person’s perspective and evaluate what their objectives are. This will help you to understand what outcome they are looking for and hence could give you an advantage in the negotiation process. You will also be able to analyze how the other group views you and your proposal.
The next step which should be followed is to know everything about the business you are dealing with. You need to prepare prior to your meeting and find out as much as possible about them. Things which you need to consider should be how well the business is doing at the moment, whether they are carrying out the deal to meet some financial requirement and/or what the purpose is for them to be carrying out business with your company. The main reason for this step is to find out the motive behind the business dealing.
Always remember the person asking the questions is the person who holds the power. Ensure you ask questions to clarify the outcome are required and what is required from you.
There are many techniques involved with negotiation and you should make use of the one you feel most comfortable with. There are generally 3 types of techniques which every woman should select from. These three techniques are:
- Competitive/Conflict negotiation
- Cooperative Negotiation
- Problem Solving Negotiation
Each of these techniques is unique on their own and follows a different plan. Research them all and then select one, which suits your style of negotiation and which also, helps your company fulfill its business needs.
The fourth step is to prepare a strategy. In order to achieve your objectives and come out successful from the negotiation, you need to have a well thought out and planned strategy. You can never predict what is going to happen so being prepared is the best option. Prepare the things you need to say and what you want to achieve beforehand. Knowing this information in advance, frees your mind to concentrate on managing whatever happens on the day.
Some of the tasks you should focus on completing before the meeting should be the time at which you will be carrying out the negotiation - is it suitable to both parties? Next, the duration of the meeting should be kept in mind, have you left enough time between meetings, so you don’t have to rush from one to another – staying focused is the key. Where should the meeting be held to ensure a successful outcome is also very important?
The fifth and final step in negotiation is that you remain calm. There will be aspects in the meeting when you will not know what to do or say. At these moments the best thing to do is remain calm and patient. Do not let them know you are feeling pressured and most of all, do not let the other party intimidate you. If in doubt, ask a clarifying question.
By: Glenise Anderson
Tuesday, June 14, 2011
How to be a negotiation expert?
As it is known, Communication in society is an essential part of daily life. And the relationship among people varies great due to different kinds of methods towards different people. Some of them have made much effort on dispatching signal of friendship and result in silence. While another seem gain much more than they give. Skills play a crucial role against that tremendous difference.
Communication on business is defined as negotiation. A master of negotiation will be able to introduce him or product with high proficiency. To some extent, it is the reason why there always happy faces passing by some others with a long and black one. Are you ready to be one of the happy faces, check out below ideas of how to be an expert of negotiation?
First, set up an attitude towards your mission. Although you are aiming at selling the product to potential customers, yet long term plan must be thought over in your mind. It is scarcely for one to sell the product at the first talk except haphazard clients. Leave a good impression of you and your product is some sort of success already. In order to impress your clients, one rule must be kept, just make suggestions not decisions.
Second, knowledge of yourself, professional stuff of your product and material of potential customers are all indispensable factors to the success of the negotiation. Wherever you are, learning is absolutely necessary, personal merit is embodied through your activities in social life. So be well prepared to perform yourself at any time. Much professional knowledge will help you build confidence when introducing the product, also a good way to win appreciation from customers. Information about your customer will guide you how to offer the most interested point during conversion.
Third, concentrate on customer’s feedback and mood changing. If it is noticed that the customer is not quite agree with your viewpoint, you should try some other evidence or skip it to some other ways that can help you grasp customer’s interest. Additionally, ease talking atmosphere will do much benefit to your negotiation.
By: Light Zhao
Communication on business is defined as negotiation. A master of negotiation will be able to introduce him or product with high proficiency. To some extent, it is the reason why there always happy faces passing by some others with a long and black one. Are you ready to be one of the happy faces, check out below ideas of how to be an expert of negotiation?
First, set up an attitude towards your mission. Although you are aiming at selling the product to potential customers, yet long term plan must be thought over in your mind. It is scarcely for one to sell the product at the first talk except haphazard clients. Leave a good impression of you and your product is some sort of success already. In order to impress your clients, one rule must be kept, just make suggestions not decisions.
Second, knowledge of yourself, professional stuff of your product and material of potential customers are all indispensable factors to the success of the negotiation. Wherever you are, learning is absolutely necessary, personal merit is embodied through your activities in social life. So be well prepared to perform yourself at any time. Much professional knowledge will help you build confidence when introducing the product, also a good way to win appreciation from customers. Information about your customer will guide you how to offer the most interested point during conversion.
Third, concentrate on customer’s feedback and mood changing. If it is noticed that the customer is not quite agree with your viewpoint, you should try some other evidence or skip it to some other ways that can help you grasp customer’s interest. Additionally, ease talking atmosphere will do much benefit to your negotiation.
By: Light Zhao
Saturday, May 14, 2011
Top 10 Negotiation Strategies
Negotiating with the foreclosing lender is the best option to stop a foreclosure. Lenders are in the business of loaning money, not owning homes. Many Real Estate Agents shy away from working on Short Sale transactions because they get frustrated with their mediocre results. Instead of complaining about why negotiating with a lender is so difficult, it is more important to find a way that will make negotiations easier. The following are the Top Ten Negotiating Strategies when dealing with a foreclosing lender.
1) Communication – Lenders do not like to talk to people who are rude or who are disorganized when on a call. Be courteous and efficient when making calls. Have all information and paperwork in front of you and be well prepared time is not wasted. Lenders have to field calls all day and it can be frustrating for them to talk to people who are fumbling for questions and information.
2) Sense of Urgency – If you show a sense of urgency to the lender and respond to all calls, letters and emails in a prompt fashion, the lender will most likely treat your file the same way. They know you are on top of your file and are doing everything you can to make sure the process is moving along. It will be much appreciated as they know they won’t have to spend much time tracking you down if they need something from you.
3) Create a Proposal/Solution: Lender have so many short sale files to process, it really helps when you help them see the light but it must be reasonable. Do not expect that the bank is desperate to give a huge discount. Create a Net Sheet showing what they would get if the home went to foreclosure, then show the current estimated value through comparables and days on the market plus realtor commissions, past taxes, etc. Then show the different offer amounts and show that you are submitting the highest one.
4) Create Feeling of Cooperation – Create a sense of cooperation with the lender that everyone involved is trying to work together to come to a solution. Whether this is the listing and buying agent cutting commissions ½ percent or showing the buyer to agree to pay a little extra to close the deal.
5) Talk the Same Language as the Lender – The lender doesn’t need to hear another sob story about how the homeowners are good people and really tried to pay their mortgage. Talk their language and give them solutions that will work and do not demand they stop the foreclosure. Understand how the lender will see the deal and what needs to happen to get a short sale approved. This is where the Net sheet comes into play as it is exactly what they need to be looking at in order to make a decision.
6) Knowledge of your File – Make sure you know all the details of your file as the negotiator does not have time to wait for your answers and if can answer all of their questions, they will be more willing to work with you as they know conversations can be expedited. This is where you should have your file in front of you every time you make a call so you are well prepared with any questions they may have.
7) Learn about the Lender – Different lenders will look at your short sale file differently. An institutional lender will handle the foreclosure differently than a private lender. Typically, a private lender would be less willing to budge or make things happen, especially if they are a second lien holder. The type of lender will determine how you will negotiate with them.
8) Mention the Loss to the Lender – Even though a Net sheet is put together to show the costs they will incur if the property goes back into their inventory, but do remember to point out things such as they will lose money due to the costs of the foreclosure, back payments, wear and tear to the property, marketing costs to sell the property, etc. This will prove to them that the costs to do nothing will be much higher.
9) Create an effective hardship letter – Make sure that when the homeowner creates a hardship letter is provides a clear understanding of why the homeowner can no longer carry the mortgage. Do not provide a 5 page report of the hardship, but point out key points that tie into the financial hardship and how it will not be resolved in the near future.
10) Stay on top of your files – Do not expect that the lender’s loss mitigation department is running on 100% efficiency. Many negotiators have hundreds of files to work on and it is easy for them to lose track of progress on any given file. If you requested to stop a foreclosure from going to auction, you need to call the court to make sure it has been stopped. If the court says they received no word from the lender, call your lender back and inform them nothing has been done. If you don’t do this, you may find yourself working months on a short sale transaction and having it lost because you assumed the negotiator did their job.
1) Communication – Lenders do not like to talk to people who are rude or who are disorganized when on a call. Be courteous and efficient when making calls. Have all information and paperwork in front of you and be well prepared time is not wasted. Lenders have to field calls all day and it can be frustrating for them to talk to people who are fumbling for questions and information.
2) Sense of Urgency – If you show a sense of urgency to the lender and respond to all calls, letters and emails in a prompt fashion, the lender will most likely treat your file the same way. They know you are on top of your file and are doing everything you can to make sure the process is moving along. It will be much appreciated as they know they won’t have to spend much time tracking you down if they need something from you.
3) Create a Proposal/Solution: Lender have so many short sale files to process, it really helps when you help them see the light but it must be reasonable. Do not expect that the bank is desperate to give a huge discount. Create a Net Sheet showing what they would get if the home went to foreclosure, then show the current estimated value through comparables and days on the market plus realtor commissions, past taxes, etc. Then show the different offer amounts and show that you are submitting the highest one.
4) Create Feeling of Cooperation – Create a sense of cooperation with the lender that everyone involved is trying to work together to come to a solution. Whether this is the listing and buying agent cutting commissions ½ percent or showing the buyer to agree to pay a little extra to close the deal.
5) Talk the Same Language as the Lender – The lender doesn’t need to hear another sob story about how the homeowners are good people and really tried to pay their mortgage. Talk their language and give them solutions that will work and do not demand they stop the foreclosure. Understand how the lender will see the deal and what needs to happen to get a short sale approved. This is where the Net sheet comes into play as it is exactly what they need to be looking at in order to make a decision.
6) Knowledge of your File – Make sure you know all the details of your file as the negotiator does not have time to wait for your answers and if can answer all of their questions, they will be more willing to work with you as they know conversations can be expedited. This is where you should have your file in front of you every time you make a call so you are well prepared with any questions they may have.
7) Learn about the Lender – Different lenders will look at your short sale file differently. An institutional lender will handle the foreclosure differently than a private lender. Typically, a private lender would be less willing to budge or make things happen, especially if they are a second lien holder. The type of lender will determine how you will negotiate with them.
8) Mention the Loss to the Lender – Even though a Net sheet is put together to show the costs they will incur if the property goes back into their inventory, but do remember to point out things such as they will lose money due to the costs of the foreclosure, back payments, wear and tear to the property, marketing costs to sell the property, etc. This will prove to them that the costs to do nothing will be much higher.
9) Create an effective hardship letter – Make sure that when the homeowner creates a hardship letter is provides a clear understanding of why the homeowner can no longer carry the mortgage. Do not provide a 5 page report of the hardship, but point out key points that tie into the financial hardship and how it will not be resolved in the near future.
10) Stay on top of your files – Do not expect that the lender’s loss mitigation department is running on 100% efficiency. Many negotiators have hundreds of files to work on and it is easy for them to lose track of progress on any given file. If you requested to stop a foreclosure from going to auction, you need to call the court to make sure it has been stopped. If the court says they received no word from the lender, call your lender back and inform them nothing has been done. If you don’t do this, you may find yourself working months on a short sale transaction and having it lost because you assumed the negotiator did their job.
By: Art Lee
Subscribe to:
Posts (Atom)