The 3 P's of Negotations

In real estate and throughout life in general, we negotiate pretty much everything.  If there is something we want to accomplish or need from another party.. the negotiations begin.  So how do we ensure we win the negotiation.  

It's a process, right?  But there are three aspects that are critical to your success, especially in the real estate field.

Can you guess what they are.. the P's are a hint:  Prepare - Present - Position

The first aspect really should be a given, but especially in the real estate field.   

Prepare:  By prepare, it is essential you know and understand your goals but most importantly their motivation.

Why:  Understanding your clients motivation is what will give you the silent edge when trying to win their business.   For example: You have a listing appointment, you understand the goal is to sell their home, but what is their motivation?  Is it money, new job, retirement, etc.    Understanding the motivation is going to direct your complete presentation.

Present:  In today's Internet world often times presentations are online, or you simply get a call I am sending over an offer. Of course you certainly need a professional presentation.  But our goal is to help you win the negotiation, that is why we train our agents to present (offers) in person.  

Why:  The first step in developing the win, is getting to know your opponent, but most importantly it silently creates action towards the solution. It allows you to keep the tone of the conversation on track.  It also set's a higher standard!

Position: You have prepared, you have presented so how does position play in the win?  It moves both parties closer to each other until you have full agreement.  Do you think if you present your offer in person, this helps position you for the win?  

Why:  Part of negotiations is the back and forth of the process.  If you are a listing agent, you know your clients goal and motivation (your position), but what you don't know is the buyers motivation.  By asking how and what questions, this allows you to get those answers and come to agreement.

You may think these are pretty basic steps in the process. However, once you're in the process of negotiating, it is easy to get off track and next thing you know the other party won.  

As a new agent, practicing these skills is essential in helping you build confidence in your ability to win for your clients. But is also important as a seasoned agent to practice and remember these basic steps.    As a seasoned agent have you noticed a change in the number of wins?   Look back and I bet you will find one of these three steps was missing in that transaction.

At our office, we offer a complete range of training FREE to our agents under our Ignite and Fast track program.   In addition, we offer mentoring and coaching individually. The three P's is so essential in your real estate career this is reviewed regularly with our agents... and guess what they are winning those tough negotiations.

If you are interested in starting a career in real estate or taking your real estate career to the next level, don't hesitate to contact us.  We love helping agents in and out of our office!