How To Deal With Complex Negotiations

The field of business-to-business negotiation can be very complex indeed, and without a navigational tool to assist you in managing this complexity, you could miss opportunities and cost yourself and your organisation dearly.The key to unlocking optimal value from your complex negotiation situations is for you to identify and understand the interests of all the parties impacted by or participating in the negotiation. In some cases, it can be easy for you to understand both the positions & interests of stakeholders in the negotiation. In most cases, however, it is not only difficult for you to identify the interests of stakeholders; it is also difficult for you to identify all the stakeholders.What then are the most critical strategies and skills you need to successfully deal with complex, multi-party negotiations?

1. Identify all the stakeholders in the negotiation.

This may be stating the obvious but in practice, it can be difficult for you to spot and track all the stakeholders in a negotiation. In a business environment, you should at minimum try to identify the following stakeholders:

a. The financial stakeholders

These are the individuals or groups that will finance, underwrite or lend authorisation to conclude an agreement based on the financial terms proposed. It is key that you identify all potential individuals that may have an interest in the financial aspects of the negotiation.

b. The user/consumer stakeholders

These are the individuals or groups that will implement and support the outcome of the agreement that is reached. Typically these are the stakeholders that will live and work with the outcome of the negotiations on a day to day basis.

c. The technical & legal stakeholders

These are the individuals or groups that will sign off and approve the technical and contractual dimensions of the negotiations.

d. Guides/Gurus & other Influencers

These are the individuals or groups that hold significant influence over the decision makers involved in the negotiation.

2. Identify the interests of each stakeholder in the negotiation

There are basically two ways for you to identify an individual or group's interest in a negotiation. The first way is to put yourself in that individual or group's position and to try and see things from his/her/their perspective. What supporting data would you require? What precedents would apply? What assumptions can you make, and test?

The second way is to ask the individual or group a series of questions to help you (and them) to accurately identify their key interests. The best question to ask is "Why?" "Why is this negotiation important to you? Why are you assuming this position? Why is this option being explored?"

3. Create a frame that is appropriate for each stakeholder.

Once you have identified the interests of each stakeholder, you should now create the appropriate frame. Different people take decisions for different reasons. It is not appropriate to highlight the same points to support decision making to all stakeholders. You should focus on communicating the most appropriate frame to each stakeholder or potential stakeholder.

A decision, or part of a decision, can be significantly impacted by the frame that you create for the stakeholder.

4. Create an effective management structure for the negotiation

It is of critical importance to think about how you will manage the various stakeholders in the negotiation. In complex transactions, you will need various resources to support the negotiations. It is critical that you identify a clear role for each participant and that you create an environment within which you present your counterparts with a consistent message.

If your counterparties experiences you and your team to be rational, the odds are greatly enhanced that they will also respond to you in a rational fashion.

You can only present a unified and rational 'front' if you have considered the roles & responsibilities within your negotiation team.
Split the focus in the team between those that will manage the relationship aspects, and those that will manage or be involved in the task related activities. Remember to create an agenda that addresses the interests of all potential stakeholders.

A successful way for you to simplify complex negotiations is to add structure. You need to focus on the process elements to ensure that you make progress at every level of the negotiation.

You will find that complexity can be more easily managed with the use of an appropriate supporting structure.

Salary Negotiation Tips

Salary Negotiation Tip 1 – As we stated on top of, discuss salary solely when the provide is made.

Never negotiate unless you’ve got an offer and that they want you. Why would an employer raise about salary early? To eliminate you from the process. Before the supply, you must be talking about what you can do for the interviewer. Once an offer is created, you can talk regarding what the employer can do for you in terms of salary, advantages, etc. When asked about salary too early, you would possibly respond with “I would like to postpone talking about salary till I totally understand the character of the work we are talking about.” Or you would possibly state, “Well, I am probably not the most affordable, but I’m positive that you pay a truthful salary, do not you?” Which brings us to the next step…

Salary Negotiation Tip two – They are going first.

Let the interviewer tell you the salary vary of the position before you state your salary requirements. Once the interviewer’s salary vary is given, repeat the high figure and pause before responding. Think regarding the supply, compare it to what you recognize the market is paying, contrast it to other similar positions and then respond. What response? The truth – sounds great, sounds acceptable or sounds disappointing.

Salary Negotiation Tip 3

– Once you’ve got given your initial response, let the employer know what you found after you researched the market for the position.

A researched response pays off. The employer is aware of what the market is paying for the position and is alert to whether they pay above or below that market rate. Your researched response will hold credibility with the employer. To find the market rate of your position, the net is a nice analysis tool. Websites embody: jobstar.org; salary.com; careerjournal.com. Use any alternative resource you can access to be told once you enter the negotiation. Do you know others in that field or that position who can tell you what their company pays for the identical position?

Salary Negotiation Tip four – Once you have negotiated the salary, do not be afraid to deal some more.

Determine ahead what else, besides salary, could be a benefit to you. Can you negotiate a flexible work schedule or more vacation? Can you negotiate any expenses (i.e., company automobile, relocation, telephone, parking,
training, etc.)?
Salary negotiation may be a dance. Pay close attention to the signals from prospective employers and your gut reactions throughout interviews and negotiations. They’re reliable predictors of the employment relationship. Salary negotiation tips can help you manage your career and reach the goal of monetary independence. Creatively negotiate from the outset and you’ll be able to do it!

Ways to Negotiate Taxes with the IRS

Are you behind on your taxes, worried that the letters are getting more threatening and the penalties are mounting, paying more attention to the tax relief ads on TV, losing sleep at night? It may be time to talk with the IRS.A taxpayer must meet one of two basic requirements to be able to negotiate with the IRS. To qualify you must be able to prove financial conditions such that you cannot pay your obligations in full or that you have a reasonable reason for not filing or filing late.If you qualify under either of these scenarios consider the following insights on what to expect when negotiating with the IRS.

Poor Financial Situation

If you believe you qualify under the poor financial situation qualification there are two common strategies to consider when making a proposal to settle your account:

1. Compromise Settlement - Formally called an Offer in Compromise this is a filing that allows the taxpayer to make an offer to the IRS for an amount that approximates what IRS could reasonably anticipate collecting from you. This is rarely accepted by the IRS except from people who truly cannot pay.

2. Full Payment Under An Installment Agreement - If you can get your penalties and interest waived, you may be able to reach an agreement by which you would repay the actual tax liability in monthly installments. This makes catching up with the IRS financial more bearable but does not actually reduce the liability.

Reasonable or Legitimate Reason

If you were out of the country, incapacitated or otherwise prevented from filing promptly you may have a reasonable argument as to why you were late and can request consideration. Penalties and interest for not filing promptly or failure to pay your taxes on time are substantial. If you have a legitimate excuse for not filing on time or being unable to pay your taxes when due you may be able to get waivers of the penalties and taxes.These penalties are a scare tactic to encourage prompt payment. The penalties and interest can be waived if you have a legitimate reason. If so, you may request either or both be waived.

Be Proactive - Don't Ignore the Problem

What you do not want to do is ignore the situation. You will eventually have to work things out with the IRS. The longer you wait the greater the penalties, the more the interest, and the less likely you will find an auditor or IRS agent willing to consider your pleas.

Get Help

Once you decide to file either a reduction in taxes or request for waiver of penalties and/or interest make sure you find out precisely what you have to do to file. Errors in the filings are probably the biggest reason for rejection of the requests.

There are times when getting help makes sense. Negotiating with the IRS may be one of those times. The intent of the penalties, process, and forms is to intimidate you, the taxpayer. Enlisting someone to help you through the process is a good idea to lower your anxiety and accelerate the process if for no other reason than the fact that they know the process.If your problem is large enough to warrant getting help make sure you get a qualified professional to assist you.

Countering Power in Negotiation

 If you consistently apply this technique, you will be rewarded with a significant improvement in the quality of the deals that you close. Much has been written about the power that can be found in negotiations. Here are some examples of the things that might provide you with some power:Status & position (you or your position may be held in high regard).hysical appearance (you may be very big physically or be deemed to be physically attrractive).Organisational position (your organisation may be considered powerful).Whilst the aforementioned are examples of some of the things that may confer power on you or your counterpart in negotiations, without a shadow of a doubt, the single most effective way to create power for yourself in negotiation is to create alternatives.
You will never have as much power in a negotiation as you will have if you are not restricted to one option only. If you can place yourself in a position where all you have to do is choose between options, then you will always ensure that you have both power and leverage in negotiations. The funny thing is that whilst we do think of other options when we negotiate we tend to make 2 key mistakes:We think about the alternative options too late in the negotiation process. Typically, we only start think about alternatives when we realise that we are in a deadlock or in a difficult position.
The problem with thinking about alternatives late in the negotiation process is that we might find ourselves in a position where we have no time left and then we may be forced to accept an outcome we would have preferred to avoid. The key to successfully developing alternatives is to do so even before you start negotiating.We do not really invest ourselves in creating alternatives. Whilst we may think about alternatives, often we do not put in place specific actions to develop these alternatives. It is very important that once we've identified possible alternatives that we actually actively engage in exploring these alternatives.
If you want both power and leverage in your negotiations, then you will have no option but to explore fully all the alternatives available to you. As a matter of fact, you may even have to invent some alternatives if there seems to be no alternatives available.Remember that successful negotiations and creativity go hand in hand. Here's a word of warning though. You should carefully think about whether you should let your counterparty know about the alternatives that you at your disposal. If you are in a very competitve negotiation environment then there is not much harm in letting your counterpart know that you have many alternatives available. However, if you are in a collaborative environment, it may be best to not openly reveal the alternatives available to you as this may have a counterproductive impact on your relationships.

Attractive deals require good debt negotiation tips

If credit card firms are passing through a bad phase, this does not mean that you will be offered the best package without making any efforts. You need to bargain about each and everything. Mostly customers argue about the payment period and the installment size with the money granting company. If they get more time, the installment size is large.Key debt negotiation tips to handle your creditorLet’s look at some important factors required to handle the creditor.
· Do not sound desperate at any stage. If you do then the money granting company will try to convince you for a low percentage. Be firm and show that you deserve a good deal. If an experienced consultant is representing you, you don’t have to take these pressures.
· Money granting companies are quite rigid if the customer hides a point from his consultant. Do not hide any kind of information from the firm which is representing you. If you have been a defaulter in the past, your consultant should be aware of this fact.
· Generally financial companies are going through a lean patch but all of them are not facing the same kinds of troubles. Some firms offering settlements but they are in a strong financial situation. Hence, you cannot expect them to offer large reductions. On the other hand, if the financial firm is in a weak situation, it will accept anything. You can even get a reduction of eighty percent in that situation. This is because the firm will be desperate to get money. As a customer, you should analyze the condition of your credit card company before you take any kind of a decision. Using the right negotiation tips is really important.
Getting out of debt through a debt settlement process is currently very popular but you need to know where to locate the best performing programs in order to get the best deals.

key characteristics of negotiation success

1. An appreciation & understanding of the ’big picture’ and the ability to plumb the detail.

Probably the most critical characteristic of world class negotiators is their ability to understand what it is that all parties to the negotiation want. The ability to see past the ‘demands’ of your counterparties and really understanding why it is that they are negotiating with you is an essential element that will help you to understand what common ground exists between parties. Equally important is to understand all the individual elements that will ensure the adoption and implementation of an agreement by all the parties. The key tool at your disposal to facilitate an understanding of both the big picture and the supporting detail is the effective use of questioning.
2. The ability to generate creative options.
What a lot of people would like to describe as business negotiation is often no more than one dimensional haggling about price. Our research suggests that more than 50% of negotiators struggle to create or uncover options outside of this one dimension. The ability to think creatively is not something that comes naturally to all of us but fortunately there are some tools that exist to assist us in generating creative options such as the Disney Creativity Model or De Bono’s Six Thinking Hats.
3. Treating others with dignity & respect at all times – occupying the ‘high moral ground’.
A common misconception is that in order to be a tough negotiator one has to be a rude negotiator. Both Mahatma Gandhi & Nelson Mandela are shining examples of how to occupy the moral high ground . One can be tough on the issues whilst treating the people involved with dignity at all times. The rule of reciprocity states that we will return to others the form of behaviour exhibited towards us. It is folly to think that we can run roughshod over others without them attempting to reclaim their dignity.
Remember that very often victims become aggressors…..
4. Devoting time to structured preparation.
The success of your negotiations will depend in large part on the quality of your preparation. We often make the mistake of thinking that we don’t have enough time to spend on preparing for negotiations. Our research indicates that the primary contributor to eliminating misunderstandings & shortening the negotiation cycle – therefore saving you time – is the quality of your preparation. You will most definitely benefit significantly from your upfront investment in preparation – try to spend at least as much time preparing for negotiations as you expect to be involved in actual negotiation – ideally spend as much as twice more time in preparation as you expect to be involved in actual negotiation.
5. Know and understand your own negotiation strengths & weaknesses.
Continuously develop your skills. Not unlike world class performers in professional sport, world class negotiators spend significant time analysing the way that they negotiate – particularly under pressure. It is only once you have built an understanding of your own weaknesses & strengths that you can implement measures to improve your negotiated outcomes. World class negotiators never stop refining their skills because they realise that one can never reach perfection.
The world within which we negotiate today can often seem much more complex than the largely monocultural and closed societies of yesteryear. Times change and so do the key skills required to be a world class negotiator.
If you are able to do nothing else but devote time to the above 5 key characteristics you will almost certainly improve the quality of your negotiated outcomes. Remember, like Dr Karrass said, in business you don’t get what you deserve, you get what you negotiate.

When to Barter

Barterers focus on the exchange of specific commodities based on their intrinsic value. Negotiators look at all of the aspects of a negotiation and seek to identify potential ancillary incentives or concessions that can be combined with the primary commodities to leverage perceived value and thereby create incremental value.It is important to know when to barter and when to negotiate. Consider the differences.By creating perceived value negotiators are able to motivate others to do what they otherwise would be reluctant to do. Introducing other incentives is also a viable negotiating tactic to counter a power play. Without ancillary issues to thwart a frontal attack there will be little reason for the party with the most power or strength to compromise, AKA negotiate.Bartering exposes one to power plays. Everyone knows that he who has the gold makes the rules.

The basic concept of negotiation is to expand the conversation from a direct exchange of two commodities, assets or services by offering something of modest value to you which may be perceived as very valuable to the other person. In return for obtaining this ancillary commodity or service the other person should devalue their position on the original item. In agreement, both parties come away with more value than expected thus creating incremental value.Rule 1 of Negotiating: The objective of negotiating is NOT to win the negotiation. It is to achieve your goal or objective. Giving something of marginal value to achieve a important objective is prudent use of your assets.Rule 1 of Bartering: The objective of bartering is NOT to win the exchange.

It is to exchange your commodity, asset or service for something of comparable value with a minimum of effort and time. Getting a needed commodity or service without having to expend your time and effort is prudent management of your calendar.In most negotiations we assume that the prime motivators are avarice and greed. It is the use of other, less obvious motivators that makes the difference between those who barter and those who negotiate. Negotiating has the potential of creating value from the process. It is like making 1+1=11 rather than 2. In your discussions you should always be on the lookout for what might be of value to the other person. This is best accomplished by taking the time to understand the needs and wants of the other party in addition to your own goals and objectives.

Simple bartering is appropriate in many situations where time and convenience trump the effort to try to negotiate a better price. At the grocery, for example, you simply exchange money for a can of asparagus. There is no negotiation because you are dealing with an intermediary who gains his or her benefit from very slim margins. They value you as a customer but only marginally. They hope to keep you as a customer by providing reasonable service, good products, competitive pricing and convenience. Your decision to purchase from them depends on how you rate the grocery compared to the competition; not based on how much you hope to negotiate off the price of a can of asparagus.

Negotiating Tips to Buy A Used Car

To be prepared to buy a used car, consider these six negotiating tips.Typically buying a used car is the perfect setting for a negotiation. The buyer has limited assets and the seller is eager to get the car off his lot. Both parties are motivated to make a deal. The setting is ideal.

1. Define your objective. Never discuss price until you are you have found the car you want. Price may make a car appear attractive but that allure will fade when you see what you really wanted in the paper or another lot tomorrow or the next day.

2. Be prepared to buy. Make sure you know what the car would cost elsewhere before making an offer. There are several blue book resources and online shopping can give you a feeling for a fair asking price. The actual condition of the car you are considering will only tweak what the car should bring as compared to others that are available.Remember, asking prices are marked up in anticipation of buyers negotiating discounts and offsets. When you find the used car you want get it checked out by your mechanic before you negotiate the price. A lemon is a lemon at any price!

3. Manage your time. When you have found the car you want don't start negotiating with limited time. Come back when you have ample time as the dealer will use the negotiating delay tactic to make you anxious to complete the deal and drive out with your new car. Avoid this trap.

4. Don't go first. Knowing that there will be a negotiation, the asking price is always set high. Before you make a firm offer ask what the best deal the seller is willing to take is. Typically the seller will pare something off his price to get the negotiations started. This will not be their best price but the most they are willing to offer before you state your price.There are times when they will drop their price below what you are about to offer. Even if this is the case grimace and feign that their best price is slightly out of your reach. Slowly make your counter at a price affordable to you but beneath their asking price to establish the parameters of the negotiation.

5. Don't forget the terms. The terms of a deal can make the price more or less attractive. Make sure you factor in the financial impact of the terms before settling on the final price. Do not pay top dollar for deal options or maintenance agreements. This is often where the dealership makes high margins. Keep it simple and negotiate the best price and financing when buying a used car.

6. Be Observant. Be aware of the other person's response to your offer. Your objective is to bring the negotiation to a close just before they decide not to sell. Don't over negotiate.

While salesmen in dealerships have experience negotiating the sale of a used car you have an advantage of your own, the power of choice. There are many used cars and many dealerships. There are private and public sellers. You can buy in your town, in your area or on the internet. There are online and print resources.

Because you have all these options or choices you have a lot of power because you are free to choose to go to the next seller if you are not happy.If the salesperson will not come down to what you know the low market is, then leave your number and walk out indicating you have other opportunities. At this point the salesperson only has one buyer. This means he will need to come after you and improve his deal or, which might be the case, he paid too much to get the car and is not in a position to be competitive.
　

Debt Negotiation Tips

News is around that Debt Settlement is one of the most popular debt relief; but before actually contacting your creditors you need to at least be aware of the settlement process. Here are some important debt negotiation tips.Being aware of your rights will always give you edge and more control over the matter. 

Not being ignorant of these will help you better make arrangements with your settlement companies and protect your money down to making negotiations with your creditors. Being informed of your Rights is the best negotiation tip you should tuck under your belt securely.Debt settlement is a legitimate alternative to filing bankruptcy. If a consumer has over k in unsecured debt and is currently experiencing a financial hardship then debt settlement can make financial sense.

1. Either you’re doing the negotiation yourself or if you are hiring arbitrators in your stead, you need to be fully aware of your financial status. You should be aware of what to prioritize from your bills. If it’s the best time to consider debt settlement itself and hand over money to your creditors when you can hardly make it through with your daily needs. Always consider the basics and fundamentals.

2. Calculate your bills; compare it with your income. Approximate how much you can manage to pay and offer a lower amount to start with. These is where the challenge of negotiation comes in.

3. To make yourself believable to your creditors, you might want to skip some of your dues to convince them you are financially incapacitated. As you seek for settlement, your debt collectors will have no other means but to oblige rather than see you go for bankruptcy. This will also save you money with your negotiations with them.

4. Given you totally have no idea how all the mumbo jumbo of negotiation works and if you have a little extra to spare, perhaps it is wise to hire negotiators. This usually works for most since these are professionals, skilled and experienced. Be wary enough to choose legitimate services though, since a lot of opportunistic companies who promises you the best but never really getting it done.

5. There really is nothing that beats a person with patience and tact at the most trying and challenging times. So even how irritating your debt collectors get with the threats and perhaps harassment, and how disagreeable your creditors can be when you settle your debts with them keeping that professionalism. Calmness is contagious like anxiety is, so keeping your cool with the negotiations will most likely get you things the way you want.

Negotiation Tips for Beginners

There is almost no end to the literature available on how to become a great negotiator. After all, you have no choice but to compromise when negotiating, and therefore it invariably ends up being a case of ‘lose some to gain more’. Supposing you had the chance to shift your negotiations consistently into “gain more” situations – and beat the competition, why not go for it? Read on and get special tips on charismatic techniques to push the bar greatly in your favour.
This task will require that you to do a lot of homework, as you have to learn how to win a battle – without ever stepping foot on the battlefield!Try to uncover as much detailed information as you can about the person in question. Find out how the individual dealt with similar issues in the past, and if negotiation has been taken up a few times, remind him of the ways in which he had failed – and point them out to him. This would at least deter him from using those same processes with you. Also, brief him about the chances of a ‘win-win’ situation turning into a ‘win-lose’ one, with he being on the losing end.The vast majority of negotiations don’t turn out the way the parties want them to. Negotiation can be very time consuming and is often a strenuous exercise, and in such situations, it may lead to both of the parties becoming disinterested and losing the initiative to continue.

 Also, a lack of motivation on the part of either of the individuals can rapidly lead to a breakdown, thereby terminating any likelihood of an agreement in the future. Sometimes, a third party can set up a deal with your suppliers or customers with less difficulty than you can, and as there is ‘no use of crying over spilled milk’, why let that kind of situation ever happen?Negotiation is certainly not something to run away from, but when it is known that the process won’t help much, it should be held back as a final option. For instance, if negotiation attempts with one of your suppliers or customers have not yielded enough in previous situations – stop negotiating, and try something new. In this sort of situation, one should proceed in a very direct way and establish clear terms. This will at the very least save the time and effort which would have been in vain had negotiation otherwise ensued.
　　

5 Real Estate Negotiation Tips

Real Estate Negotiation is a fine art. It does not matter how good your investment strategy is or how profitable the Utah real estate market is for others. It does not matter if you are investing in a hot market like Provo real estate. If you can not close the deal in a win-win manner at the negotiation table, you will not find the success you are seeking. Here are some practical and basic tips for successful negotiations.
1) Don’t try the Arab trader approach. Many investors view negotiation for an expensive piece of real estate much as they would view buying an old lamp at the flea market. You make a ridiculous offer first, and your counterpart makes an even more ridiculous counter offer. Then, eventually, you meet in the middle at a fair price. Real Estate negotiations do not work like that. You should start off with a fair offer. The area for compromise is restricted to the range of fairness right from the beginning if both parties start there.
2) Try on the other guy’s shoes. You should try to understand the priorities of the other guy. If you can find out what is most important to him, you know where to make concessions in order to get even better concessions in return. If your counterpart’s major concern is the move in date, giving up some ground in that area will encourage him to make major concessions in areas more important to you. You might view this as knowing your opponent, and that is not the wrong way to look at it.
3) Compromise is the key. The idea of win-win does not mean that each side is going to get everything they want. You have to give up something to get something. If you do not approach the negotiation with that concept firmly in your mindset, you are not going to have much success.
4) Meet under that old oak tree. A recent country and western song spoke of a couple who would meet in the middle between their two homes under an old oak tree. That is the key to successful compromise and eliminating little hitches in the negotiations. You should always be willing to just split the difference on the little things. When you pay half and he pays half, it is fair and things can proceed.
5) Don’t sweat the small stuff. Many negotiations get bogged down in minor details before the major issues are even broached. This is foolish. It is the major issues that are going to decide the success or failure of the negotiation. You can just leave the little details until last, and tackle the big ones. Once the big issues are settled, the little ones seem less urgent and are quickly settled.
Real Estate Negotiation is a fine art. It does not matter how good your investment strategy is or how profitable the Utah real estate market is for others. It does not matter if you are investing in a hot market like Provo real estate.

How To Create Value In Your Negotiations?

It was yet another wonderful series of negotiation trainings. At today’s“Effective Negotiation Skills”, I loved it when participants start to apply the structure and tactics of negotiations. It is an indication of the learning process. At the same time, they are encouraged to vary them when needed. Well done, guys! (And welcome to the world, Stanley.
As promised, here are the steps on creating value in your negotiation:

　　1. Know what the other party wants.
2. Know what you want.
3. Find the common area within.
4. Word your language to their interests.
5. Begin a process of subtle ‘trading’ of the values.
6. Always gear up on your confidence and negotiating balance of power.
7. Document your agreements.
8. Follow up with action.

How to Negotiate a House Price

Unless you are a real estate investor or developer, there are few personal items that will cost as much as the home you buy for your family. Your home represents far more than just an investment. It will become your castle, your nest, your family's home base. The point is that when you negotiate a house price you may or may not be the best person to do so because there are emotional issues that may hinder your ability to negotiate effectively. An example might be the pressures of a spouse who really, really, really wants the house.
Buying a house comprises two diametrically opposed issues. One is location and configuration. These are personal issues that are based on your preferences, proclivities, and desires. They are emotive and philosophical by nature. The other is financial. It is based in hard numbers and facts. One reason real estate brokers can be of value is that they can take on the negotiating aspect of the transaction leaving the personal issues to you. It is up to you to find and select a home that meets your personal criteria. It is also your responsibility to manage how the broker handles the financial negotiations.

　　Just because you delegate the financial aspect of the acquisition does not mean you relinquish control. To manage the broker's efforts on your behalf when negotiating a house price you will need to provide him direction.
Brokers are not acquiring the house. They are not paying the mortgage. They are looking to make money on the deal as efficiently as possible. You can help them achieve their goal by clearly giving them direction about your expectations from them while they act as your agent.
1. Determine how much you can afford to pay in terms of down payment, monthly payments and total price. Then tell the broker not to waste your time with anything more than 15% over the maximum you know you can comfortably afford. You can likely get the asking price down a bit but there are always hidden costs that creep into the picture so a little buffer is always nice to have.
Brokers frequently try to get you to stretch. You need only be firm. Your time is valuable and if you have set your budget accurately, there is little reason to look at anything that is out of reasonable reach. Do not let the broker tell you not to worry about the price just find what you want. He or she is trying to draw your emotive side into the equation hoping to get you to stretch a bit. This is not servicing your needs. Brokers should be directed to do what you ask not what they think might be best.
2. Determine the requirements you need in terms of size, number of rooms, lot configuration, distance from work, and whatever other criteria is important to you. Tell the broker these are your requirements and that you do not expect him to bring in properties that deviate substantially from your criteria. If you are looking for a three bedroom house and the broker continually presents you the perfect five bedroom homes you are working with the wrong broker as he is wasting your time as well as his own.
3. Make sure the broker is showing you all available properties that meet your needs not just the listings from his company. Too often brokers try to maximize their commissions by only sharing their listings. You need a broker who will try to service you fully regardless of his or her commission.
4. Some brokers represent both parties. This is known as dual agency. By law they need to tell you if they are representing both parties. If so, realize that your broker is legally obligated to fairly represent the seller as well as you. This is not an optimal situation if you are going to rely on the broker to negotiate the best possible deal for you. In such a case you can refuse to approve a dual agency listing asking the broker to find you or the buyer another broker or you can assume the negotiations yourself.
5. Set the price you are prepared to offer. Depending on the broker's role you will want to establish the maximum you want to pay and the minimum you should offer. Do not let the broker recommend a high initial offer to not offend the seller. Brokers traditionally try to narrow the gap quickly to get a deal made before losing the opportunity. You should be more interested in negotiating the best possible deal. The seller, just like you, wants to see a deal made and is not likely to get too upset with a modest offer. Just keep it reasonable from your perspective based on comparable sales which the broker should provide you and the economic climate.
6. Ready to negotiate? When you are ready to make an offer and start negotiations you should provide your broker with specific guidelines that he can work within without your prior consent. I recommend that you:
• require the broker to discuss any offer with you before it is tendered;
• obligate the broker never to intimate to the seller what you might be willing to do;
• thoroughly debrief the broker as to how the seller reacted when presented with an offer; and,
• require all offers and counter-offers to be in writing.
I actually prefer you be in the room so you can assess the reaction personally but sometimes this is not possible. The reason is that the reaction goes a long ways towards guiding your next response. When the broker, any broker, relays what happened they will, consciously or not, bias their report to you. It is like the old 'telephone' game. A phrase is repeated through several people and changes with each restatement.

Preparing for a successful negotiation

Depending on the scale of the disagreement, some preparation may be appropriate for conducting a successful negotiation.
For small disagreements, excessive preparation can be counter-productive because it takes time that is better used elsewhere. It can also be seen as manipulative because, just as it strengthens your position, it can weaken the other person's.
However, if you need to resolve a major disagreement, then make sure you prepare thoroughly. Using our free worksheet, think through the following points before you start negotiating:
Goals: what do you want to get out of the negotiation? What do you think the other person wants?

　　Trades: What do you and the other person have that you can trade? What do you each have that the other wants? What are you each comfortable giving away?
Alternatives: if you don't reach agreement with the other person, what alternatives do you have? Are these good or bad? How much does it matter if you do not reach agreement? Does failure to reach an agreement cut you out of future opportunities? And what alternatives might the other person have?
Relationships: what is the history of the relationship? Could or should this history impact the negotiation? Will there be any hidden issues that may influence the negotiation? How will you handle these?
Expected outcomes: what outcome will people be expecting from this negotiation? What has the outcome been in the past, and what precedents have been set?
The consequences: what are the consequences for you of winning or losing this negotiation? What are the consequences for the other person?
Power: who has what power in the relationship? Who controls resources? Who stands to lose the most if agreement isn't reached? What power does the other person have to deliver what you hope for?
Possible solutions: based on all of the considerations, what possible compromises might there be?

5 Ways To Negotiate More Effectively

1) Learn to flinch.
The flinch is one of the oldest negotiation tactics but one of the least used. A flinch is a visible reaction to an offer or price. The objective of this negotiation tactic is to make the other people feel uncomfortable about the offer they presented. Here is an example of how it works.

　　A supplier quotes a price for a specific service. Flinching means you respond by exclaiming, "You want how much?!?!" You must appear shocked and surprised that they could be bold enough to request that figure. Unless the other person is a well seasoned negotiator, they will respond in one of two ways; a) they will become very uncomfortable and begin to try to rationalize their price, b) they will offer an immediate concession.
2) Recognize that people often ask for more than they expect to get.
This means you need to resist the temptation to automatically reduce your price or offer a discount. I once asked for a hefty discount on a pair of shoes hoping to get half of what I asked for. I was pleasantly surprised when the shop owner agreed to my request.
3) The person with the most information usually does better.
You need to learn as much about the other person's situation. This is a particularly important negotiation tactic for sales people. Ask your prospect more questions about their purchase. Learn what is important to them as well as their needs and wants. Develop the habit of asking questions such as;
"What prompted you to consider a purchase of this nature?"
"Who else have you been speaking to?"
"What was your experience with…?"
"What time frames are you working with?"
"What is most important to you about this?"
It is also important to learn as much about your competitors as possible. This will help you defeat possible price objections and prevent someone from using your competitor as leverage.
4) Practice at every opportunity.
Most people hesitate to negotiate because they lack the confidence. Develop this confidence by negotiating more frequently. Ask for discounts from your suppliers. As a consumer, develop the habit of asking for a price break when you buy from a retail store. Here are a few questions or statements you can use to practice your negotiation skills:
"You'll have to do better than that."
"What kind of discount are you offering today?"
"That's too expensive." Wait for their response afterwards.
Learn to flinch.
Be pleasant and persistent but not demanding. Condition yourself to negotiate at every opportunity will help you become more comfortable, confident and successful.
5) Maintain your walk away power.
It is better to walk away from a sale rather than make too large a concession or give a deep discount your product or service. After attending my workshops, salespeople often tell that this negotiation strategy gives them the most leverage when dealing with customers. However, it is particularly challenging to do when you are in the midst of a sales slump or slow sales period. But, remember that there will always be someone to sell to.
Negotiating is a way of life in some cultures. And most people negotiate in some way almost every day. Apply these negotiation strategies and you will notice a difference in your negotiation skills almost immediately.