Negotiating Tactics

Multiple offers on real estate in Fairfield County, Ct. appears to be occurring with more frequency.  Before discussing the proper way in which to handle them during the Al Filippone Associates Master Series On Negotiations class, we also reviewed some negotiating tactics that are employed by Realtors in many markets.

1. Pre-Conditioning – Conditions that are set before negotiations begin.
2. Anchoring – An attempt to establish a reference point.
3. Hot Potato – One party attempts to make their problem that of their counterparts.
4. The Use of Higher Authority – The need for someone else’s approval.
5. The Power of Legitimacy – A written offer supported by data.
6. Nibbling – One party continually asking for more.
7. The Vice – An attempt to induce your counterpart to negotiate against themselves.
8. Splitting the Difference – An attempt to achieve a sense of fairness.
9. The Deadline – A time frame within which an offer will be withdrawn.
10. The Withdrawn Offer – An offer is verbally withdrawn.
11. The Other Buyer – A tactic used to create fear.
12. Big Favor, Little Favor – Requesting a large concession in hopes of receiving a smaller one.
13. Silence – To make a proposal and remain silent.

Bonus:  The Flinch – A subtle sound or facial expression that communicates disappointment and plants doubts in the counterpart’s mind.

A familiarity with these negotiating tactics and an understanding of the most effective counter strategies builds a foundation that will provide you with a distinct advantage in negotiating the best price for your client.

What are some strategies that are not listed above?

What preparation have you done in and effort to give yourself an advantage when negotiating?

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