And in this Corner . . .

All too often we find ourselves in negotiation--either with the other broker and their clients, or even sometimes with our own clients--where the posture on the other side feels like we're in the Roman colosseum facing a gladiator prepared to battle to the thumbs down! And maybe sometimes we even find ourselves acting this way and then realize we've backed ourselves into a corner. The bottom line is that the "king of the hill, I win you lose" approach to negotiation may have its place occasionally, but if we overplay it and the other side is a savvy negotiator, we may end up with less rather than more.

Our recent Buffini Peak Producers class covered the seven different types of negotiator and made the point that, if we understand the "type" we're dealing with--whether our own client or the other side--the more likely we are to be successful in our negotiations.  Plus, Buffini points out that the Skill of negotiation is the second most important overall Skill a topnotch broker needs, right after the Skill of communication.

Buffini lists the seven negotiation styles as:

The People Pleaser

King of the Hill

Earnest and Honest

Linear Logical

Emotional Ping Pong

The Expeditor

The Rocking Chair

We won't go into detail on all seven in this week's Playbook, but we can make two points: first, if we are simply aware that there are many different negotiation styles and that we can learn to, first of all, recognize them, and then also to discover how best to respond and deal with each, that should go a long way toward smoothing our transactions and our relationships; and, second, as we master the Skill of negotiation, we can list that as something we bring to the table when pitching that competitive listing or in that initial buyer consultation, to give us a competitive edge. How many other brokers do you know who address their training and skill in negotiation? And what better way to justify your full service fee in terms of a tangible benefit to your client!

Anyway, back to that King of the Hill posture. First of all, it can come across as bullying and who likes to be bullied? Most folks, when faced with bullying, end up holding back and not giving as much as they might if they felt the other side were being fair. So, as a tactic for us to use in negotiation, we need to be very judicious and probably only use if it there's no other way.

More important, the savvy negotiator recognizes that the King of the Hill can often be pacified by letting them feel they're winning--both in attitude and on minor items--while we make sure we get the more important points for our side. Buffini tells the story of how an early mentor of his always included in any buyer offer a request that the seller was to "repaint the front porch," whether it really needed it or not. The tactic is to include something in your offer or counter that you would like but that you would be fine to "give up," letting the King feel they have won. This tactic is referred to as "The Decoy" and it can work wonderfully when you're dealing with that King of the Hill!

Buffini concludes his comments on dealing with the King by suggesting we test the waters in advance as we prepare the offer or the counter by a phone call to ask how best to cover or respond to something relatively minor for your side like maybe the closing date or possession and then gauging the response as it will tell you whether you're dealing with a King or another negotiation style.

We'll take a look at some of the other styles in future Playbooks and how a professionally skilled negotiator serves their clients.

Now get that front porch painted!

David M. Hassler

VP, Director of Business Development