Skilled negotiators understand where their power comes from, where a deal might land and how to influence and frame negotiations to achieve a more successful outcome for their clients. Here are three critical negotiating concepts that will help you get a better deal, every time.
BATNA is your Best Alternative to a Negotiated Agreement. BATNA is a negotiating skill and a negotiating strategy as well as a measurement of relative power in a negotiating scenario. In simple terms, it is the relative attractiveness of other courses of actions available to you should your current negotiation reach an impasse.
In a strong seller’s market where there are multiple buyers for each property, sellers possess a very strong BATNA. Don’t like the offer? Wait for a better one.
Identifying your BATNA before heading into any negotiation is crucial to laying the groundwork for a successful outcome. However, assuming your BATNA without evidence or preparation is a mistake many people make.
Take our strong seller’s market, for example. If you assume there are multiple buyers for each property and that your BATNA is so strong that you can ask for any price you want, you may end up with a stale listing and an undesirable outcome. Buyers may be plentiful and may be excitable, but at the end of the day they remain rational.
Your BATNA must be assessed critically, and it must account for more than just price. Hiring a Realtor who can accurately assess your BATNA and develop negotiation strategies to suit your needs will go a long way to achieving a successful outcome.
ZOPA is your Zone of Potential Agreement. Going hand in hand with your BATNA this is the identified band of value in which an agreement will likely be achieved through negotiations. Understanding your ZOPA, and how you can influence it in your favour is another critical negotiating tool that calls for a skilled and experienced Realtor.
Anchoring is a technique used to influence your ZOPA. It is often said that she who speaks first, loses. Studies have shown that this is simply not true. When you make your first offer you directly affect the ZOPA by introducing an anchoring bias.
Psychologically, anchoring has the effect of framing the negotiation and an anchoring bias often works in favour of the side that brings forward the first offer. You need to have a Realtor on your side who understands how to frame a negotiation successfully, and anchoring is one technique that helps both buyers and sellers get to a successful outcome.
At Madsen Langlois our mission is to share our knowledge, offer our expertise and show just how much we care about every client. Expert negotiating is just one of the advantages we offer our clients. Contact us today to see how we can help you achieve better outcomes in all things real estate.