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IRWA
Principals of Real Estate Negotiations
| Question | Answer |
|---|---|
| **What are the 3 negotiation types? | 1. Integrative 2. Bargaining 3. Intra-Agency |
| Common ground | based on shared interests and specific areas of agreement: goals, interests, values, beliefs etc. |
| what things should the negotiator consider when dealing with the seller? | communication, biases, interests, intentions, motivations |
| empathy | hearing and understanding |
| sympathy | feeling bad |
| Trust is built when | all through the transaction - keep your word |
| Integrative Negotiation | Collaborative, 2 parties working together of reaching a settlement. JOINT VALUE - WIN - WIN, Problem solving, enlarge the pie, Finding ways we can agree. Process of inquiry, work together |
| Why is TRUST the first key? | This is a cornerstone and we can't move on without it. |
| Bargaining Negotiation | Usually adversarial, quid pro quo (something for something), parties are in conflict, use of Power achieved through compromise |
| What is good to do in the bargaining? | Find common ground |
| zero sum game | at every point the negotiator wins - one person's gain is exactly balanced by another person's equivalent loss |
| Intra-Agency negotiations | negotiations between the agent and the project team (peers, supervisors, engineers, consultants, appraisers) The agent negotiates bot with the owner and the team. |
| **Conditions necessary for negotiations to proceed | 1. issues must be negotiable 2. Parties must be willing to negotiate 3. Parties must trust each other |
| **GOLDEN KEYS | 1. TRUST 2. COMMUNICATION 3. PREPARATION |
| **Roles of the agent | Company rep, acquis team mbr, negotiator, problem solver, communicator, facilitator, closer, other |
| characteristics of successful negotiator | credibility, power, courage, empathy, integrity/ethics, patience |
| credibility | the quality of inspiring belief and the negotiator demonstrates by being believable, & trustworthy |
| believable | factual, avoid jargon and technical terms, addresses problems directly |
| trustworthy | one of the most important characteristics, honest, treats all fairly, shows concern, respectful |
| POWER | not coercing (no use of force), legitimate, respect, charismatic (personality), expertise (know your level of expertise), situation (leadership appropriate to the sit), reward (offer things), knowledge is power |
| key characteristics of a successful negotiator | cred, power, courage, empathy, integrity and patience, good communication skills |
| What kind of ways can listening be? | active, empathetic and critical |
| empathetic listening | involves listening for understanding and providing appropriate feedback to show sensitivity to owner's feelings, thoughts, and experiences. |
| active listening | listen energetically and attentively. Listening is hard work and it requires full attention. |
| critical listening | requires you to listen carefully enough to identify underlying beliefs, attitudes, values, and assumptions. |
| how to know if someone is listening | cross legs do they follow, yawn, nod head, lean in |
| 2 techniques to critical listening | 1. paraphrasing 2. acknowledging |
| How long does it take to form your first impression of someone? | 30 seconds |
| How many basic needs do ppl have that must be fulfilled to survive and grow. | 1. Physiological 2. safety and security 3. social 4. Esteem 5. Self actualization |
| Physiological Need | food water air shelter |
| safety | safe, orderly, predictable, lawful and organized |
| social | love, affection, and belonging |
| esteem | achievement, mastery, independence and freedom |
| **Low level needs of Maslow Law | Physiological, safety and social |
| **High level needs of Maslow Law | Esteem and Self Actualization |
| What types of rewards are there? | internal and external |
| internal rewards | attention being paid to owner, a feeling of success or having knowledge that others do not have. |
| external rewards | amount of money offered, detailed explanation of need for the project, special benefits of the property. |
| Communication skills to be a good negotiator | listening, relat bldg, ask good questions, maintain relat, understand and share feedback, managing impressions and motivation |
| types of questions and probes | physiological, safety, social, esteem, self-actualization, internal and external rewards. |
| Attitudinal Approaches | 1. Shared frame of reference 2. Trust 3. Common Ground |
| 3 Negotiation tips | 1. Inquiry rather that advocacy 2. Communicate 3. Stage setting |
| Listening strategies | Focus, track, reflect, clarity, diplomacy, redirect |
| focus - what is needed | you have energy, a best solution |
| trac | encourage owner to keep talking, defer judgement, remain objective, be aware of owner biases, show non-verbal encouragement, ask about priorities |
| diplomacy | refrain from rehearsing responses while thy are talking, use encouraging remarks, be empathetic, avoid interrupting owner |
| **What are the steps in the funnel technique | 1. information getting 2. Information getting 3. Problem census 4. Problem Solving 5. closing |
| info getting | what does person know about the project, involve owner at the beginning of the process, benefit develops trust and rapport |
| info giving | agent present proposal, give info that owner needs to know about project, about impacts, about compensation and admin details |
| Problem Census | Owners list of concerns, wants and desires, if agree proceed to next step, if no agreement, what issues are outstanding. |
| Problem Solving | Search for solutions, make sure all items are discussed, organize items of disagreement from easiest to most difficult. |
| Closing | review issues and solutions, next steps, other closing techniques - escrow. |
| reverent power | is a fx of a consistent set of values or behaviors or norms. values and norms are voluntarily accepted for the good of the whole. negotiator's ethical behaviors represent the IRWA |
| legitimate power | when a person has legitimate responsibility and authority over another person. Fx of title and shows a respect for the law, tradition or established procedure. |
| critical listening | |
| common ground | mastering small talk |
| clarity probe | need when owner's response is unclear - I am not sure I understand. |
| Problem Census | |
| funnel gathering | general to specific |
| Integrative characteristics | inquiry, mutual interest, collaborative, win-win, trust, cooperative, willing to change, soft ball, acceptance, open communication |
| baraganing characteristics | advocacy, indiv positions, competitive, win-lose, distrust, adversarial, unbendable, hard ball, restrictive, |
| what does restrive agreement mean? | you must do certain things to get the ROW |
| zero-sum | means that one party’s gain is exactly equal to the other party’s loss. The total “value” in the negotiation is fixed—there’s no way to expand it—so any advantage you secure comes at the direct expense of the other side. |
| reward power | ability to give positive incentives or benefits to others. |
| Coercive power | is to use force or threat to compel the property owner to sign an agreement. |
| set standards | always show up on time, always follow through, always be professional. |
| when do we use intra-agency negotiation? | agent is part of team, open communications w/respect is present, clear understanding of the mission, agent given ability to advance interests, agent has good relat with mbrs of agencies. |
| Negotiation Plan Steps | 1. Analyze Project impact 2. Develop understanding of the owner |
| When someone wants to sign right away, what should you do? | Make sure they understand everything |
| analyze impact of project on property includes what? | utilities, traffic |
| getting to know the property owner | listen more than I speak |
| **BATNA | Best Alternative To a Negotiating Agreement. The best plan you can take if agreement cannot be reached. |
| 2 key approaches to promote understanding of the property owner: | Listening Orientations and conflict management styles |
| Listening Orientations | In order to have their message understood, the agent needs to understand landowners and their own listening orientation. |
| conflict and conflict management styles: | Avoidance, Accomodation, Competition, Compromise, integration |
| Conflict | disagreement or clash in wants, needs beliefs, opinions, interests, etc. |
| Avoidance | person works to avoid the conflict by ignoring the topic from the issue |
| Protects the status quo | avoidance |
| Accomodation | smoothing, the person seeks harmony over everything else. |
| Competition | person sees all conflict as a win-lose . One side wins and one side loses. |
| This overuse results in a loss of power | competition |
| compromise | Sharing, a person works toward mutual agreement usually based on a lose-lose assumption about the nature of the conflict. |
| give and get | compromise |
| which negotiation technique is more useful than others? | compromise |
| what is sometime known as a lose-lose result? | compromise |
| Charismatic | likability, ability to capture the imagination or inspire support or devotion. |
| situation power | when a person takes the opportunity to exert power in a particular situation--a demonstration of strong leadership skills appropriate to the given situation. |
| informational power | the ability to share or withhold information that is wanted or needed |
| Our Attitudes | influence and support effective development of a trust relationship and establishing rapport to set the stage for negotiation. |
| when are secondary questions used? | to check understanding, to confirm what was said, keep conversation flowing, |
| what do secondary questions start with? | do, did, are |
| completion probes | needed when the property owners response is too general, vague or incomplete. can you tell me more. |
| clarity probes | needed when the owner's response is unclear or does not make sense. I'm not sure I understand. |
| channel probes | needed when the response is an oversimplification or refers vaguely to another person as the source of the owners belief |
| irrelevant answer probes | needed when an owners response is unrelated to the primary question. |
| reactive probes | needed when a response is generalized and the agent is not sure how strongly the property owner do you feel about that? |
| non-responsive probes | needed when a owner does not answer the right ow way agents primary question. |
| People Oriented listeners | concerned about how listening affects relationships with others, listen in order to understand content and emotions |
| **characteristics of ppl oriented listeners: | take time to listen, non judgmental, open to ppl, |
| disadvantages of ppl oriented listeners: | may get overly involved, be more prone to lose objectivity. |
| If the owner is ppl oriented what should the negotiator use? | stories, examples, illustrations |
| action oriented listeners | focused on getting things done. bullet points |
| disadvantages of action oriented listeners | may get easily distracted or even upset with a disorganized owner, impatient |
| If the owner is action oriented what should the negotiator use? | present info in outline form with points-avoid too much detail |
| content oriented listeners | question information and data, note weaknesses and inconsistencies, critical |
| What is a disadvantage of a content oriented negotiator? | tend to hinder spontaneous discussions and creative idea. |
| If the owner is content oriented what should the negotiator use? | present pros and cons, site sources, |
| time oriented listeners | clock watch, efficiency and time,- negotiator may become impatient |
| If the owner is time oriented what should the negotiator use? | make sure to agree in advance on how much time is allotted for meeting. Keep conversation on track |
| **SWOT Analysis | Strengths, weaknesses, opportunities, threats |
| BATNA ALTERNATIVES | Bring in a different agent, a 3rd party |
| When to use BATNA | complex situations, lines are drawn in the sand |
| Possible BATNAs include: | condemnation, Alternate dispute resolution, arbitration, binding arbitration, advisory arbitration, mediation, Med-Arb, Fact finding |
| binding arbitration | the decision is binding on all parties |
| advisory arbitration | the decision is not binding on either party |
| WATNA | Worst Alternative to negotiate an agreement |
| alternative dispute resolution (ADR) | Uses a neutral 3rd party, judge, attorney, they offer various methods to resolve disputes. (Not binding) |
| mediation | 3rd party helps with problem solving. Parties have the right to make their final decision. Friends, family, supervisor - reasonable neutral. |
| advisory arbitration (essentially same as mediation) | Parties have the right to reject. Arbitrator's concern focus on both sides of what both sides are likely to accept. Arbitrator will use fact finding. arbitrator's advice has the appearance as binding but it is not. |
| Mediation | 3rd party as an intermediary to help problem solve. Parties retain the right to final decision. |
| Med-Arb - non attorney | 3rd party mediates first with both sides. If not successful arbitrator will rule on a binding decision. |
| fact finding | useful if the facts of a negotiation are in dispute. Finders will ask to make recommendations, |
| Consolation | fact finding that is a form of ADR |
| How do you use your BATNA? | research solution alternatives, assume what the other parties BATNA will be, mention alternatives step back before you sign and consider the alternatives. |
| Rules to effective negotiations | preparation, objectivity, negotiation strategy, negotiation techniques |
| attitudinal awareness | we are all impacted by things going on in our life. |
Created by:
delorya