_{Presented by Astra Properties LLC}
Mastering Persuasion: Key Strategies for Winning Real Estate Negotiations
_{By Nicholas Burrus · 12/20/23
Thanks for tuning in todays read! Read time is roughly 7 mins.}

Welcome back and thanks for tuning in 🌅 

Christmas is upon us; 5 days to be exact - make sure your list is ready for Santa 🎅 

Today we’re talking about the art of persuasion - how to be good at negotiations.

How do you get the best price on a property?

How do you make people accept the terms you want?

Today we’ll find out.

What skill will bring you to the closing table? 🚪 

Part of the fun of real estate is meeting sellers and putting together deals that are beneficial for both parties.

But you can’t put the best deals together if you don’t know how to negotiate.

The art of persuasion is an art and a science. 

As a science, you have to be strategic with your approach to get the best outcome.

As an art, you have to practice your negotiating skills to become better at it.

Negotiation Tips

Whether you are a sales broker representing a client or an investor buying your next asset, you must be able to negotiate effectively.

Make that sale with these tips:

Don’t start with a strong push 📌 

Setting a calm, courteous, and collaborative tone in a discussion will definitely lead to better results.

The other side is a person who, just like you, wants to be heard.

Let the other side express what they need from the deal and listen.

Paraphrase what they say so they know you listened

Listening will help you understand their motivations and priorities so you can offer a proposal that aligns with their objectives and reach a mutually beneficial agreement.

You’ll also figure out how serious they are about their asking price or if you can persuade them to come down a bit.

Once their cards are on the table, you can figure out how to structure the deal from there. 

Negotiate the fine details 🤌 

Negotiations aren’t strictly about haggling over the sale price of a property.

Deals have many moving parts; terms and contingencies need to be discussed and agreed upon before sealing the package.

The price is important, but things like the rate you’ll have for the asset, tenant issues, price adjustments based on inspections, the list goes on.

The finer the details, the better you’ll be at the end.

Successful negotiation is about satisfying mutual interest 🙌 

Closing can be complex, but most of the time emotions are the reason for the complexity.

Things might come up that require you to adjust or change a term, but that doesn’t mean it needs to become a hassle.

You might not agree with the other side on everything, but you have to agree on something.

Instead of chasing after a sale, find other aspects of the deal that both parties can agree with.

Identify mutual goals or interests to build a positive relationship with the other side and use these to come to a favorable agreement. 

Everybody wins!

Don’t rush the process 🏃‍♂️ 

Forming a relationship takes time; do not rush the process.

Some deals take a few days to put together; others take months of going back and forth.

Keep your expectations open. 

Why?

Deals can go through waves of renegotiation and counteroffers. This goes especially for acquiring commercial or higher-end properties. 

Instead of looking for a quick conclusion, present the best solutions to the other party.

Adjust your expectations and be willing to collaborate with the seller (or whoever) to reach a deal that’ll satisfy both sides. 

Keep your emotions in check ✅ 

Negotiations can be an emotional process, and part of the job is knowing the emotional dynamics during negotiation. 

When emotions are high, people lose their heads. You can’t control how the other side reacts in a discussion, but you can control your feelings.

Only worry about things in your control - Meditations by Marcus Aurelius in a nutshell

You can be a hard negotiator and a respectful one.

If the tough gets going during negotiations, look for a better settlement. Don’t let anyones temper tantrums throw you off your game. 

Set your priorities but learn to compromise 🤝 

You might have your goals, but the other side also has their own goals and expectations.

Successful negotiations are also about compromise. 

Set your goals, be clear about your non-negotiables, and what you’re willing to settle for in its place.

Think about what you hope to achieve to navigate the conversation and find ways to move forward with the agreement.

Always strive for mutually beneficial solutions, and don’t forget to get everything in writing ✍️ 

Now go out there and close 🙂 

💫 What Else is Poppin? 💫 

The malls are back in business thanks to Gen Z shoppers

Gen Z is changing holiday shopping trends by braving the malls for holiday shopping

‘Tis the season for shopping, and while many go online to buy gifts and avoid the holiday rush (looking at you, Millenials and Gen X) Zoomers are kicking it old school by going to the mall 🤯 

That’s right, over half of young shoppers aged 18 to 24 years prefer a more hands-on interaction with products by braving the holiday traffic, going to stores, and interacting with products in person.

amazon is in shambles (not actually)

Gen Zs are also keen on taking advantage of holiday sales and discounts to save up on gifting.

This makes total sense since shoppers are spending less on gifts this year, compared to last year.

The trend is surprising, considering how the young generation grew up with purely digital interactions on social media platforms like TikTok, Instagram, and Facebook. 

Gen Z’s shopping behavior is also reshaping retail spaces by combining in-store shopping with online browsing. 

To take advantage of younger shoppers changing shopping behavior, many operators and retailers are teaming up with big brands to encourage “immersive experiences” and bridge the gap between Gen Z’s online and offline shopping behaviors.

Meanwhile, Millennials and Gen X are still holed up at home doing their shopping online.

Millennials are leading the pack in terms of spending, with 48% planning to spend more this year, up from just 29% last year, versus just 29% of Gen X and 21% of Boomers.

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