Negotiation can be a very interesting thing to watch, but if you are a participant it can be extremely nerve-wracking. What can you do to help calm your nerves in these types of situations? The best think you can do is observe others during the negotiation process. If a friend or family member is going to buy a car, go with them and watch them negotiate. Watch the news for any international disputes or negotiations within the government. The more you observe, the better you will be in the negotiating process.
The 80 – 20 Rule has many applications in negotiating. The most important is that 80% of the movement typically takes place in the last 20% of the time. What that means is, negotiations normally start out slow and then accelerate towards the end, leaving both parties feeling very tense. It is best that you remain aware of the 80-20 rule so you can use your best negotiating skills during the last 20% of the time which is when most of the concessions take place. Although it may be tough, try and save most of your risk-taking for the end of the negotiation. You are more likely to come out on top in these situations. Those with the most patience in the beginning of the negotiation and take the most risk towards the end are the ones with the most power in the end. This negotiating tip can help with anything, not just buying a house!
If you are in the buying process and receive an extremely outlandish offer that you know only one party (the opponent) would benefit from, do not be quick to counter. There is a technique. You must remember that your opponent is trying to see where you stand and how serious you are about buying the property. Know that this will most likely happen going into the negotiation process. Plan your response ahead of time so that it will run smoothly. Remain calm and deliver a very precise rebuttal. End your response with a challenging statement. Do not be afraid to call them out on their actions. Explain to them that the offer they have provided you is clearly only benefiting them and ask them why? This forces your opponent to sell the value of their proposal.
This technique will “put your opponent in your shoes” so to speak and force them to look at things from your perspective. Once they start trying to justify their price (which they most likely already know is outlandish) they are more likely to begin to counter offer. Be patient in waiting for their response. If they choose not to respond, it is probably best to walk away from the situation at hand.
In any negotiation, both parties are looking for a win-win situation. So, do not be afraid to challenge your opponent and make them explain their proposals.