Friday, February 12, 2016

Negotiating On Your Behalf


The new year appears to be kicking-off where 2015 ended. There was another rise in pending home sales in January and the inventory of homes for sale remains low at just 1.8 months (a more balanced market would have between 4 to 5 months). The continued demand combined with very few homes for sale should maintain an upward pressure on home prices. Market reports suggest a rise of between 3 to 4 percent for 2016.

The average price of a Portland home is currently $355,500 - an increase of 6.7% over the past 12 months, and a combined 30% over the past 3 years!

Click here for market information including your neighborhood.

Negotiating On Your Behalf

I recently completed a real estate course on Negotiating.  "Negotiation skills are the bread and butter that lead to caviar and champagne."  So, I thought I'd share with you some tips that might benefit you.

First, let's identify the two leading Negotiator styles -

A COLLABORATIVE negotiator will have a win-win mindset and focus on interests rather than position, be open to explore alternatives, and will have interest in building trust to meet a better ending. A collaborative negotiator will ask questions, and generate positive emotions.

A COMPETITIVE negotiator will have a win-lose mindset and focus on their position, hide information, may speak aggressively, and likely have little or no interest in building trust. A competitive negotiator may use intimidation tactics to pressure the other party into agreement.

A most effective negotiator can be Collaborative and sometimes use Competitive “tactics.”
Do you see yourself in either of these descriptions? Keep reading to sharpen your Negotiating skills.

Characteristics of a Skilled Negotiator

Skilled negotiators ask questions, speak positively, explore options, plan ahead and stay organized, argue less, negotiate from a position of strength and moral code, and have a win-win mentality.

Tips to Becoming a Skilled Negotiator

Remain emotionally rock solid - like the storm chaser who flies into the eye of a hurricane, remain calm, cool and steady. Manage your emotions. And please, don’t fly into the eye of a hurricane :).

Be funny - generates higher levels of trust and mentally disarms people.

Be willing to walk away - single most powerful element of negotiation.

Let the other party speak first - giving you the ability to define the mid-point of the negotiation.

Know your leverage.

Be nice, polite, and optimistic.

Listen more, talk less - learn to “pause” in a conversation.

Constantly seek common ground.

Always get the last concession - by always asking for, and getting something in return, the other party may shy away from asking for more. Might work with your kids or parents.

Check your ego at the door - stay focused on interests, not positions. Stay collaborative.

There is much more to all of this. The bottom-line - helping you reach agreement on the sale of a property, and maximizing the outcome for you. Surprisingly, the National Association of Realtors says only 5% of home sellers want help in negotiation and dealing with buyers while 99% of buyers believe Negotiation Skills are important in their purchase.  Either way, I am ready and better educated to help you.

Hope this helps. 

Mortgage interest rates have fallen below 4%.  Call Brent Schreiber with Consolidated Community Credit Union at 503-872-9455 if you think it’s time to refinance or buy. You’ll be happy with Brent’s experience and commitment to serving his clients.

Call me when it’s time to buy or sell a home. I’ll work hard for you!

Darin Provost, Broker
Portland Digs Real Estate