The art of negotiation can be honed in many different ways.
For me, I believe that years spent on the professional tournament poker circuit has created a unique approach to negotiating. Whether the correlation between the two is about pricing, not revealing strategy, or staying patient and lying in wait, I believe that the skills need for success in poker and in negotiating are directly related.
It is important in real estate negotiations to distinguish between the normal representation scenario and one where you hold a dual agency. In a dual agency, a situation where the broker represents both sides of the transaction and where there are far more requirements to maintain clear and open communications, the negotiation is more of a search for the sweet spot. In this scenario, the broker is trying to find a middle ground where both parties are satisfied.
In a normal deal, where the broker represents only one party to the transaction, the art of negotiation can take its true form. In this situation, the broker is attempting to garner the best deal possible through every step of the negotiation process. From the very first interaction it is essential to not reveal your client’s motivation and eagerness as this may prove counter-productive to achieving the best price. Once an initial offer has come in or gone out, to a limitless round of back and forth, and eventually to an agreement, there are a multitude of factors that a broker should consider in pursuing his client’s best interests with the end game being the most optimal deal possible. From personal experience I believe that my years in the poker world have helped hone some of the skills that are necessary to be successful at the negotiation table.
Learn more about Robert Edelstein.