Making a Bigger Better Pie
Make A Bigger Better Pie
By: Suze Cumming
Anyone who has taken a CNE course with us may recall this metaphor about collaborative negotiations:
Instead of fighting for the majority of a mediocre pie, you can make a better one.
After all 50% of this:
Gives you more than 60% of this
And if you end up with 55% of the bigger pie, even better.
It's easy to fall into the trap in negotiations of believing that the only way to get more for your clients is to take it from the other side- but negotiations can be about so much more than that.
Opportunities to make a 'better pie' in Real Estate negotiations come from understanding what is important to each party so that you can create beneficial compromises on each side.
So how do we get back to doing this?
1. Pay attention to more than just price
Negotiating on price alone doesn't leave you much freedom, and misses all of the reasons that price might not be the most important thing to people. There are so many factors that influence people needs and wants when it comes to buying or selling a home, and understanding these gives you the freedom to get to a win-win
2. Get beneath the Stand
In the CNE courses, we cover the Sam Model. A stand is almost always what shows up first: "I won't sell my house for less than x", "My clients need to close on this date" etc. If you can get beneath the stand, by asking questions, you have more information to use in trying to find the balance of what everyone needs.
3. Think about both sides
Instead of focusing only on your needs, and the needs of your clients, try to understand what is happening for the other side. Essentially this is Empathy- it's a big topic, but an important one.
To negotiate collaboratively means we're adding value to the market, rather than just moving it from others to our clients. If you can consistently do this, you will make a great name for yourself. If we can all do this, we can make a great name for the industry, maintaining its relevance in a quickly changing world.
Like making an excellent pie, collaborative negotiations take a higher commitment to skill and excellence than fighting over a bad pie. But in both cases, it's worth it.