Do you enter into the negotiation process with a homebuyer, fully prepared to get the best value for your builder or developer? Or are you shooting from the hip, relying on your past experience to close the sale?
If you’re taking the second option, chances are that you are either not closing as many deals as you could be or you are giving up too much—and neither one is a successful outcome.
Successful negotiation is all about preparation.
Abe Lincoln observed, “If I had eight hours to chop down a tree, I’d spend six sharpening my axe.”
And Muhammad Ali said, “I run on the road long before I dance under the lights.”
Before you being the negotiation, recognize that both sides want something. Your buyer wants the home and you want to sell it to him. Your goal is to make that happen in such a way as both sides walk away feeling good about the final outcome.
Your customer walks into the room, armed with questions and probably knows the answers he wants. He also knows the deal he hopes to get from you. He has a list of add-ons and a price in mind.
Are you prepared to counter his objections with a reasonable response? Do you know in advance what concessions you can make, if necessary, without killing the profitability for your client? Have you familiarized yourself with this customer so you are prepared to address his concerns? Are you confident that the compromise you are offering reflects the true value of the home?
Sure, you can shoot from the hip, but if your aim isn’t sharp, you might shoot yourself in the foot!