Six tips to negotiating a commercial property deal
You know, I'm always intrigued how many investors place little or no importance upon the skills required to put together a top property deal.
They will spend plenty of time researching the market and arranging finance but will often get emotionally involved and want to conclude the negotiating phase as soon as possible.
1. Remember, it's just a deal
Therefore, never allow yourself to become emotionally attached to whatever you're negotiating for. You need to care — not that much!
Otherwise, you'll end up over-paying for that property.
2. Information is the key
The more you know about the other party's needs, wants and aspirations, the greater your strategic advantage becomes. And the secret is to discover all of this before the formal negotiation actually begins.
3. You always have some degree of power
Power is very much based on perception. And simply creating the illusion of having other options will always make whatever you're proposing seem far more appealing. But there are several other aspects of power you can easily master as well.
4. Gain from their investment
The more you can have the other party make as an investment of their time, money or effort into the deal, the more unlikely they are to walk away from your final proposal when the time comes for you to make it.
5. Time can change everything
Most beginners tend to treat negotiating as an "event". However, the pros realise that it is very much a "process".
And the closer you can move the other party towards their deadline, the larger will be the concessions you start receiving from them.
Bottom Line: You need to be able to treat negotiating is a game — a very serious game! But a game nonetheless, with its own set of rules, which you can very quickly learn.
Chris Lang is an advisor to commercial property investors and gives keynote speeches and regular seminars on the best way to invest in commercial property. He maintains a blog, his-best.biz, which he updates regularly about the best way to get the most out of your commercial property investment.