Six final questions to ask yourself before commercial property negotiations

Last week I discussed 14 questions you need to ask yourself before beginning any negotiation. Here are a final six. Are you…

1. Remaining professional?

You simply can't afford to lose your temper and still retain respect, from the other party.

People can be insulting, and it is all too easy to respond aggressively. But sometimes they're just doing that to test you, or your patience. So you may simply need to suggest adjourning the negotiations to give them a chance to regain their composure.

If it is a genuine outburst on their part, they can cool down. And if it's merely a ploy, they're going to look rather stupid.

2. Aware of the benefits and consequences?

You need to try and understand the benefits and consequences for each party in the negotiation.

Only then can you properly decide when (and how) to make any concessions, also when (and how) to stand firm, with your own needs and requests.

3. Employing the power of silence?

Work on becoming comfortable with silence. Most negotiators feel the need to jump in with some comment whenever there is an awkward pause in proceedings.

But whenever the answer to your question will actually commit the other party, say absolutely nothing more. Otherwise, all you'll get is further conversation.

4. Avoiding on-the-spot decisions?

Never commit on a major point unless you are quite sure of your answer and you're on solid ground.

No matter what the pressure, all you need simply say is: "I may need to sleep on that, I'll get back to you tomorrow".

5. Considering the telephone?

By choice, negotiations should commence face-to-face.

However as things progress, you'll sometimes find more progress can be made by phone — because it takes out all the emotion and allows you to simply focus on the rational items, rather than any personal issues.

6. Documenting the final agreement?

Sadly, too many people leave the negotiating table with only a handshake. A short summary (by way of "heads of agreement", a confirming letter or an email) is all you need to tie down the deal.

You need to have some form of documentation at the end, if this is a serious negotiation.

What you might say is: "Let's make a few notes on the points we have agreed for each of our files and just initial it."

This is vital. It provides a basis for the contract to be prepared. And when the contract arrives, you can confidently say: "That's not what was agreed."

If you both have the same set of notes, it's easy to verify that the contract has been drawn incorrectly.

Otherwise, you'll quickly discover how recollections can often change — between reaching agreement and the formal contract emerging. As a result, you are forced to restart the negotiation again.

Bottom line: I hope this has helped you to gain a complete "helicopter view" of how each component of a negotiation ties in with all the others.

And with the framework at your fingertips, you are now better equipped to tackle your next negotiation.

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.