No matter if you are buying or selling a home you need to be able to properly negotiate in order to get or save the most money possible. The way that you present yourself in any negotiation will affect the outcome. No matter who you are or how much experience you have, there are certain things that anyone can do to allow negotiations to work in their favor!

 

Rule #1 – Play dumb!

Despite what you may think your best bet in any negotiation will be, knowing everything you can about what will happen and pretending that you know less than everyone else there. If you are wondering why you should play dumb it’s simple. People automatically feel guilty about taking advantage of someone that knows less than them.

If you are asking the other party what common negotiation terms mean and to go over figures numerous times they begin to think they are dealing with someone less than sharp.

If you continue by saying you need time to decide or need to have someone read your contract for you, this inadvertently places some sense of the power in your hands because people can’t take the upper hand from someone like that. There are two reasons for that. The first is that most people are empathetic to others that are in the same business and obviously need help and the second is that it is hard to take advantage of someone that is at an obvious disadvantage.

Despite what you know bluffing will give you an upper hand that the sharp, sweet talking business man won’t have. Instead of people wanting to defeat you, they will end up trying to help you instead.

 

Rule #2 – Think issues and forget the rest

To put it in basic terms the best thing that you can do for yourself is to think about the issues and nothing else. It is not important what the other negotiator is doing. It is only important that you know the facts and what you want.

You would be surprised what you can get the other side to do with the proper negotiating skills. With that in mind the best way to do that is to think positive and never lose sight of the initiative. If you go out looking your best with intent to get what you want to see that your negotiations pay off then you will succeed. Always remember that it is not important what the other side is doing, it’s what you want and your facts that matter.

 

Rule #3 – Get the other side to commit before you

There are many reasons where this will benefit you and they are all very logical reasons. First, the initial offer many be much better than you had hoped for. Having the other party come to you first will also allow you to have more information about them at hand then you would have had if you threw your offer out first.

It is important to let the other person come to you because based on their offer you can set up a proposal to see that you get what you want and need out of the deal. Sure, you won’t be able to sit around forever and wait for someone else to make an offer, but if you can wait, it will give you the edge you need to find out what the other side wants and how you can get what you want as well.

 

Rule #4 – Talk in small money terms

If you go to the store to purchase a product that you buy regularly and there is a price increase the store will not tell you “You will spend an additional $500.00 a year on this product.” What they will tell you is “There has been a .25 cent increase.”

The reason is simple. 25 cents is obviously a lot less than 500 dollars. Most people will not stand and do the math to realize how much something is going to add up to in the end.

The point is simple. If you break the price down so low that it seems like nothing, most people will see the point that it is. Paying .37 cents a day for something isn’t nearly as damaging to someone as paying thousands of dollars a year. Showing the ridiculous side of the deal with often times make it easier on you.

 

Rule #5 – Always show praise to the other side

No matter if you win or lose you always want the other side to walk away with your praise and thanks. Tell them that you hoped to get a better deal but it was worth it to see them in action. Tell them you learned a lot from them and thank them for everything they taught you while you were negotiating with them.

You want to make the other side feel good. You want them to think they have come out a winner. If you offer them congratulations and they think that they won then you have had a successful negotiation and they will continue to get better.

Following these five rules will make most negotiations go smoothly. Just remember think about what you want, visualize it, and never lose sight of it. Once you realize your true goals, negotiating will be a piece of cake.