In Negotiations Part 1, we discussed the parties you must negotiate with as a real estate professional. Today, we’ll look at the negotiation styles these parties might display, covering the three basic styles you might encounter and providing mechanisms for working with each successfully.
Basic Negotiation Styles
You can break down negotiation styles based on how the other party interacts and communicates with the world around them. The three basic negotiation styles are Compliant, Collaborative, and Competitive. There are also extremes of each type, which we will, for now, label “Difficult.”
You may be unable to identify your customer’s or opposing party’s negotiating style in your initial conversations. Still, with intentional practice and skillful questioning, you can determine the kind of negotiators assembled at the virtual table. Once you identify them, the tips below will help you move forward with each.
Build Trust With a Compliant Negotiator
Compliant negotiators are eager to trust and prefer to avoid conflict. This means they will quickly comply with the terms proposed. They focus on other people’s needs and may give away power because their primary motivation is to be liked. Do not mistake their compliant nature for lack of awareness. A compliant negotiator can be detail-oriented, analytical, and conscientious, and opposing parties will not necessarily be able to take advantage of their nature for concessions because they will discern the deal’s shortcomings.
Here are some tips for dealing with a compliant negotiator:
- Limit Information. Only provide the information they ask for. Don’t overshare; they can easily catch a whiff of crucial details that may tip the scales in their favor.
- Built Trust. Compliant people trust easily, but you have to build it up first. How? By being an ardent listener and acknowledging all points raised during the negotiation process. Suggest viable options that would provide an obvious advantage for them. More importantly, share and meet expectations to have a long-lasting business relationship.
- Offer Positive Comments. Compliments, positive notes, and feedback during your talks will go a long way. But don’t overdo it because they can tell if you are being genuine or not. Create a bond by using sameness and contrast in the process.
Mirroring Works With a Collaborative Negotiator
A collaborative negotiator wants to share power while aiming to influence and persuade. They tend to be unselfish and focus on both sides in the interest of fairness. They look to build trust and are likely to be dynamic and flamboyant during negotiations. Many questions will be asked and answered in a collaborative negotiation, and both parties should be willing to share information. It is the best negotiation style on paper as it usually ends in a win-win.
Some tips for dealing with a collaborative person in negotiation:
- Mirroring. Mirroring involves copying the voice modulation, body language, and attitude of the person you are communicating with. In business, mirroring is done to gain power or advantage. Collaborative negotiation is a great way to end up with a compromise.
- Build Trust. Collaboration is about trust; build trust by sharing information, meeting expectations, and settling concessions is crucial. Reducing or eliminating control is another way to build confidence, as collaborators are willing to share power.
- Appeal to Their Sense of Fairness. Leverage self-interest for both parties at the negotiating table. If one party gains something, so should the other.
Don’t Be Intimidated By a Competitive Negotiator
What type of negotiation tactics do you use when facing a competitive person? They are motivated by winning. They want control and have no qualms about abusing power to gain it. They are selfish and use as much time at the negotiating table as possible to advance their demands. Yes, they demand rather than offer deals. They often have a take-it-or-leave-it attitude. You need skillful use of numbers in competitive negotiations. You must master lowball and highball deals because a competitive person will do everything possible to win. Here’s how to deal with a competitive person in negotiations:
- Don’t Overshare Information. Don’t give the competitive negotiator too much information—they will use it as ammunition to dominate the process. Just give them enough to stew over a deal. You should provide misdirections, but not outright lies. You can bluff, too, as the other party will likely do the same.
- Don’t Take Abuse. Competitive negotiators are not above abusing their power to get ahead. They are also quick to anger. You don’t have to take any of it. Don’t flinch amidst their intimidating tactics.
- Appeal to Their Ego. The goal is to leave with something at the end of negotiations. While you should not bow down to a competitive person’s bullying, you can stroke their ego to get something good for both sides.
Understand Difficult People in Negotiations To Appeal to Their Characteristics
Difficult people can be classified as intimidators, know-it-alls, or wafflers.
Intimidators are extreme versions of the competitive negotiator. They create difficult situations and use every trick in the negotiating book to bully you into giving in.
Know-it-alls will throw a lot of intelligent-sounding information without verifying it’s true.
And wafflers may be easy to deal with one day and troublesome the next.
You need to be versatile in dealing with difficult people. Most importantly, you must be patient. They may lobby personal attacks and use psychological warfare to make you agree to their way of thinking. They may even refuse to negotiate and walk away.
You can deal with a difficult person by doing the following:
- Understand What They Need. Appeal to their sensibilities without giving in to their whims. For example, know-it-alls thrive in thinking they know better than others. So, don’t try to outdo a smart aleck.
- Stand Your Ground. Intimidators want to get the best of you. Stand your ground without being aggressive. Be low-key yet firm. This is also important when dealing with wafflers because they change their minds regularly. Remind them of previous statements when they drift from the point.
- Bring Solutions to the Table. When difficult people become more challenging to communicate with because of their tactics, put a solution on the table. This will put you in a position of strength. There’s no guarantee they will agree, but it may start a more productive conversation.
Negotiation is part of our daily life. We negotiate for promotions and higher pay at work. We bargain for time with family. And we haggle at the farmer’s market. It is a helpful skill to master. But negotiation isn’t black and white. It is a gray area as you must deal with people with different personalities and negotiating techniques. The first step to a successful negotiation is to know who you are dealing with. Are they difficult or collaborative? Compliant or competitive? Get the answer and get ahead.
If you have any questions about improving your negotiation skills, please text or call (239) 220-1018.
