NEGOTIATIONS PART 1:

EMOTIONS OF THE DEALTaken from the NAR Negotiations Tookit

UNDERSTANDING MOTIVATION

customers are motivated by a range of physical and

psychological needs.

These needs are not usually stated

Salespeople who understand what these are can help guide

clients through decision making before hitting negotiation.

ABRAHAM MASLOW’S PYRAMID OF

HUMAN NEEDS

According to Maslow,

motivation moves up the

pyramid; you must satisfy

the more basic needs

near the bottom of the

pyramid before you can

work to satisfy the needs

at the top.

HOW IS THIS HELPFUL IN REAL ESTATE?

Pinpointing the major motivating factors of a client may help you better understand what he or she wants in a home.

CUSTOMERS MOTIVATED BY THE NEED

FOR SHELTER

People who have experienced poverty or had significant

fluctuations in their finances.

Buyers seeking homes with sound structure and basic facilities.

Buyers seeking homes at the lowest possible costs.

Those who want to live in close proximity or a convenient

location to their employment

CUSTOMERS MOTIVATED BY THE NEED

FOR SECURITY

Sellers who are reluctant to leave a home where they have spent

many years.

Buyers looking for adequate privacy for their family.

Buyers looking for homes that provide freedom from

environmental hazards and market uncertainty.

Those who want the ability to exercise control over their

environment.

Older owners who have lived in their home for long periods.

CUSTOMERS MOTIVATED BY THE NEED

FOR AFFILIATION

ers who want to live in an area near family and friends.

Sellers who want to move to an area near schools and activities

for their children.

Buyers with strong ties to schools or other community-based

organizations.

Buyers who want to find a home with socially compatible

neighbors.

CUSTOMERS MOTIVATED BY THE NEED

FOR ESTEEM

Move-up buyers who want a larger home as a representation of

their success.

Buyers looking for an attractive house with nice landscaping.

Buyers seeking a prestige address to grant pride of ownership in an appreciating asset.

Buyers who find pride in owning their own asset.

CUSTOMERS MOTIVATED BY NEEDS

FOR SELF-ACTUALIZATION

Vacation or second-home buyers.

Retirees, who no longer need to live near their workplaces.

Luxury homebuyers.

Buyers seeking recreational factilities in/near a home

Buyers looking for a home close to cultural/recreational sites

Buyers who want a home that is an expression of their specific

values.

WHAT MAKES A CLIENT TICK?

THREE-STEP APPROACH TO FIND OUT WHAT'S

IMPORTANT TO CLIENTS.

Observe. Pay attention to details of personal appearance

and speech that offer clues to a client's values and

motivations.

Listen. Supplement observation with information by asking

open-ended questions that elicit revealing responses: "What

are you looking for in a home?" or "What are your main

concerns in selling a home?"

Create choices. To get a feel for a client's hierarchy of

values, offer comparison choices. If the buyers want an energy-efficient home that's located close to their family,

ask them which feature would be most important to them if

you could not find a home that had both in their price

range.

Keep It Ethical

Analyze, but don’t judge.

Salespeople must offer

equal services to all under

the Fair Housing Acts. —

Article 10

DEALING WITH EMOTIONS: 5 TIPS FOR

DEFUSING EMOTIONS.

Recognize and understand your emotions and those of the other party. Ask yourself what is producing them.

Make emotions explicit and acknowledge them as legitimate. Talk about your feelings and encourage others to do likewise.

Allow the other side to let off steam. Listen quietly and encourage others to keep speaking until they vent their feelings.

Don’t react to emotional outbursts. If one emotional outburst leads to another, the situation could spin out of control.

Use symbolic gestures. Small acts, such as offering an apology, shaking hands, sending a short note, or eating a meal together, can smooth ruffled feelings and pave the way for positive discussions.

Experts from The

Program on

Negotiation at

Harvard University

EXPRESS EMPATHY

I understand

I know what you mean

I’ve been there

I know what you’re saying

I sympathize with that

I know the problem well

You’re right

I agree

I see your point

That’s only right and reasonable

I’m with you 100 percent

When you have to stick to a difficult negotiating position, try

showing empathy with the other party by using key words and

phrases such as:

BODY LANGUAGE

57 percent of your message is received through body language,

36 percent through tone of voice, and only 7 percent through

the actual words.

Body language is an important element in negotiation. Use it to

convey your message to the other party, and read it to gain

insight into what other people are thinking.

HOW CAN A SALESPERSON TELL IF PEOPLE ARE

RESPONDING POSITIVELY OR NEGATIVELY TO AN OFFER? BODY LANGUAGE

Look beyond the words

Facial expressions

Seating posture

Gaze of the eye

Does the client appear bored or inattentive (no eye contact, looking around the

room) or actively involved and cooperative (sitting forward, listening)? Repetitive

gestures such as touching the hair, adjusting eyeglasses, or drumming fingers suggest

that the client is feeling anxious while disagreement may be indicated by a person

sitting back in the chair with arms folded.

HOW CAN A SALESPERSON CONTROL

BODY LANGUAGE TO BE A BETTER NEGOTIATOR? BODY LANGUAGE!

Get comfortable with yourself

Make sure body language, their words, and their

tone of voice are all congruent.

https://www.youtube.com/watch?v=ZZZ7k8cMA-4

Nonverbal messages

evolve from an inner

sense of self-esteem,

so better body

language must come

from the inside.

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