Wednesday, May 07, 2008

See the World From Their Shoes, Don't Feel Their Pain

by Osman Parvez
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At Realty Unique, we do a lot of negotiation and leverage our skills to benefit our clients. We also constantly seek to improve by studying the art of negotiation. Last week, I came across a good piece on two negotiation tactics and their success rates in The Economist. I thought it might benefit the readers of the blog.

The article focuses on two common tactics; empathy and perspective. Empathy is the ability to connect with your counter party emotionally. Perspective is the ability to see the situation from their point of view. Good negotiation usually includes elements of both but I was surprised at the advantage perspective has on the success of negotiation. If you're looking to hone your negotiation skills, you might enjoy the full article.

Here's a few key points (via selective quotes):

When the buyer in particular had a perspective-taking ability it could predict a successful outcome. It was the pair with a perspective-taking buyer who were more likely to strike a deal (76%) than the empathisers (54%), followed by the control group (39%) Even with one negotiator having perspective-taking abilities it can produce a better overall outcome for both sides.

“You want to understand what the other side's interests are, but you do not want to sacrifice your own interests,” says Dr Galinksy. “A large amount of empathy can actually impair the ability of people to reach a creative deal.”


image: salimfadhley




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The ideas and strategies described in this blog are the opinion of the writer and subject to business, economic, and competitive uncertainties.   We strongly recommend conducting rigorous due diligence and obtaining professional advice before buying or selling real estate. 

2 comments:

  1. In a typical real estate transaction there are 4 parties. The buyers and sellers have direct interests and emotional investment in the outcome and their agents not as much.

    What is the right role in the negotiating process for the agents?

    Unlike the buyer and sellers who most likely will never do business with each other in the future, the two agents are bound to meet and the reputation and track record is key since the news about tactics spread quickly.

    Should they leave all negotiations to the principals? Do they?

    By the way, good work with the blog.

    ReplyDelete
  2. Great comment. It deserves a post of its own. I'll write a followup tomorrow.

    ReplyDelete