When it comes to negotiating in commercial real estate agency today, you will hear all types of objections from sellers, buyers, landlords and tenants. Top negotiators and top agents take particular steps to ensure that any objection is heard and processed effectively. They are prepared for the task of negotiating.
There are so many potential objections for any given property, you can only prepare for the obvious ones. This then says that you should have a strategy that you can use for unusual objections and circumstances that you have been unable to predict. You need to move through the problem presented to you and control the stages of interaction with the parties objecting.
Here are some tips to help you handle those objections that come to you as part of commercial property marketing, inspecting, and negotiating.
- Always let the other person fully explain their position. Hear them out and get all the facts. Let them give you the complete details of what they understand and what they require. Through asking questions, you can get closer to the ultimate solution or resolve.
- When the other person has explained their position, restate it back to them in a way which shows your understanding. That will allow you to position yourself for the next stage of the process. Get them to agree that you fully understand their position before you proceed. Let them see that you know what they are saying.
- You can now ask deeper questions relating to their situation given that you understand what they are thinking. Market trends and information will give you the confidence to ask questions of their intentions in rents or prices as the case may be.
- Any objection will have one or more solutions. It is a matter of identifying the best solution to bring the parties together; tell them about the solution as you see it. Understand the alternatives that can apply in price adjustment, contract terms, rent adjustment, lease terms, and lease incentives. With most negotiations there are usually a few things that you can work with to give alternate outcomes to the objecting party.
- In this property market, the level of inquiry has lessened to an ordinary level. This then says that we must 'do more with less' when it comes to the average property negotiation. Most clients and prospects know the true position of the market and will work with you to achieve a satisfactory outcome. The reality of the market can not be ignored. Negotiate from a position of reality.
- As you draw near to resolving the situation or negotiation, confirm the facts between the parties and get any offer or counter offer situation in writing. The commercial property market is based on commitment. Get the parties to commit to the negotiation through putting it in writing.
- Move the agreement ahead through timely action. 24 hours can be a long time when it comes to a property negotiation. 'Strike while the iron is hot', as they say. Do not give the parties the opportunity to change their minds and 'shift the goal posts'.
Objections will always happen, so prepare for them where you can. For those new and unusual situations that can come up, have a plan similar to the above where you can talk through the challenges and reach a satisfactory resolve that makes sense to all parties to the sale or the lease.