159: Real Estate Negotiation with the American Negotiation Institute’s Founder, Kwame Christian

Negotiation is a substantial part of real estate and investing. We discuss exactly what you do when the tenant wants to pay the rent late. I tell you exactly how I negotiated the price and terms on the very home that I live in today! Then our guest, Kwame Christian, Founder of the American Negotiation Institute joins us. He defines negotiation as “A conversation where somebody wants something.” Three uses of negotiation: 1) Use offensively. 2) Use defensively. 3) Strengthening relationships. We discuss how you negotiate in a way where you keep a strong relationship with the other party, rather than alienate them. We talk about how to motivate your Property Manager to work hard on your behalf. In negotiation, let other party speak first. Let them make the first offer, except when you have more information. We discuss midpoint negotiation. “Anchoring” is an important part of negotiation psychology. This can help you get a better deal. Kwame and I discuss what people will pay what an item is worth to them, not you. But what about sentimental value and sunk cost? In a real estate sellers’ market, should you ask for more than you expect, or only what you expect? Learn about the negotiation techniques of “log rolling”, multiple offers, and “always get the last concession”. We discuss introverts and negotiation. Negotiation is a learned skill; it is not innate. Learn exactly what to do to become a better negotiator in just the next 24 hours. In negotiation, where do ego and emotion fit in?

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01:22 Negotiation technique for a late-paying tenant: say these 7 magic words.
03:38 How I negotiated the price and terms on the exact home that I still live in today!
08:49 Kwame Christian interview begins.
10:01 Definition of negotiation.
11:38 Three uses of negotiation: 1) Use offensively. 2) Use defensively. 3) Strengthening relationships.
13:48 How to motivate your Property Manager to work hard on your behalf.
16:40 Let the other party speak first.
19:00 Midpoint negotiation. The psychological principle of “anchoring”.
25:19 People will pay what an item is worth to them, not you.
27:18 Sentimental attachments and sunk cost.
29:50 In a real estate sellers’ market, should you ask for more than you expect, or exactly what you expect?
31:33 Negotiation technique of “log rolling” (presenting a seller with multiple offers).
32:43 Always get the last concession.
34:55 Don’t be a “nibbler”.
36:11 Introverts and negotiation.
38:49 Negotiation is a learned skill; it is not innate.
40:30 Do this in the next 24 hours in order to be a better negotiator.
45:08 Ego and emotion in negotiation.
46:19 Hotel room negotiation technique.