The Approach is Everything
In today's market it is tougher than ever to find a good deal, and when you do, you need an edge over the competition to get it closed. The approach you take with the other person when negotiating a deal can mean everything.
You must change the way someone
feels before you can
change his or her state of mind. Simply presenting the facts correctly won't get you the decision you want.
How you approach a seller to purchase a property can mean the difference in getting an offer accepted or not. Equally critical is your approach when you're speaking to a real estate lender. Your approach and the way you present your loan request can influence getting to the top of his/her list and whether you ultimately strike a deal.
If you're married or have kids, you are in essence making "deals" every day. You know if you approach your spouse or kids with just "the facts," regardless of how certain you are, and don't approach them with the right attitude, the right tone of voice and the right words, you may find yourself in conflict or apologizing regardless of how right you were. These outcomes are not necessarily because you were wrong in your ideas, but related to how you came across in your approach.
The approach is everything.
Three ways you can have the edge over the competition in your approach:
1. Approach With Humility
Humility means not posturing to get what you want. It's the opposite approach from using manipulative sales tactics to get your way. It means opening up and being reasonably transparent. Exercising humility removes the need for ego assertion by allowing other parties to let down their guards, becoming less defensive and more vulnerable to disclose their true feelings. Humility opens up the honest opportunity to assess the strengths and weaknesses of the deal, and demonstrates your intention to work with other parties rather than against them by creating mutually beneficial relationships. Through trust you can learn what the other party wants out of the deal, and you can better structure a win/win proposal.
When at all possible, it's best to meet in person to establish a relationship of trust and understanding that will allow you to portray humility and open up the line of communication. This will allow you to learn more about the other person and what he or she needs out of the transaction. Also, you can share your story of why you need help from the other party.
2. Approach With Empathy
Empathy means intentionally seeking to step into another's shoes and vicariously experiencing the feelings, thoughts, and attitudes of the other party. Empathy allows you to see the other person's perspective and conduct the negotiation in a way that is beneficial to both of you.
For example, if you know (as a buyer) a property is being sold because of a death in the partnership, before discussing any transaction details you should go out of your way to express to the seller how sorry you are for the loss, and how hard it must be to lose a partner. Sincere empathy will solidify trust in the relationship.
If you are applying for a loan and the lender is buried with loan applications, you need first to let him or her know first that you understand how difficult it must be to process so many loans. Then convey how you will make it easier than all the other applicants by promptly providing everything he or she needs in its entirety. This shows empathy.
Once you have established a relationship and demonstrate first through actions that you care more about the other person than yourself, you can then request and push for the loan amount you need, increasing your likelihood of success.
3. Approach With Capacity
Approaching a negotiation with capacity or the ability to perform is key in gaining the respect and confidence of the other party. It's important for the other party to know you are capable of making the deal happen. For example, as a buyer, you need to give the seller assurances your financing is lined up and you have been approved for a loan. Taking key preparatory actions helps to show you have the willingness and capacity to close the deal.
However, strategically there is also a need to demonstrate some scarcity in the process to justify your request and position in the negotiations. For example, you provide evidence you have approval for financing, but only enough to achieve your offered price, indicating that without the desired financing you can't afford the higher price, thus precluding you from closing the deal.
The truth is that in every relationship, there are always situations where you or the other person want something. In business this is particularly true. At The Loan Company our core operating principle is "The Golden Rule" which is to treat others the way you want to be treated. The "Approach is Everything" is founded on this principle.
So first of all, focus on listening and developing a relationship of trust, which will allow you to tap into the other party's feelings before trying to change his or her mindset. It's important that you convey the right motive in your approach and that you are not out for just yourself. How you communicate—your tone of voice, your posture and the words you use— is equally important. The goal is to build a bridge (not a wall) to achieve a win/win deal.
If you want a creative lender who wants to make deals happen and not one who is quick to reject a reasonable loan request call The Loan Company today 619-293- 7770 ext. 20.