| Imagine for a moment that you own a sailboat, and | | | | Reluctant Buyer Gambit.He reads the offer quietly, |
| you're desperate to sell it. It was fun when you first | | | | and when he's finished he slides it thoughtfully back |
| got it, but now you hardly ever use it, and the | | | | across the table, scratches above one ear, saying |
| maintenance and slip fees are eating you alive. It's | | | | something like, "I don't know. Of all my properties, I |
| early Sunday morning, and you've given up a chance | | | | have very special feelings for this one. I was thinking |
| to play golf with your friends because you need to | | | | of keeping it and giving it to my daughter for her |
| be down at the marina cleaning your boat. You're | | | | college graduation present and I really don't think that |
| scrubbing away and cursing your stupidity for ever | | | | I would part with it for anything less than the full |
| having bought the boat. Just as you're thinking, "I'm | | | | asking price. You understand; this particular property |
| going to give this turkey away to the next person | | | | is worth a great deal to me. But look, it was good of |
| who comes along," you look up and see an | | | | you to bring in an offer for me and in all fairness, so |
| expensively dressed man with a young girl on his arm | | | | that you won't have wasted your time, what is the |
| coming down the dock. He's wearing Gucci loafers, | | | | very best price that you feel you could give me?" |
| white slacks, and a blue Burberry's blazer topped off | | | | Many times, I saw him make thousands of dollars in |
| with a silk cravat. His young girlfriend is wearing high | | | | just a few seconds using the Reluctant Seller |
| heels, a silk sheath dress, big sunglasses, and huge | | | | philosophy.Power Negotiators always try to edge up |
| diamond earrings.They stop at your boat, and the | | | | the other side's negotiating range before the real |
| man says, "That's a fine looking boat. By any chance | | | | negotiating ever begins.I remember an oceanfront |
| is it for sale?"His girl friend snuggles up to him and | | | | condominium that I bought as an investment. The |
| says, "Oh, let's buy it, poopsy. We'll have so much | | | | owner was asking $59,000 for it. It was a hot real |
| fun."You feel your heart start to burst with joy and | | | | estate market at the time and I wasn't sure how |
| your mind is singing, "Thank you, Lord! Thank you, | | | | eager the owner was to sell or if they had any other |
| Lord!"Expressing that sentiment is not going to get | | | | offers on it. So, I wrote up three offers, one at |
| you the best price for your boat, is it? How are you | | | | $49,000, another at $54,000 and a third at $59,000. I |
| going to get the best price? By playing Reluctant | | | | made an appointment to meet with the seller, who |
| Seller. You keep on scrubbing and say, "You're | | | | had moved out of the condominium in Long Beach |
| welcome to come aboard, although I hadn't thought | | | | and was now living in Pasadena. After talking to her |
| of selling the boat." You give them a tour of the | | | | for a while, I determined that she hadn't had any |
| boat and at every step of the way you tell them | | | | other offers and that she was eager to sell. So I |
| how much you love the boat and how much fun you | | | | reached into my briefcase, where I had the three |
| have sailing her. Finally you tell them, "I can see how | | | | offers carefully filed and pulled out the lowest of |
| perfect this boat would be for you and how much | | | | them. She accepted it, and when I sold the |
| fun you'd have with it, but I really don't think I could | | | | condominium a few years later, it fetched $129,000. |
| ever bear to part with it. However, just to be fair to | | | | (Be aware that you can do this only with a "For Sale |
| you, what is the very best price you would give | | | | by Owner." If a real estate agent has listed the |
| me?"Power Negotiators know that this Reluctant | | | | property, that agent is working for the seller and is |
| Seller technique squeezes the negotiating range | | | | obligated to tell the seller if he's aware that the other |
| before the negotiating even starts. If you've done a | | | | side would pay more. Another reason why you |
| good job of building the other person's desire to own | | | | should always list property with an agent when |
| the boat, he will have formed a negotiating range in | | | | you're selling.) |
| his mind. He may be thinking, "I'd be willing to go to | | | | So, Power Negotiators always play Reluctant Seller |
| $30,000, $25,000 would be a fair deal and $20,000 | | | | when they're selling. Even before the negotiation |
| would be a bargain." So, his negotiating range is from | | | | starts, it squeezes the other side's negotiating |
| $20,000 to $30,000. Just by playing Reluctant Seller, | | | | range.Remember that when people do this kind of |
| you will have moved him up through that range. If | | | | thing to you, that it's just a game that they are |
| you had appeared eager to sell, he may have | | | | playing on you. Power Negotiators don't get upset |
| offered you only $20,000. By playing Reluctant Seller | | | | about it. They just learn to play the negotiating game |
| you may move him to the mid-point, or even the | | | | better than the other side.Key points to |
| high point of his negotiating range, before the | | | | remember:Always play Reluctant Seller.Playing this |
| negotiations even start.One of my Power | | | | Gambit is a great way to squeeze the other side's |
| Negotiators is an extremely rich and powerful | | | | negotiating range before the negotiation even |
| investor, a man who owns real estate all over town. | | | | starts.The other person will typically give away half |
| He probably owns real estate worth $50 million, owes | | | | his or her negotiating range just because you use |
| $35 million in loans, and therefore has a net worth of | | | | this.Roger Dawson |
| about $15 million. Very successful-what you could | | | | Founder of the Power Negotiating Institute |
| justifiably call a heavy hitter. He likes wheeling and | | | | 800-932-9766 |
| dealing.Like many investors, his strategy is simple: Buy | | | | Dawson is the author of two of Nightingale-Conant's |
| a property at the right price and on the right terms, | | | | best selling audiocassette programs, Secrets of |
| hold onto it and let it appreciate, then sell at a higher | | | | Power Negotiating and Secrets of Power Negotiating |
| price. Many smaller investors bring him purchase | | | | for Salespeople. This article is excerpted in part from |
| offers for one of his holdings, eager to acquire one | | | | Roger Dawson's new book - "Secrets of Power |
| of his better-known properties. That's when this | | | | Negotiating", published by Career Press and on sale in |
| well-seasoned investor knows how to use the | | | | bookstores everywhere for $24.99. |