IMPORTANCE OF GOOD COMMUNICATION SKILLS IN NEGOTIATION
By Lillian Wade[50]
Negotiators need to express themselves clearly and concisely in order to speak with a devotion to the purpose of the negotiation. Good communication requires both verbal and non-verbal skills to find solutions that respond to the underlying issue at hand. It is the cornerstone of any productive negotiation. Cultivating the ability to understand others and to listen well can also help to build a solid foundation for congenial and productive working relationships.
Non-Verbal Communication
Non-verbal communication includes gestures, such as facial expressions, body movements and eye contact. It is significant in normal interpersonal exchange, and it differs between places and cultures. Clues are interpreted by others to understand the speaker and to respond. Be aware of your facial expressions and body posture in terms of their meaning in different cultures, and know what kind of physical contact is appropriate with special attention to the physical distance between you and the person with whom you are speaking.
Oral Communication Skills
Before you begin any negotiation process, organize your thoughts. Take notes and plan what you are going to say, outlining the main points you want to cover. During the negotiations continue to take notes and plan responses. Take your time to respond; silence can be a powerful negotiating tool. Determine the logical conclusion of an idea and evaluate the possible reactions. Be concise and get to the point without being blunt. Emphasize your main point often, and focus on the benefit to the other party.
Understanding Negotiating Skills
Successful negotiation requires accepting the other person despite differences in values, beliefs, education, ethnicity, or perspective. It allows you to consider an issue from all sides and to promote understanding and interest in the other person without agreeing with his point of view. Negotiation is a matter of choosing a solution to which no one has an objection, so keep your personal goals from interfering with the overall shared goals.
Listening Skills
Listen attentively to enhance creative solutions for problem-solving. The psychological benefit of being a good listener is that the person to whom you are listening tends to be more cooperative and understanding in reaching a solution to the problem. The ability to listen well will help you evaluate and analyze the situation. Because everyone wants to be heard and to be understood, you can often effectively diffuse a situation and have a desirable outcome.
Assignments
1. Why should negotiators need to express themselves clearly and concisely?
2. What does non-verbal communication include?
3. What does oral communication skills include?
4. What is the difference between oral and non-verbal communication?
5. Why is non-verbal communication so widely used in negotiation process?
6. Comment the following statement: “Successful negotiation requires accepting the other person despite differences in values, beliefs, education, ethnicity, or perspective.”
7. Why are listening skills so important?
8. What is the psychological benefit of being a good listener?
9. Which negotiation skills are the most important for you? You may use the figure given below.
Fig. 7.2 Negotiation Skills
10. Summarize the text.
Text 3
A Buyers’ and Sellers’ Guide to Multiple Offer Negotiations
By the National Assosiation of Realtors [51]
Information for Buyers
In some situations sellers will have several competing purchase offers to consider. Sellers have several ways to deal with multiple offers. Sellers can accept the “best” offer; they can inform all potential purchasers that other offers are “on the table”; they can “counter” one offer while putting the other offers to the side awaiting a decision on the counter-offer; or they can “counter” one offer and reject the others. While the listing broker can offer suggestions and advice, decisions about how offers will be presented – and dealt with – are made by the seller - not by the listing broker.
There are advantages and disadvantages to the various negotiating strategies you can employ in multiple offer negotiations. A low initial offer may result in buying the property you desire for less than the listed price – or it may result in another buyer’s higher offer being accepted. On the other hand, a full price offer may result in paying more than the seller might have required. In some cases there can be several full price offers competing for the seller’s attention – and acceptance.
Your buyer-representative will explain the pros and cons of these (and possibly other) negotiating strategies. The decisions, however, are yours to make. Purchase offers generally aren’t confidential. In some cases sellers may make other buyers aware that your offer is in hand, or even disclose details about your offer to another buyer in hope of convincing that buyer to make a “better” offer. In some cases sellers will instruct their listing broker to disclose an offer to other buyers on their behalf.
Listing brokers are required to follow lawful, ethical instructions from their clients in the same way that buyerrepresentatives must follow lawful, ethical instructions from their buyer-clients. While some REALTORS® may be reluctant to disclose terms of offers, even at the direction of their seller-clients, the Code of Ethics does not prohibit such disclosure. In some cases state law or real estate regulations may limit the ability of brokers to disclose the existence or terms of offers to third parties.
You may want to discuss with your buyer-representative the possibility of making your offer confidential, or of establishing a confidentiality agreement between yourself and the seller prior to commencing negotiations. Realize that as a represented buyer, your broker likely has other buyer-clients, some of whom may be interested in the same properties as you are. Ask your broker how offers and counter-offers will be presented and negotiated if more than one of her buyer-clients are trying to buy the same property. Appreciate that your buyer-representative’s advice is based on past experience and is no guarantee as to how any particular seller will act (or react) in a specific situation.
Information for Sellers
It’s possible you may be faced with multiple competing offers to purchase your property. Your listing broker can explain various negotiating strategies for you to consider. For example, you can accept the “best” offer; you can inform all potential purchasers that other offers are “on the table” and invite them to make their “best” offer; you can “counter” one offer while putting the other offers to the side awaiting a decision on your counter-offer; or you can “counter” one offer and reject the others.
If you have questions about the possibility of multiple offers and the way they can be dealt with, ask your listing broker to explain your options and alternatives. Realize that each of these approaches has advantages and disadvantages. Patience may result in an even better offer being received; inviting buyers to make their “best” offers may produce an offer (or offers) better than those “on the table” – or may discourage buyers who feel they’ve already made a fair offer resulting in them breaking off negotiations to pursue other properties. Your listing broker will explain the pros and cons of these strategies (and possibly other) negotiating strategies. The decisions, however, are yours to make. Appreciate that your listing broker’s advice is based on past experience and is no guarantee about how any particular buyer will act (or react) in a specific situation.