Establishing Trust and Competence in Negotiations

Key Initial Steps

• First Impressions:
  • Trust and competence need to be established in the first 10-30 seconds.
  • Followed by reinforcing these in the next 60 seconds.

Building Trust

• Human Nature & Decision Making:
  • Understanding how value is perceived.
  • Recognize when someone is pumping you for due diligence.
  • Realize the difference between genuine interest and information gathering phases.
  • Decision to buy typically takes 8 steps: engagement often starts at step 3 and buying decision made at step 7.

Example: Hiring an HR Consultant

• Relied on trusted advisor (the accountant) for recommendations.
• Gathered information and assessed options before making a decision.
• Sometimes exploratory conversations are just for information, not a genuine interest to buy.

Market Realities

• Comparative Value:
  • Other industries charge higher fees (finders' fees can be 10%).
  • Real estate commissions are generally lower (2.5% to 6%).
• Emotional Transactions:
  • Real estate transactions are highly emotional and involve dreams, future, etc.
• Fair Compensation:
  • Agents guide people through significant decisions and deserve fair compensation.

Communication Strategies

• Effective Engagement:
  • Use empathy and human touch in emotional transactions.
  • Accelerate trust through genuine interaction.

Tells in Negotiations

• Red Flags vs. Yellow Flags:
  • Red flags are obvious dangers, while yellow flags are subtle cues often ignored.
  • Ignoring yellow flags can harm negotiations.
• Questions to Ask:
  • Why questions can reveal underlying motives and intentions.
  • Be cautious of overly focused queries which might indicate comparison against a favored option.

Technology vs. Human Touch

• Tech Disruption:
  • Despite technological advancements aiming to replace agents, the need for human guidance persists.
• Role of Empathy:
  • Empathy remains crucial for navigating clients through emotional transactions.

Conclusion

• Continuous Improvement:
  • Constant refinement of strategies is important.
  • Learning to identify tells and leveraging empathy can lead to better negotiation outcomes.
• Balanced Success:
  • Success isn’t just about closing deals but also about maintaining peace of mind and job satisfaction.

Invitation:

• Further Learning:
  • The importance of applying these negotiation skills in real life.
  • Encouragement to reach out to the Black Swan Group for deeper insights.

Recommendations

• Always look for tells and do not ignore yellow flags.
• Establish trust quickly using empathy and genuine interactions.
• Recognize and navigate the phases of decision-making in negotiations.
• Balance professional success with personal well-being and job satisfaction.