Real Estate Negotiating Magic                                        with             Gary Tharp, CCIM

A  member of the Society of Fellows of the faculty of the CCIM Institute, Mr. Tharp has during the last sixteen years spent several weeks annually  in the delivery of courses leading to the CCIM designation around the country.  He was the author of that Institute's  "Commercial Real Estate Negotiation Workshop", serves as a member of the Institute's governing council, and sits on the board of the CCIM Education Foundation.    His interest in simplifying the investment analysis process has led to the development of several real estate templates for the major computer spreadsheet programs, which he recently donated to the Institute and are resident on ccim.com.  He is a current member of the Florida and Southern Nevada CCIM chapters.

Active for many years in the Orlando Regional REALTOR® Association, Mr. Tharp was the Association's Commercial Broker of the Year in 1989, and in 1992 was the recipient of the "Wilbur Strickland Award" for lifetime achievement in commercial real estate.  He served for 17 years on the board of directors of ORRA.

Mr. Tharp's testimony as an expert witness is often sought by local attorneys. He has authored real estate articles for local and national publications, written several courses on  selling investment real estate,  and has been featured in audio programs on selling and negotiating.  He is a popular speaker, trains agents  for several national and regional real estate brokerages, and has an active consulting practice.

In the 1980's and 90's, Mr. Tharp has organized and led  several general partnerships for the development of land and office buildings worth nearly $40,000,000 in the aggregate.  His development projects include two Great Western Bank buildings, a 100,000 s.f. office building, a 48,000 s.f. flex building, the renovation of three historic buildings in downtown Orlando totalling over 130,000 s.f., and a 60,000 s.f. air cargo facility in Ft. Lauderdale, FL.

Real Estate Negotiating Magic is a one-day workshop intended to help develop your negotiation skills. Upon completion, you should be better able to:

Many real estate brokers and salespeople mistake the meaning and miss out on the benefit of much excellent negotiating training and information available today, because they limit their thinking and options because of their agency responsibilities. The laws of agency do not limit us, however, when we are negotiating on our own behalf!

!Pretending that conflict doesn't exist, or moving around it or away from it, are forms of __________________________.

(LOSE/LOSE)

!Cooperation is admirable, and may seem useful in a negotiation, but it should not be confused with ___________________________, the complete surrender of ones position.

(LOSE/WIN)

!Not bad in itself, ____________________ in a negotiation becomes adversarial, leading to the annihilation of one disputant by another.

(WIN/LOSE)

!Splitting the difference, divvying up, 'meeting in the middle', are all descriptions of ________________________________, which, because both sides are sacrificing some of their interests, can lead to long-term dissatisfaction.

(LOSE/LOSE)

!_____________________________ describes the negotiating style which elevates interest over issue and position, and gets all participants moving in the same direction.

(WIN/WIN)
 
 

The futility of positional negotiation is evident in the wealth of educational material available covering what to do when positions harden, impasse is reached, parties break off communications, negotiators walk out, a strike is called or a lockout implemented, and so forth.
 
 

Interests, issues, and positions are the _________, the _________, and the ____________ of the negotiation.

Interests are the underlying basis of any conflict, distinguished by the fact they are ______________________ based and they are never open to ________________________.

Issues are the tangible items that must be dealt with to resolve a _______________. They are based on the real ______________ of the disputants. Unlike interests, they are __________________.

Positions are specific, quantified proposals of ____________ to resolve the issues, which in turn satisfy interests. Dealing with positions is the most __________________ part of the negotiating process, as they are highly __________________.

Examples of ______________ are price, inspection period, Seller financing.

Examples of ______________ are $50,000, 30 days, 8%

Examples of ______________ are love, esteem, security, self-actualization.
 
 
 

The goal of a real WIN/WIN negotiator is almost always durable settlement -- the relationship that outlasts a single transaction. The success of the negotiation, by this standard, is measured by whether or not the participants would do business together again.
 
 

The three components of a durable settlement are ______________ satisfaction, which depends on the format of the negotiation, __________________ satisfaction, which is the measure of how each side's interests are satisfied, and __________________ satisfaction, which measures how each ____________ at the end of the negotiation.

Procedural agreements revolve around defining the __________, setting up the ___________ under which we will negotiate, and provide a sense of ___________ for the negotiation itself.

Substantive agreement is ______________ agreement. Positions and issues may be modified and sacrificed only if each of the participant's _______________ are preserved.
 
 
 
 

When the negotiation is over, participants should be relieved, satisfied, pleased with the experience...NOT worn down, dispirited, humiliated.

Psychological satisfaction is achieved if we 'feel better' at the end of the settlement than we did before the negotiation began.
 
 

______________ ___________________ is a sign that the negotiation did not achieve psychological satisfaction.

When there is psychological satisfaction, ________________ of the settlement is unlikely, ____________________ is not a danger, and renewal of the _________________ will not often take place.

A sign that psychological satisfaction was achieved is that both sides would use the same ____________________ to resolve future disputes.

One way of promoting psychological satisfaction is to help participants to weigh the _____________ _______________ against a worst-case scenario (no settlement).
 
 
 

Winning through intimidation isn't winning, its conquering! No matter how big the market, sooner or later the Win/Lose negotiators earn the reputation they deserve and have a hard time getting someone to play their game. Collaborative negotiators build long-lasting relationships, find themselves busier doing business with a smaller universe of (Win/Win) players, and earn reputations as firm but fair.
 
 

The most difficult thing to get in the habit of doing as a negotiator seems to be discovering ______________ ________________.

A Win/Win negotiator will always be more interested in the other side's ___________________ than __________ ___________ .

The magical question of the Win/Win negotiator is ___________ ?

Since the negotiator with the most options tends to have more power, the successful negotiator will ask the other side about _________ __________ their needs might be met.

Negotiating Hallmarks:

! Each side will feel that ________ _______!

! `We were ________ on the problem, _______ on the people'

! Each side cared about the other side's ______________.
 
 

The most regular practice a real estate practitioner may have in negotiating is negotiating employment and fees. The conflicts that arise when a client wishes to modify the fee arrangement in conjunction with a particular offer are the most critical because our agency obligations seem to be at odds with our responsibility to satisfy our own needs.
 
 

The value of ____________ always seems to go ____________ ____________ after those services have been performed.

Relax; remember that `We're just a commission away' is just another _____________________.

Avoid confrontation: arguing always ________________ peoples' desire to prove themselves.

Be aware of your _________ ________________ to a negotiated settlement.

When the other side tries to give you ________ ______________, test it for validity right away.

"Let's just _____ that _______ for a moment and look at some of the other issues involved."

"In all ______________, is this the best way to handle the situation?"
 
 

"The art of negotiation is the art of not having to make concessions"