Why Great Negotiations Create Value For Both Sides

Whether you’re a sales broker or someone starting out in real estate, negotiating is an essential skill for success. Over the course of my 25+ years in real estate, I’ve seen negotiations take place across many platforms, from conversations about the details of a contract to complex transactions that unfold over months or even years.

What I’ve learned is that the best negotiations tend to produce results that are favorable for everyone involved. When both parties walk away feeling that their goals were understood and addressed, the transaction is much more likely to be successful.

If you want to develop stronger negotiating skills, consider focusing on how to create value for both sides of the table.

Listen First to Understand What Matters

One of the most effective ways to create value in a negotiation is to begin by listening. Chris Voss, the former FBI hostage negotiator and author of Never Split the Difference, often emphasizes the importance of asking questions and learning what the other side truly cares about.

When I had the opportunity to hear Voss speak, he stressed that many negotiations break down because people focus too quickly on presenting their own arguments. In reality, the other party may simply want to feel heard and understood before discussing solutions.

By asking thoughtful questions and paying attention to the responses, you can uncover priorities that might not be obvious at first. This information often becomes the key to structuring a deal that works for both sides.

Look Beyond the Price

Negotiations are frequently framed as a discussion about price, but there are often many other factors too. These could be related to timing, flexibility, or certainty of close. There’s a well-known phrase in real estate coined by Harry Helmsley, a well-known New York investor, that states, “Your price, my terms.” The idea behind it is that the structure of a deal can be just as valuable as the price itself.

Search for Shared Interests

In real estate, negotiations frequently involve different types of stakeholders. We often have to be creative to find a path forward. When both parties recognize that they share certain goals, such as completing a transaction smoothly or within a set timeframe, the conversation can shift toward finding a win for everyone.

Maintain Professionalism

In his book, Voss addresses what he calls a “late-night FM DJ voice,” which refers to a calm and steady tone that helps keep discussions constructive. Maintaining professionalism, even during difficult conversations, is a key step in successful negotiations. You may find it helpful to take a break and revisit the discussion at a later point when everyone has gained some perspective too.

Prepare Well

Before negotiations begin, it’s important to understand your goals and research the situation. This can help you anchor the conversation around realistic expectations and navigate new developments. When you know where you want to land, it becomes easier to guide the discussion in that direction while remaining open to creative solutions.

Ultimately, the most successful negotiations are those that create value for everyone involved. You’ll want both sides to feel that their interests have been addressed. When done well, a successful negotiation can strengthen relationships and lead to future opportunities.