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Consider The Real Estate Market When Planning Your Next Mediation Negotiation.

December 22, 2010

Whether you are now or have ever been a buyer or seller or even just a “looker” in the real estate market,   you are already well qualified to plan your next mediation negotiations. 

From this simple real estate experience are some simple  parallels that  I want you to consider when planning your  next Mediation negotiations.

Similar to mediation, the most important person in the real estate market world is the buyer, or at least the potential buyer, as the one who will ultimately write a check to close the ultimate agreement.

What are the principal guidelines of the real estate experts?

First, for property to obtain any interest, it must be priced properly at the inception of being placed upon the market.

Properties priced fairly often never even make it to the open market.  Such “deals” are usually grabbed by neighbors or certainly knowledgeable persons.

You must consider your opposition to be “knowledgeable persons”.

However, properties priced too high, often receive no interest and languish while the monies of any knowledgeable persons are spent elsewhere.

And, even when offers are made on properties perceived to be over-priced, they often are made by bottom-fishers, seeking only bargains because they perceive the sellers to be unreasonable, if not simply knowledgable.

Second, time is always the enemy. If property languishes too long on the market, it is usually perceived that the buyers are not reasonable or that there is no one else even interested enough to make offers at the original listed price.  And, then even drastically lowering your initial price to some simply signals the same unreasonableness of the original listing that only desperation has changed.

And, third, is the critical importance of  a comparable. If every other comparable property is in a certain price range with similar features in the same neighborhood, why would any buyer be interested in even bidding on an “obviously” over-priced property?

Mediation is very much like the sale of property for the side that is seeking money from the opposition.

If you have any realistic expectation that your negotiation will even get started, it starts with initial pricing of your position in a range that is comparable to similar issues in the same jurisdiction.  It then follows that you must then move rapidly to close the deal before interest is lost to the opposition due to your perceived unreasonableness.

The next time you are seeking money in mediation, place yourself in the imaginary position of a buyer of real estate looking at your initial position and negotiation tactics. What would attract you, if you were the opposition, the “buyer”. of your position?  And, what would turn you off and even turn you away from starting or continuing negotiation?

Guess what?  That is precisely what your opposition will be considering in your next mediation.  So, carefuly consider the real estate market when planning your next mediation negotiation technique.

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