Welcome to the International Right of Way Association’s Course 200: Principles of Real Estate Negotiation 209.PPT.R4.2014.09.01.0.0 © 2014 International Right of Way Association - All Rights Reserved 1 Introductions Who we are… What we do… Where we do it… How long we’ve been doing it… Our goals for the course... 2 Objectives At the conclusion of the course, you will be able to... Identify, understand, and apply the principles associated with effective attitudinal, integrative, bargaining, and intra-agency negotiation. Articulate the conditions necessary for negotiations to proceed and the primary roles of the agent. Discuss the characteristics of successful negotiators. Exhibit the communication skills of successful negotiators. Explain and implement a plan for effective negotiations. Identify and analyze variables that may influence the negotiation process. Identify alternative strategies to pursue when negotiations fail. © 2014 International Right of Way Association - All Rights Reserved 3 Housekeeping © 2014 International Right of Way Association - All Rights Reserved 4 Schedule The schedule will proceed as follows: Day One 8:00 - 8:30 Introductions, etc. 8:30 - 9:00 Overview 9:00 - 10:00 Negotiation Principles 10:15 - 11:45 Characteristics of the Successful Negotiator 12:45 - 2:15 Communication Skills 2:30 - 4:45 Attitudinal and Integrative Negotiations 8:00 - 8:30 8:30 - 10:00 10:15 - 11:45 12:45 - 1:15 1:15 - 2:15 2:30 - 3:30 4:00 - 5:00 Day Two Recap Day One Bargaining and Intra-agency Negotiations A Plan Variables that May Influence Negotiations When Negotiations Fail Summary and Review Exam 5 Negotiation … the process by which two or more people resolve differences to reach a mutually acceptable agreement. © 2014 International Right of Way Association - All Rights Reserved 6 Types of Negotiation Integrative Bargaining Attitudinal Intra-agency © 2014 International Right of Way Association - All Rights Reserved 7 Integrative “Win-Win” Mutually beneficial outcomes Inquiry Collaborative © 2014 International Right of Way Association - All Rights Reserved 8 The Pie © 2014 International Right of Way Association - All Rights Reserved 9 Bargaining “Win-Lose” “Zero-Sum” Advocates positions Compromise © 2014 International Right of Way Association - All Rights Reserved 10 Attitudinal Shared frame of reference Trust Common ground 11 Intra-agency Intra-organization © 2014 International Right of Way Association - All Rights Reserved 12 Conditions Necessary... Issues must be negotiable Parties must be willing to negotiate Parties must trust each other 13 Trust Placing confidence in another, based on that person’s character, ability, strength, or truthfulness © 2014 International Right of Way Association - All Rights Reserved 14 Characteristics(1) Credibility Courage Empathy Integrity/Ethics Patience 15 Power Legitimate Reward Coercive Reverent Charismatic Expertise Situation Information 16 Characteristics(2) Credibility Courage Empathy Integrity/Ethics Patience 17 Questions • “Would you like a drink?” • “My spouse doesn’t need to meet with us. Let’s just get started. OK?” • “What happens if I don’t sign?” 18 Message Send Encoded Transmitted Interference Communication Model Received Decoded 19 Communication Skills (1) Listening Relationship building Asking good questions Maintaining relationships Feedback Managing impressions Motivation 20 Questions Primary Channel probes Irrelevant answer probes Closed-ended Clarity probes Reactive probes Open-ended Completion probes Non-response probes 21 Maintaining Relationships Shared control Openness Interdependence Equality “Liking” Self-worth Similarities Trust No jargon 22 Communication Skills (2) Listening Relationship building Asking good questions Maintaining relationships Feedback 23 Maslow 24 Attitudinal Shared frame of reference Trust Common ground 25 Attitudinal Tips Inquiry rather than advocacy Communicate Stage setting 26 Listening Strategies Focus Track Reflect Clarity Diplomacy Redirect 27 Integrative “Win-Win” Mutually beneficial outcomes Inquiry Collaborative 28 Integrative I. Information Getting II. Information Giving III. Problem Census IV. Problem Solving V. Closing 29 Day One Recap Today, we… Articulated some of the conditions necessary for negotiations to proceed and the primary roles of the agent. Discussed the characteristics of successful negotiators. Looked at communication skills of successful negotiators. Examined attitudinal and integrative negotiation, including the Funnel Technique. 30 Day Two Today, we will... Examine bargaining and intra-agency negotiation. Look at a negotiation plan. Analyze variables that influence the negotiation process. Identify alternate strategies when negotiations fail. 31 Bargaining “Win-Lose” “Zero-Sum” Advocates positions Compromise © 2014 International Right of Way Association - All Rights Reserved 32 Bargaining Tips Separate people from problems Question tactics not character Avoid diversions Focus on interests Mutual gain Brainstorm Objective criteria (Facts) Set standards Broaden range © 2014 International Right of Way Association - All Rights Reserved 33 Intra-agency © 2014 International Right of Way Association - All Rights Reserved 34 A Plan (1) Analyze the project’s impacts Develop an understanding of the owner Optimize strengths and opportunities and minimize weaknesses and threats Incorporate listening and conflict management skills Remember the “rules” BATNA © 2014 International Right of Way Association - All Rights Reserved 35 A Plan (2) Analyze the project’s impacts Develop an understanding of the owner Optimize strengths and opportunities and minimize weaknesses and threats Incorporate listening and conflict management skills Remember the “rules” BATNA © 2014 International Right of Way Association - All Rights Reserved 36 A Plan (3) Analyze the project’s impacts Develop an understanding of the owner Optimize strengths and opportunities and minimize weaknesses and threats Incorporate listening and conflict management skills Remember the “rules” BATNA © 2014 International Right of Way Association - All Rights Reserved 37 Listening People oriented listeners Action oriented listeners Content oriented listeners Time oriented listeners © 2014 International Right of Way Association - All Rights Reserved 38 Conflict Management Styles Avoidance Accommodation Competition Compromise Integration © 2014 International Right of Way Association - All Rights Reserved 39 A Plan (4) Analyze the project’s impacts Develop an understanding of the owner Optimize strengths and opportunities and minimize weaknesses and threats Incorporate listening and conflict management skills Remember the “rules” BATNA © 2014 International Right of Way Association - All Rights Reserved 40 A Plan (5) Analyze the project’s impacts Develop an understanding of the owner Optimize strengths and opportunities and minimize weaknesses and threats Incorporate listening and conflict management skills Remember the “rules” BATNA © 2014 International Right of Way Association - All Rights Reserved 41 A Plan (6) Analyze the project’s impacts Develop an understanding of the owner Optimize strengths and opportunities and minimize weaknesses and threats Incorporate listening and conflict management skills Remember the “rules” BATNA © 2014 International Right of Way Association - All Rights Reserved 42 A Plan (7) Analyze the project’s impacts Develop an understanding of the owner Optimize strengths and opportunities and minimize weaknesses and threats Incorporate listening and conflict management skills Remember the “rules” BATNA © 2014 International Right of Way Association - All Rights Reserved 43 Problem Solving or Bargaining? Acquisition type (fee, fee without access, permanent easement, temporary easement) Property owner’s “style” Project funding source The magnitude of the offer The project schedule Other variables © 2014 International Right of Way Association - All Rights Reserved 44 BATNAs Condemnation preparation Mediation Advisory arbitration Fact finding Med-Arb Binding arbitration © 2014 International Right of Way Association - All Rights Reserved 45 Objectives Now you should be able to... Identify, understand, and apply the principles associated with effective attitudinal, integrative, bargaining, and intra-agency negotiation. Articulate the conditions necessary for negotiations to proceed and the primary roles of the agent. Discuss the characteristics of successful negotiators. Exhibit the communication skills of successful negotiators. Explain and implement a plan for effective negotiations. Identify and analyze variables that may influence the negotiation process. Identify alternative strategies to pursue when negotiations fail. 46 Thank you! 209.PPT.R4.2014.09.01.0.0 47