Practice Briefing: A comprehensive negotiation framework for real estate professionals (Part II)

Abstract

Purpose

The purpose of this briefing, which is Part II of a two-part series, is to address the challenges faced by real estate professionals in negotiations, advocating a shift from traditional win-lose strategies to a value win-win approach and providing a path for this transition. It highlights the importance of continuous negotiation learning and adaptation in an evolving industry, emphasising the need for a collaborative, ethical and interest-based negotiation strategy to achieve long-term success.

Design/methodology/approach

The briefing adopts a theoretical and practical approach, combining insights from negotiation theory with real-world applications in the real estate context. It introduces the seven elements framework as a foundation for value win-win negotiations, providing a structured method for real estate professionals to enhance their negotiation skills and outcomes.

Findings

The briefing identifies a historical preference for win-lose negotiation strategies in the real estate industry, driven by power dynamics and short-term gains. It highlights the limitations of this approach in a changing industry landscape and presents value win-win negotiation as a more effective alternative that focuses on mutual gains, ethical practices and long-term relationships. It differentiates value win-win from win-lose or win-win naïve strategies and provides value win-win advice to negotiate when faced with these other two strategies.

Practical implications

Real estate professionals are encouraged to embrace the value win-win approach by shifting their mind-set, building strong relationships and communication channels, focusing on interests rather than positions, generating mutual-gain options, persuading based on legitimacy and finally making the best possible decision to either commit or walk away to their alternatives. The briefing provides practical strategies and best practices for implementing this approach, including preparation, option generation and commitment to mutually beneficial outcomes.

Originality/value

The briefing contributes to the negotiation literature by offering a comprehensive and practical guide for real estate professionals to navigate complex negotiations. It presents a novel application of the seven elements framework in the real estate context, emphasising the importance of a value-driven, collaborative approach in achieving superior negotiation outcomes on average than other common negotiation strategies.

Citation

Wiegelmann, T. and Falcão, H. (2024), "Practice Briefing: A comprehensive negotiation framework for real estate professionals (Part II)", Journal of Property Investment & Finance, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JPIF-04-2024-0057