A great way to elevate your bargaining power in a real estate negotiation is via a strong BATNA, or a “Best Alternative to a Negotiated Agreement.” In other words, your best outside option if you walked away from the deal at hand. BATNA is a concept that was developed by Roger Fisher, William Ury, and Bruce Patton of the Harvard Negotiation Project in their landmark publication Getting to YES: Negotiating Agreement Without Giving In. Their approach has played a vital role in my success in real estate, and I hope it helps you on the path to negotiating winning agreements.
How does establishing a strong BATNA elevate bargaining power?
1. Competing Options. Encourages you to engage with the market, generate alternative offers, and improve your position.
2. Reservation Point. Serves as a floor for the deal at hand and determines the minimum you’d accept. You’re less likely to be rash and accept an unfavorable deal.
3. Puts Pressure on Other Side. Provides you with a credible threat to step away from the deal, shifting pressure to the other party.
Ultimately, you choose your BATNA and I’m here to help. Whether you’re a first-time buyer, motivated seller, seasoned investor, ambitious agent, or anywhere in between, I look forward to working together!