“When both parties plug their ears and shout their demands, it’s no wonder the deal collapsed faster than a flan in a hot oven.”

Negotiation Fail: A Lesson in Listening

Carlos was fresh off the plane, and his dreams of owning a business and getting that green card? Crushed. As his friend Juan drove him home, Carlos blinked away tears, replaying the disastrous negotiations in his mind. What went wrong? Well, when both parties plug their ears and shout their demands, it’s no wonder the deal collapsed faster than a flan in a hot oven.

Why Do Negotiations Fail?

The biggest blunder in any negotiation is the failure to listen. When buyers and sellers only care about their own goals, they miss out on a win-win deal and instead get a big, fat zero. Carlos thought he had it all figured out, focusing only on his plan to get his green card. But surprise, surprise, the seller had plans too—and they didn’t exactly match up.

Putting Yourself in the Other Guy’s Shoes

Now, Carlos isn’t a bad negotiator; he just didn’t consider the seller’s point of view. Sellers aren’t just after a pile of cash—they’re often looking for security, especially when retirement is on the horizon. A little empathy goes a long way. By understanding what the seller really wants, Carlos could’ve crafted an offer that was music to the seller’s ears while still hitting his own high notes.

An Example: The Power of Perspective

Let’s say you’re in Carlos’s shoes. The seller wants $800,000, but you’re not ready to shell out that kind of dough upfront. Instead of haggling over the price like it’s a flea market, show that you get where the seller’s coming from. Say something like, “We know every dollar counts, especially for your retirement.” Then, make an offer: “We’ll give you $600,000 now and $200,000 over three years, with interest. So, you’ll actually get more than the asking price!” Throw in a job as a manager, and suddenly, the deal looks like a golden parachute for the seller, not a hard landing.

The Perks of Installment Payments

Aside from making the seller happy, paying in installments can also save you a bundle on taxes. Plus, you keep the deal’s wheels greased with a steady cash flow. It’s a win-win, and who doesn’t love that?

What You Need for Successful Negotiations:

• Listen First: Make sure the other party feels heard—it's easier to close a deal that way.

• Build Trust: Establishing trust early on smooths the negotiation process.

• Offer a Win-Win: Make sure your offer benefits both sides, not just yours.

• Keep Compromises Realistic: Tailor your deal so it’s workable for everyone involved.

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