The Goodwill Factor in Negotiation

The Goodwill Factor in Negotiation

Real Estate negotiation (depending on the people involved) should be more about the Goodwill factor that will bring about something you will most likely need at a very critical moment of the transaction.  Negotiation doesn’t end after the purchase contract signed, unless you have waived the contingencies.

goodwill (noun):  the favor or advantage that a business has acquired especially through its brand and its good reputation.

Mirriam-Webster Collegiate Dictionary Eleventh Addition

I especially like this definition of goodwill because it is the essence of what I am trying to convey in negotiation.   When you negotiate, you are factoring in advantages seen and unseen.  There are concessions you can make that would help in your favor if something else totally does not go your way.  It’s about winning the war not necessarily winning that specific battle.  Judge what your need or want is against a factor that is coming down the pike.  Like knowing that you desire an earlier closing over getting the radon mitigated.

Being a pain to the other side just to prove a point usually does not make for a smooth transaction.  It only causes hurt feelings and makes the transaction more difficult in the end.

Also, negotiation is learning to piece out information at the right moment in time.  It is not always necessary to reveal a piece of information unless they other side specifically asks for it.

Example:  An agent asks the listing agent if getting an offer in by a certain time of the day is fine.  They assume there is a multiple offer situation and overbids on the home.  The listing agent had no obligation to say that there aren’t any offers.  The selling agent (buyer’s agent) should have asked if there are offers on the table.

Knowing what to ask, when to ask it and/or what to say and when to say it is more important in the goodwill factor in the negotiation process than who put the beat down over the other side.