The concept of ‘practising’ negotiation

This week I met a lovely new industry friend who was introduced to me by a mutual connection. We chatted all things real estate and I was intrigued by his adaptation to his role, on so many levels. He left his former industry to pursue real estate but also managed a complete relocation from Turkey to Australia only a few years ago. Aside from juggling the move, he would have had to adapt to speaking English, understanding our colloquialisms, and of course, learning all of the regulations and legislation associated with working in the property industry.

What he didn’t have to learn, however, was negotiation.

We spoke about something that many Australians wouldn’t be privy to; practising the art of negotiation at a young age. Unlike many cultures, we generally don’t get exposed to negotiation for small purchases here in Australia.

We go to the shop, we see or ask the price, and we pay it.

However my friend spoke about his negotiation adventures, dating back to an age he can barely remember. His parents would send he and his siblings to the milk bar to buy milk. They’d have to negotiate for their sweet treats with the store owner. His success or failure to negotiate the milk purchase was reflected in the size of the handful of lollies he came home with, as an addendum to the milk trade he managed for his parents.

He asked me if I’d been to Turkey, and I was pleased to say I had been to his beautiful homeland in 2015. He then asked if I’d trawled the Grand Bazaar. Of course, I had. I loved every minute of it and came home with some goods I still cherish.

His face lit up and he was quite animated when he told me how he loved negotiating for his Australian wife when they went to the bazaar. His key instruction to her was to vaguely glance around at all of the handbags, not focusing for too long on her chosen one, and to casually touch a few; all in an effort to demonstrate to the store owner that her non-committal interest was slight. She would then recount to her husband which bag it was that she actually wanted, and he would then negotiate for it moments later when she was out of sight.

It was a fun insight into his jovial nature, but a key point that not so many foreigners would consider when visiting the bazaar. The traders in such an establishment are experienced negotiators and know how to run their stores profitably without price tags on their goods.

Many Aussies who visit Bali regularly will reminisce about some of their exciting adventures when buying goods from traders on the beach, whether it be watches, hats, sarongs or the like. Some find it exhausting, but a great many number of tourists love the sport of negotiating for goods with the local traders and their stories are regaled for years after their holiday.

For those who aren’t familiar with the jostle and back-and-forth, it can be difficult for them to navigate the purchase. It is more difficult on day one of the trip, because the standard price of the goods is often not understood. Luckily, other travellers in the same hotel often shed light on what they paid for similar goods, and comparable sales analysis becomes easy for the purchaser once they have some price points on hand.

The goods are the same, hence it’s easier to determine the right price to pay.

The same cannot be said for real estate, though and it explains why so many buyers are filled with trepidation at the thought of negotiating for something without a clear price tag, particularly when the cost magnitude is so great.

There is much more to negotiating real estate than just decoding the right price to pay. Terms, settlement dates, agent communication, understanding the rules, timing of the offer, and of course managing emotions all come in to play.

For those of us who haven’t grown up with negotiation customs being around us at a young age, the art of their negotiation skills may be a sight to behold.