6 How to Become a Better Negotiator

every dollar you manage to trim from the seller’s price is a gain for
you and a loss to her. But if you think creatively, you may find
opportunities to create value through trade. Consider this ex-
ample:

The seller of a house you want to buy is asking $450,000. This

seller obviously values money (as do you), but ask yourself, Is
there something I could painlessly trade off in return for a lower
price? A bit of dialogue with the seller may reveal that she is
also concerned with the timing of the sale. You may find, for
instance, that because of a job transfer to another city she
wants to purchase a new home in November. Her plans would
be disrupted if she could not unload her house and buy the
new one at the same time.
And so your creative side tells you, If I were to buy her
house in, say, September, she’d have to store all of her furni-
ture and rent an apartment for two months—both major has-
sles. You can create a trade this seller will value if you say, ‘‘My
schedule is flexible. I can accommodate your situation and
conclude the sale in November if you are willing to come down
a bit on the price.’’ She may figure that the hassle of storing
her furniture for two months—and two months of apartment
rent—is worth $5,000. And so, in horse-trading fashion, she
may say, ‘‘Great! If we can close the sale in November, I’ll re-
duce the price to $445,000.’’

Thus, by understanding the interests of the other side—and by

applying a bit of creativity—you will have created a situation in
which both parties are better off. Win, win! These situations emerge
from an understanding of the other side’s interests. We’ll return
later to the importance of understanding the interests of the partici-
pating negotiators—both yours and those of others. The better you
understand those interests, the more effective you’ll be as a negoti-
ator.

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