Non Verbal Cues During Negotiations in Real Estate Investing

Negotiations is not a science, rather it is an art and the degree of success most often depends on the negotiator’s knowledge and application of various tips, strategies, and tactics.  No matter how good you are, you will not always be able to produce a successful negotiation.  Some negotiations inevitably fail to achieve agreement.  The specific purpose of this brief article is to assist you in one aspect of negotiations that is frequently overlooked:  picking up on non-verbal cues while negotiating real estate transactions.

The following are some clues as to whether or not the seller or the buyer is losing interest in what you are discussing:

1. Watch the direction of their feet.  If the feet is pointing towards the door, you are losing them.  If the feet is pointed towards you, you have their interest.
2. Closed palms, crossed legs, or folded arms can indicate a closed person, or someone who is suspicious or not buying what you are saying.
3. A hand to the back of the neck or a finger in the collar could also signal that the person is losing interest in what you are saying.
4. An object in someone’s mouth, such as a pen or paperclip, means that the person isn’t being ‘nourished’ by what you are saying and requires more information.
5. Lack of eye contact or lint picking or flicking of the fingers can be a sign of boredom or lack of interest as well.

The following are non verbal cues that the person has interest in what you are saying

1. Nodding their head indicates agreement and understanding
2. Leaning forward while you are speaking shows a good connection is being made and there is interest in what you are saying
3. Open gestures can indicate that the other person is interested and you should proceed, such as open palms, leaning back in a chair with arms open (not crossed), and nodding
4. Touching can be a sign of acceptance
5. Head tilts can mean interest as well

Successful real estate investors are able to ask questions to find the pain point of the person with whom they are negotiating.  Your counterpart will not always verbally tell you the truth, but the reaction of the body does not lie.

For example, I was once seeking to purchase a house subject to the existing finance remaining in place and was discussing the monetary value of the proposition and noticed that my customer has leaned back and crossed his arms. Money was not important to this individual and I quickly shifted focus to other benefits of a sub-to transaction.  When I started discussing the speed in which we could purchase, take over payments, and take over responsibility of the house, he leaned forward and titled his head.  I later found out that he had moved to San Antonio and was tired of owning a house 90 miles away.  Money wasn't the issue; getting rid of the house in one week was the major interest.  My line of questioning had not evoked this answer, but the body does not lie.