The Art of Negotiation
Whether it is finalising your salary package or buying vegetables from your local vendor, it is important to have negotiation skills. While it’s all about fighting your way to the right price, it’s not as bad as it sounds. Some people are just born with the tact whereas some have to work on their skills to get the right buy at the right price. There are some basic steps you have to keep in mind when you negotiate for the right deal.
Understand your need
When it comes to buying a house, you need to understand your requirements. For instance, it could be the size of the house, the suburb, your budget, proximity to a school or station etc. But always draw up a list of priorities in a descending order of preference. For example, if you want a 3-BHK house in a particular suburb, closer to the station and with all the amenities such as the gym, swimming pool etc, then you may hardly get one or two options. Consequently, the scope to negotiate is less or none.
This works both for negotiating your salary and buying a house. The idea is to add a realistic quotient to your demands. With respect to salaries, there are various portals like payscale.com, naukri.com etc which have a provision for you to find what salaries you can expect from your job. But you cannot base your decisions just on these portals. You have to back it up with your own research.
For instance, if you had done an MBA 5 years ago, you could check with your batchmates working in the same sector to get an approximate market valuation. You can make it more accurate with a friend working for the same company. Making wrong comparisons with a friend working for a different sector or job profile would be misleading. Similarly, with respect to home buying, you have to do a reality check before you seal the deal. There are real estate portals and also the brokers. Always look at 3-4 options before you sign the deal.
Need for a back-up
Always have a back-up in place. It gives you an edge to negotiate harder. Also, if there is a fallout because of some difference of an opinion or price, a back-up always helps. In such a case, the future employer or a home owner knows that you are not a soft target. But ensure you identify the second-best option well in advance
If you are really interested in the offer, hear the opposite person out. It will give them an idea that you are here for a serious business. Once the person makes the offer, it’s your turn to list out your knowledge and expectations. Then, the employer or the home owner would be interested in taking your negotiations further.
Take your time
Never rush into any big purchase. Your potential employer may coax you to sign the offer letter immediately. Or the home owner or builder may paint a very beautiful picture to woo you for a quick response. If you’re happy with the deal, still take a day or two to revert. Read every fine print, explore the finer details. List them down and compare with your existing options. If there are legal complications, consult a solicitor. Otherwise, get a neutral third-party view from a family member or a friend. It’s never too late to say ‘no’.
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