Collaboration Innovation Trust

Saturday, November 25th, 2023

Mal James

Buy Sell Agent

0408 107 988

mal@james.net.au

Did you miss last week’s 2023 M4 Spring Market 100 Auction Test Wrap for Top End Melbourne – If so then fear not – click here.

At James Buy Sell: Two more solid buys this week – a three-month neighbour purchase and a year-long search for a medical clinic site. All done – a good month with more to come: 26 Kooyongkoot Road (one of Melbourne’s best) closes this week on Thursday with Forbes and 9 Evans Kew (brilliant home) comes to the fore on Tuesday with Bekdon Richards.

Following on from last week’s article I was reading the Boroondara councillor’s response to criticism of their rejection of Granny Flats innovations (click here) – again tin ear, no empathy or care for the plight of younger or older people struggling with housing options.

Boroondara Councillors say they worry about their amenities (yeah their minds are in the toilet) Please think of all your constituents, your younger people, disabled and elderly, who are struggling for housing and what about police, nurses, teachers; who cannot afford to live in your Boroondara, due to red tape and lack of any innovative thought around something…….. like the excellent State Government Granny Flat amendment (no town planning needed). Wake Up Boroondara Councillors – find some heart and get smart or soon you will be the only ones able to live in your castle (and it will be a lonely, boring place)!

Off-Market Camberwell

Off-Market Port Melbourne

In the intricate dance of off-market and EOI negotiations the extra sauce combo of collaboration, innovation, and trust is not just beneficial but often crucial in achieving outcomes that are favorable for you, the buyer, seller and/or even the agent.

This triad forms a robust framework that can transform negotiations from adversarial confrontations stuck in mud into opportunities for mutual gain and long-term relationships.

Often these three “human apps” are the difference in today’s Melbourne market between a deal that benefits all and no deal that benefits no-one.

Collaboration: A Bridge not fully understood

At the heart of many (not all) effective negotiations lies collaboration – the willingness of parties to work together towards a common goal, even when their individual objectives might initially seem at odds. Collaboration in negotiations is about finding synergies (common hot buttons) and understanding that the best outcomes are those where all parties feel they have gained something of value (had those hot buttons lit up).

In a collaborative negotiation, parties are encouraged to openly share information, needs, and constraints. This transparency fosters an atmosphere of cooperation rather than competition. In collaborative negotiation people talk and you listen and then you talk and they listen. No I mean really listen… you hear and you register.

Sidenote: We love competition to find the players (multi-agent) and no doubt a volcanic auction brings results that few skilled negotiators could achieve in the time-frame BUT far more deals at Melbourne’s Top-End involve 1 on 1, than multiple bidders for the seller or multiple best home options for the buyer.

Usually it’s us and them (even if you are told something different) so it helps in identifying the underlying interests (real wants) behind stated positions (agent puff), paving the way for creative solutions (deals) that satisfy the core needs of all involved (feel good) – which is what we think is collaboration.

In real estate you are taught from a young age, via observance of the actions of agents, directors, buyers and sellers that confrontation is the only way to bring superior outcomes – whilst there are few (if any) absolute truths in real estate – this idea that confrontation is more efficient and brings better outcomes than collaboration is baloney, where there is a single buyer and that buyer considers this seller the most desired option (the most common scenario in Top End Melbourne dealmaking).

Innovation: The Key to Expanding Your Pie

Innovation in negotiations refers to thinking outside the box to create additional value. It involves moving away from the traditional zero-sum approach – where one party’s gain is seen as another’s loss – and towards a mindset of expanding the pie so that everyone benefits more.

However innovation of benefit is not always about an alternative idea – the world is full of fresh, new ideas – in fact a lot of land-fill is taken up with these fresh new ideas.

The innovations we like are inventions (new or old) combined with commercialisation (makes money for my client).

And one really old idea/concept we love is innovative thinking.

Innovative negotiators use creative problem-solving techniques to uncover new opportunities. They might reframe the negotiation, explore alternative options that were not initially considered, or find novel ways to combine resources and capabilities for mutual benefit. For instance, instead of haggling over price, parties might explore terms or other collaborative projects that bring additional value to both sides (furniture, lease and yes I have even done a put and call option in real estate).

Trust: The Foundation of Successful Negotiations

Trust is the bedrock upon which effective collaboration and innovation in negotiations are built. Look at the BS going on in the world now. No shortage of money, focus and people giving their best…. but no satisfactory outcome and that is because there is no trust.

When parties trust each other, they are more likely to share accurate information, invest time in understanding each other’s needs, and commit to mutually beneficial agreements.

Building trust in negotiations requires consistency, honesty, and respect. It involves honouring commitments, communicating openly, and showing empathy towards the other party’s perspective. Unfortunately, in our business many simple deals start behind the eight ball locked into the cushion, with no easy shot out – almost entirely due to a lack of trust in the industry, not lack of money, common ground or no desire for an outcome.

Once trust is broken the deal has a far greater chance of failure, even when success was in all parties’ best interests. I keep repeating this truism, in real estate in Melbourne, many buyers and sellers walk away from their best deals when they fear, when they have lost trust ……… and often their next decision is simply to get the pain gone, even though deep down they know it is a lesser outcome.

The Cooperation of Collaboration, Innovation, & Trust

The synergy of collaboration, innovation, and trust leads to several key benefits in negotiations not only now but into your future:

More Sustainable Agreements: Agreements reached through a collaborative and innovative process are often more durable because they address the underlying interests of all parties. And when parties feel heard and their needs are addressed through innovative solutions, the satisfaction with the negotiation process and its outcome is generally higher.

Happy wife, happy life or the more pc happy spouse, happy house. + agent repeat business.

Stronger Relationships: Negotiations based on trust and collaboration help in building long-term relationships, which can be valuable for future dealings. For agents this is critical to their business. I make a great living and business comes to me I think based on trust…. nobody has ever come back to do another deal because they said I’m gorgeous, they like my clothes or they find my personality scintillatingly interesting. So, I was thinking it’s trust – but maybe I am gorgeous or it’s the hat or Sim, Gina or Kathy… now those three are gorgeous.

Reduced Conflict and Enhanced Reputation: A negotiation style that values trust and collaboration over confrontation reduces the likelihood of disputes and enhances the reputation of the parties as fair and ethical negotiators. Again, good for the future.

Digressing… is repeat business because I’m good looking or there was trust and vice-versa when I don’t get it right…. did a client not return due to my hat or lack of trust….. sure value is another ingredient to throw in……..but that I think is intertwined with trust.

The combination and interaction of collaboration, innovation, and trust in negotiations transform the process into the potential for win-win outcomes NOW + into the future for you in other negotiations.

In a world where things feel like they are getting harder, these concepts and skills are far more valuable in high-end Melbourne real estate than some social media boost, tricky auction bidding tip or cheaper commission offering.