Practice Briefing: A comprehensive negotiation framework for real estate professionals (Part I)
| Date | 30 April 2024 |
| Pages | 591-603 |
| DOI | https://doi.org/10.1108/JPIF-03-2024-0034 |
| Published date | 30 April 2024 |
| Author | Thomas Wiegelmann,Horacio Falcão |
Practice Briefing: A comprehensive
negotiation framework for real
estate professionals (Part I)
Thomas Wiegelmann
Bartlett School of Sustainable Construction, University College London,
London, UK, and
Horacio Falc~
ao
Decision Sciences Department, INSEAD, Abu Dhabi, UAE
Abstract
Purpose –The purpose of this briefing is to highlight the critical importance of negotiation skills in the
everyday lives of real estate professionals. It delves into how negotiators must improve their negotiations skills
given the negotiation-intensive nature of real estate. It also helps to handle common pitfalls and challenges in
negotiations, particularly in the increasingly volatile, uncertain, complex and ambiguous (VUCA) reality of the
real estate industry. The briefing offers strategic insights for preparation and negotiation aimed at improving
any real estate negotiator’s average performance.
Design/methodology/approach –The expert opinion piece combines a literature review on negotiation
strategies with practical insights. It addresses the observed under appreciation of negotiation theory and skill,
reflecting on real-world real estate negotiations. The goal is to enhance the use and recognition of negotiation
theory in the real estate industry. The approach merges theoretical analysis with practical application, offering
actionable recommendations to improve negotiation outcomes.
Findings –Thenegotiation-intensivereal estate industryand the transformativeimpact of VUCA challengeson
real estate professionals’ability to adapt and continuously negotiate successful deals clashes with many real
estate’sprofessionalor fixed mind-set overnegotiation historicallybeing an art or a talentand mostly being stuck
withwin-lose strategies.Instead, negotiationis a science that can belearned and deliberatelyimproved to counter
stress-inducedor fear-based responses that lead negotiators toward suboptimalnegotiation strategies, such as
win-loseor naive win-win.However, these dynamicsare preventable.Well-equipped andwell-prepared valuewin-
win negotiatorscan adopt a growth mind-set,study modern negotiationadvice and frameworks to thrivein the
negotiation-richreal estate industry and converteven VUCA challenges into an amazing sourceof value.
Practicalimplications –Realestate professionalscan become moreaware of which and how currentobstacles
and poor choices negatively contribute to their negotiation performance. It contrasts win-lose and win-win
strategic frameworks to enable real estate professionals to become more sophisticated when choosing their
negotiation strategies. The briefing also helps real estate professionals expand their negotiation repertoire
towardsimproved strategic flexibilitywhen managingthe evolving real estateprofession reality and challenges.
Originality/value –The originality and value of the briefing lie in its comprehensiveapproach to addressing
the negotiation challenges faced by real estate professionals. It offers a holistic view of real estate negotiation,
advocating for a paradigm shift from traditional win-lose tactics to a collaborative, value win-win approach.
The briefing integrates modern negotiation theory and emphasises ethical practices, providing practical
strategies and best practices for professionals to improve their skills and adapt to industry changes. By
empowering real estate professionals with knowledge and tools to navigate negotiations effectively, the
briefing contributes to the overall success and professionalism of the industry.
Keywords Negotiation, Real estate, Negotiation skills, Negotiation strategy, Negotiation framework
Paper type Conceptual paper
Introduction
Negotiation, an indispensable part of the business realm, is particularly pivotal for real estate
professionals striving for enduring success. Indeed, real estate is a negotiation intensive
industry given its ever-growing complex nature, multiple stakeholders, high-stakes and large
Practice
briefing
591
As this article is a briefing/insight commissioned by the editor, it has been subject to editorial review
only.
The current issue and full text archive of this journal is available on Emerald Insight at:
https://www.emerald.com/insight/1463-578X.htm
Journal of Property Investment &
Finance
Vol. 42 No. 6, 2024
pp. 591-603
© Emerald Publishing Limited
1463-578X
DOI 10.1108/JPIF-03-2024-0034
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