Practice Briefing: A comprehensive negotiation framework for real estate professionals (Part II)
| Date | 02 August 2024 |
| Pages | 83-94 |
| DOI | https://doi.org/10.1108/JPIF-04-2024-0057 |
| Published date | 02 August 2024 |
| Author | Thomas Wiegelmann,Horacio Falcão |
Practice Briefing:
A comprehensive negotiation
framework for real estate
professionals (Part II)
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, which is Part II of a two-part series, is to address the challenges faced
by real estate professionals in negotiations, advocating a shift from traditional win-lose strategies to a value
win-win approach and providing a path for this transition. It highlights the importance of continuous
negotiation learning and adaptation in an evolving industry, emphasising the need for a collaborative, ethical
and interest-based negotiation strategy to achieve long-term success.
Design/methodology/approach –The briefing adopts a theoretical and practical approach, combining
insights from negotiation theory with real-world applications in the realestate context. It introduces the seven
elements framework as a foundation for value win-win negotiations, providing a structured method for real
estate professionals to enhance their negotiation skills and outcomes.
Findings –The briefing identifies a historical preference for win-lose negotiation strategies in the real estate
industry, driven by power dynamics and short-term gains. It highlights the limitations of this approach in a
changing industry landscape and presents value win-win negotiation as a more effective alternative that
focuses on mutual gains,ethical practices and long-term relationships. It differentiates value win-win from win-
lose or win-win naı€vestrategies and provides value win-win advice to negotiate when faced with these other
two strategies.
Practical implications –Real estate professionals are encouraged to embrace the value win-win approach
by shifting their mind-set, building strong relationships and communication channels, focusing on interests
rather than positions, generating mutual-gain options, persuading based on legitimacy and finally making the
best possible decision to either commit or walk away to their alternatives. The briefing provides practical
strategies and best practices for implementing this approach, including preparation, option generation and
commitment to mutually beneficial outcomes.
Originality/value –The briefing contributes to the negotiation literature by offering a comprehensive and
practical guide for real estate professionals to navigate complex negotiations. It presents a novel application of
the seven elements framework in the real estate context, emphasising the importance of a value-driven,
collaborative approach in achieving superior negotiation outcomes on average than other common negotiation
strategies.
Keywords Negotiation, Real estate, Negotiation strategy, Negotiation framework, Negotiation skills,
Real estate professionals
Paper type Conceptual paper
Introduction
The Part I of this two-part series (Wiegelmann and Falc~
ao, 2024) highlighted the critical role
of negotiation in the real estate industry and the convergence of multiple factors to establish a
preference for win-lose strategies that eventually became de industry norm.
The practice briefing explains how win-lose is not an outcome or a situation, but rather a
choice to use power to get what one wants in a negotiation, and thus have inherent costs and
risks, such as its openness to promoting unethical and relationship-eroding moves. Given that
Journal of
Property
Investment &
Finance
83
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. 43 No. 1, 2025
pp. 83-94
© Emerald Publishing Limited
1463-578X
DOI 10.1108/JPIF-04-2024-0057
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