Don't Ask Questions

Today I'll share one of my favourite techniques for negotiating better deals.

October 6th, 2023

Read Time: 2 minutes

How much money could you make if you could read minds?

Imagine.

You'd have honest answers to questions like, "What would you sell that building for?" or, "Why are you selling?" or, "What's the most you can afford to pay for this?"

Negotiations would be quick, and fruitful.

Today I'll share a technique I use all the time when negotiating apartment deals. Apply this - and you'll be one step closer to becoming a mind reader.

Hopefully, it helps you make your next deal that much sweeter.

Let's dive in.

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*We're pleased to announce another successful sale. Colliers led the sale of 139 University Ave W - which represents a huge win for affordable housing. Originally used as an 88-unit student housing facility, the property will now be a permanent fixture for much-needed supportive housing in the area. Congratulations to the Region of Waterloo on their successful purchase. Congratulations to WCRI - who was able to use the proceeds to expand its footprint considerably (more on this next week). Reach out to [Dayma Itamunoala](https://www.collierscanada.com/en-ca/experts/dayma-itamunoala) to learn more.

Address: 139 University Ave W • Price: $11,200,000 • Student Beds: 88*

One of the best books I read last year was The Truth Detector.

In it - ex-FBI Agent, Dr. Jack Schafer details strategies he used to gather counterintelligence - on murderers, white supremacists etc.

You can use those same strategies to ellicate the truth when you're doing deals.

The main rule - don't ask questions.

Instead, use presumptive statements.

A presumptive statement is a technique where you make an assumption or present a statement that presumes specific information. The goal is to prompt the other person to correct, confirm, or expand upon the statement, thereby revealing more information than they might have intended. It’s a subtle way of gathering information without directly asking questions.

Contrast with Asking Questions: When you ask direct questions, the other party is fully aware that you are seeking specific information. It can make them more guarded and less likely to share openly. In contrast, a presumptive statement is less intrusive. It feels like a part of the natural flow of conversation, making the other person more comfortable and likely to reveal information.

For instance - if you ask, "What price do you need to hit to sell your building?"

The owner will respond with:

A) "I'm not telling you that" or

B) A lie (i.e. an unreasonably high price you know they've made up).

Instead, you use a presumptive statement.

"I heard you guys aren't willing to sell unless we get you $15M".

Owner's response:

"No! We need at least $16M to consider a sale."

Much more helpful.

Another Example:

Conventional method (asking the question):

"Hey Buyer - how much more room do you have in your offer?"

Response: "Not much" (guarded).

Instead - use a presumptive statement.

"You guys assembled the other two properties and this is the key piece. On a land residual you guys can pay $15M for this".

Response: "No, we're still working on the second owner, and we can't pay more than $14.5M"

Better.

Now I've obviously simplified things here. But honestly - I use this technique all the time to help my clients win.

You can use it to uncover potential risks with a property, seller motivations, buyer and seller strike price and anything else where someone would otherwise hold their cards close to their chest.

Hope you find it helpful.

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