5 Critical Factors to Consider in Team Negotiations

Negotiation is a complex subject, which is why countless courses, websites, and books offer guidance on mastering the process. These resources are invaluable for individual negotiators. However, what’s often overlooked are the unique challenges a team faces during a negotiation. More importantly, how can a team succeed in such scenarios? Let’s delve into team negotiation dynamics and explore strategies for success.

Negotiations become more complicated when multiple negotiators represent one side. This added complexity can work for or against a team, depending on how well-prepared and knowledgeable each member is.

For instance, in a one-on-one negotiation, an individual negotiator only needs to consider their client’s interests. But when a team is involved, individual preferences and priorities must also be factored in, which can create tension.

Team dynamics shift negotiation dynamics and affect what happens at the table. According to Lewicki, Saunders, and Barry (2006), a team should consider five key factors to ensure a successful negotiation.

Related Article: 11 Tips to Master Real Estate Negotiation

Key Takeaways

• Team negotiations are inherently more complex than individual ones. The added challenges stem from differing perspectives, personalities, and the need for a coordinated approach.
• Success hinges on several factors: the number of members, the complexity of the information, social interactions, procedural elements, and strategic planning.
• A well-prepared team with clear goals and defined roles is critical for success.
• Preparation includes researching the opposing side and aligning internal objectives. Maintaining a united front and assigning specific roles, such as a lead negotiator, improves communication and outcomes.
• Attention to detail in the final agreement is crucial to avoiding disputes.

5 Factors to Consider in Team Negotiations

When negotiating as part of a team—such as when closing a commercial real estate deal—a different set of considerations comes into play. Here are five key factors to keep in mind.

1. Number of team members involved

When teams negotiate, it’s essential to ensure each member has the opportunity to contribute. Important questions arise: Do teams behave differently than individuals? How does the presence of a team change interactions with the other side? Does every team member have an equal voice?

2. Informational complexity

More participants bring additional perspectives, issues, and positions to the table, making it harder to address all the contract details.

3. Social complexity

Team members’ personalities can impact negotiations. If one person is a competitive (distributive) bargainer while another prefers a cooperative (integrative) approach, friction can arise as they push for their own negotiation style.

4. Procedural complexity

Presenting an offer becomes more complicated with a team. Team members may need to coordinate on how they’ll manage the process—such as opening statements or how offers are presented. A lack of cohesion could signal disorganization to the other side.

5. Strategic complexity

Teams must continuously monitor both internal actions and the external moves of the opposing party to determine the best course forward in the negotiation.

Managing Team Negotiations

With the increased complexity of team negotiations, how should a real estate team approach the process effectively? Lewicki et al. (2006) identified three key stages for success: pre-negotiation, formal negotiation, and agreement.

Pre-negotiation stage

In this stage, team members prepare by setting objectives, assigning roles, and conducting research. Ensuring that every member understands their responsibilities and the overall strategy is vital for success. This phase is crucial for aligning the team’s goals and being well-informed on critical issues, like property prices or client preferences. Teams must also analyze the opposing party’s position, study market trends, understand client motivations, and identify potential obstacles. A well-prepared team enters negotiations with confidence, improving their chances for a favorable outcome.

Formal negotiation stage

In this phase, the team engages the opposing side. Clear communication, coordination, and adaptability are essential. Each member should contribute according to their expertise while presenting a unified front. Real estate teams often benefit from having a lead negotiator, while other members focus on observing body language, asking clarifying questions, or offering technical insights. This division of labor ensures that nothing is overlooked and that the team can pivot as needed.

Agreement phase

Once terms are settled, the focus shifts to finalizing the agreement. Here, attention to detail is critical—any ambiguities could lead to disputes later. The team must review the terms carefully to ensure they reflect what was negotiated. In real estate transactions, this often involves drafting or reviewing contracts, finalizing inspections, or securing financing. The team must stay proactive to ensure a smooth closing.

In summary, team negotiations are marked by increased complexity, making it essential to manage the process carefully. Understanding the five factors outlined by Lewicki et al. significantly boosts a team’s effectiveness and success. Whether negotiating solo or as part of a team, consider additional training through the Real Estate Negotiation Institute (RENI). RENI provides expert techniques to help you close deals faster and deliver greater value to your clients.

Learn more about RENI certifications and enroll today.

Sources:

Kolb, D. M., & Williams, J. (2003). Everyday Negotiation: Navigating the Hidden Agendas in Bargaining. San Francisco, CA: Jossey-Bass.

Lewicki, R. J., Saunders, D.M., & Barry, B. (2006). Negotiation. New York, NY: McGraw-Hill.

Shapiro, D. (2016). Negotiating the Nonnegotiable: How to Resolve Your Most Emotionally Charged Conflicts. New York, NY: Viking.