In Real Estate, perhaps more than most industries, much of the work requires good negotiating skills.  Whether you are helping clients buy or sell as an agent, or recruiting an experienced agent, there are numerous opportunities to practice your skills.  Do you trust your skills?  Or, do you need to brush up on them?

The surprising news, according to researchers Anderson and Ross (Journal of Experimental Social Psychology), is that your techniques may play a considerably lesser role than you would imagine.  So, what does matter?

Before I tell you the answer, allow me to describe how Anderson and Ross set up their research:

Varda Liberman and colleagues had undergraduates negotiate with a postgraduate student (Stooge- who was told nothing of the purpose or design of the study) about the division of university funds between undergrad and post-grad students.  Half of the undergrads were told that previous negotiations had reached agreement (a positive expectation), and half were told just to "try their best" (no expectation).  The result was that all 17 of the "positive expectation" group reached an agreement, while only five out of 17 of the "no expectation" group agreed.  Also, the positive group rated the offers made to them as much more fair and were more satisfied with the outcome.

Another, much tougher experiment required Jewish Israeli Business School students to negotiate with an Arab Israeli woman over the division of funds between Israel and Palestine.  You can imagine all the pre-concieved biases that would potentially have a negative impact on this discussion.  But, again those who had their expectations set toward a positive outcome found far greater agreement (31/38 vs. 13/38), and were also happier with the outcome.

So, clearly, what we anticipate greatly influences outcome.  If you go into a negotiation believing the worst, and expecting to be taken advantage of, you're likely to be too aggressive and competitive.  Your motive is to win "the battle."  Or, on the flip side…if you are overly concerned about offending and are too passive, you might make easy concessions and likewise, not be pleased with the result.

So, why does positive expectation work?  Positive expectations breed trust and acceptance of the other person as a reasonable, rational person.  That in turn creates a baseline of legitimacy of both parties needs, and minimizes the gamesmanship.  The jockeying for the best maneuver to "win" is no longer the central goal.

Now don't get the wrong idea… It's not that it makes you blindly trust the other person.  You still retain the right to assess whether your opinions/beliefs are being considered as well.  Expectations can remain high.

The overall principle is a simple one:  Assume the best in people first, and your success will improve.  The right principles are always the eternal ones.  They aren't just the right things to do…they are what's best for everyone.

In the next edition, I'll share how this principle is vital for those who recruit, train, and mentor new agents.

Reference:  Liberman, V., Anderson, N., and Ross, L. (2010).  Achieving difficult agreements:  Effects of Positive Expectations on negotiation processes and outcomes.  Journal of Experimental Social Psychology, 46 (3), 494-504 

Editor's Note: This article was written by Dr. David Mashburn. Dave is a Clinical and Consulting Psychologist, a Partner at Tidemark, Inc. and a regular contributor to WorkPuzzle. Comments or questions are welcome. If you're an email subscriber, reply to this WorkPuzzle email. If you read the blog directly from the web, you can click the "comments" link below.