Mandatory - Communication and Negotiation (L2)

Question 1

Mentioned in summary of experience

Can you give an example of where you have demonstrated Effective Communication Skills?

Answer 1

Prospective client enquired about our services ahead of retirement and selling their dental practice:

• face to face meeting to establish relationship and outline service
• follow up email to summarise discussion and outline next steps
• we were instructed and I drafted sales particulars which we discussed on the phone before marketing

Question 2

How would you prepare for a negotiation?

Answer 2

• Agree with your client’s objectives and negotiating strategy before starting the negotiations
• Detailed research and preparation
• Deciding what points you can concede on and which are non-negotiable
• Understand the other party’s position
• Develop a partnership/collaborative approach, rather than an adversarial approach
• Walk away when you need to

Question 3

Tell me about a time when you had to demonstrate effective negotiation skills.

Answer 3

When selling our services as an agent, we offered a guide price of offers over £600k for the leasehold goodwill interest of a dental practice. I quoted a 3% agency fee.

The prospective Client said that another agent was prepared to sell it at a fixed fee of £15,000 with a guide price of £625k - so why should they pick us?

I explained that our standard fee starts at 3.75% because we are the best at what we do in the market, and that our fee of 3.00% was very fair. I explained that the other agent has no incentive to work in your best interests on a fixed fee, whereas our fee proposal incentivises us to get the best possible price for your business. The other agent could price chip your asking price to £575k and still get paid the same. You may pay us slightly more, but your end result will be better.

Question 4

What makes effective communication?

Answer 4

• Clear
• Concise
• Complete
• Courteous

Question 5

How have you been able to improve your oral and written communication skills?

Answer 5

• Business meetings with clients
• Working collaboratively with other parts of the business
• Writing reports

Question 6

What are key ways to improve collaboration in a team?

Answer 6

• Establish team goals
• Communicate expectations
• Encourage cohesion between team members
• Leverage team member’s strengths
• Recognise and encourage collaborative behaviour

Question 7

Why would it be beneficial to have greater diversity in the industry?

Answer 7

Greater talent pool
Increased innovation

Question 8

What is the RICS doing to encourage diversity?

Answer 8

• RICS launched the Inclusive Employer Quality Mark (IEQM) for firms to sign up to
• Achieved gender parity on the Global Executive Team
• Setup diverse working groups e.g. LGBT+
• Collecting demography data

Question 9

What are the five stages of a negotiation ?

Answer 9

1. Prepare
2. Define the ground rules
3. Clarify
4. Bargain
5. conclude