Summary
Anchoring when selling an apartment | Sami Miettinen #neuvottelija 1. I demonstrate the #anchoring technique using the 00180 Helsinki postal code, a 100 m2 apartment, and Reaktor’s AI pricing engine. Method: Anchor first, anchor credibly, use a reference value, and comment on synergies. Create options, signal freedom of decision and lack of urgency. Source: Matti “Kelis” Keloharju
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Transcript
English transcript derived from validated English subtitles (WebVTT · SRT). Timestamps link to the original video.
00:00 Hey! Sami Miettinen, negotiator. Let’s take this anchoring concept in negotiation as an example. I’m here on my home turf, in the background is the restaurant Kannas. You can get a good hunter’s cutlet there. The postal code is 00180 Helsinki. And let’s use that information to anchor the price of my apartment. Okay, we’ve made it inside now. In the background, by the way, is a brand-new balcony, this lovely one and a half square meters, absolutely shockingly expensive stuff. But one reason, besides the fact that I can now drink a latte here with my wife in the mornings, is that it flipped this apartment’s square meterage over the hundred-and-four mark. That has psychological value, so it was worth taking, even though it was a bit expensive. On top of that, I like using options in negotiations.
01:01 It’s really important to build options. If I hadn’t taken the balcony now, I would never have gotten it either. Okay, so let’s go and sell this hundred-plus square meters. So I looked at Reaktor’s AI thing. The guys had coded it up sort of as a practice project, where the latest sales are pulled from public data and an average is calculated. Well, it says that right now the fair price would be 7,148.04 euros. So how do I start anchoring then? Well, there’s a really important rule in anchoring. So I’d sum it up like this. Anchor first, anchor credibly, anchor using a reference price, and don’t round. This has also been studied academically, I talked about this at length with Matti Keloharju, or ‘Kelis’ as we called him back in our student days, and probably still do.
02:03 And he had a lot of great data on this based on the stock markets. Okay, so let’s go and sell. Hey, here we have just over a hundred square meters, and that makes things easy. I looked and the average price would be 7,148 euros per square meter. But when we were talking there, you said it’s really important to you that your daughter and son get into a good school and daycare, well right there you’d have excellent chances of getting into exactly those. This is the best school in the area, this school district here. And then you’d get into that daycare too. And I can actually help you get those applications underway. And here now there’s been a pretty major pipe renovation done. Bought that balcony there and renovated the inside. Changed, for example, the layout of the rooms.
03:03 There’s no sense in me leaving this place. So this could be sold now for 785,000 euros. So what did I just do there. I used and shared data that the negotiating counterpart can easily verify just by googling it. And then I created these kinds of synergies, which were also tailored specifically to this buyer. and then I also signaled that I don’t have to make this deal. And I threw out that high anchor first, and from there it’s much, much easier to go on and negotiate, than if you were to sit and wait for the buyer’s price offer, which then turns out to be some crazy number, minus ten percent or whatever they come up with. So that’s how this anchoring goes. This is one topic I’m going to talk about with Petri Roininen, who is the CEO of Investors House,
04:04 and chairman of the Finnish Growth Entrepreneurs. So put your questions to me, hey, what would you like me to ask Petri, so we can really get this apartment negotiation and growth entrepreneurship properly nailed down. So thanks by the way for the comments so far. Some have asked for a fun jingle, meaning music for the start and end there. That’s in the works, and this is all a bit of a practice run. So thanks for watching, and if you haven’t subscribed yet, hit that subscribe button. Thanks, bye for now!