BATNA is the most common source of power in a negotiation and the most overlooked by inexperienced or undereducated negotiators. This is exactly where you can gain a significant advantage.

In simple terms, BATNA is your backup plan, your walk-away power. Heading into a negotiation without a solid understanding of your BATNA, and at least a general sense of the other side’s, is like driving blind. Failing to understand it and communicate it can lead clients toward poor decisions. Overestimate it, and they may reject an offer they later regret. Underestimate it, and they may leave money on the table.

When a client has legitimate alternatives, their negotiating position improves immediately. Think of a seller with more than one offer, or a buyer who has identified two other acceptable properties. I once offered on an investment property making it clear my price was firm and I wasn’t emotionally attached. The other side signed back at a higher price, apparently believing I would negotiate up. I walked away and purchased a different property within days. They misread my BATNA as weak when it was strong. The failure to properly communicate BATNA cost everyone a deal.

Read the full article and find out how understanding, building, and communicating BATNA can strengthen your client’s position and reinforce your role as a trusted and competent professional.