Author Topic: Negotiation - when you think the seller can go lower  (Read 1532 times)

lilmisssunshine

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Negotiation - when you think the seller can go lower
« on: February 14, 2017, 10:01:58 PM »
I have heard time and time again that you make your money when you buy. I suppose this question could apply to all kinds of negotiations, but I decided to ask here in the real estate section since I am currently in this situation. Most people set their prices a little higher than what they want as a way to prepare for the haggling of negotiation. But once the process has started and offers have gone back and forth and you finally figure out what price the seller truly does not want to drop below, are there any techniques that help to get past that point? Curious what master negotiators do when they get to this sticking point with the seller.

Drifterrider

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Re: Negotiation - when you think the seller can go lower
« Reply #1 on: February 15, 2017, 05:11:44 AM »
I have heard time and time again that you make your money when you buy. I suppose this question could apply to all kinds of negotiations, but I decided to ask here in the real estate section since I am currently in this situation. Most people set their prices a little higher than what they want as a way to prepare for the haggling of negotiation. But once the process has started and offers have gone back and forth and you finally figure out what price the seller truly does not want to drop below, are there any techniques that help to get past that point? Curious what master negotiators do when they get to this sticking point with the seller.

Wait them out.  Be willing to walk away.

Watched a VA foreclosure drop in price $5K at a time.  Once it hit $45 I offered $42,500.  They countered at $44K.  I didn't respond.

Two weeks later the asking price dropped to $40K.

If you want to have the most control/power, be willing to walk away.  I also insist my realtor present my offer with the words "My client would like to pay XXXXX for this house".

lilmisssunshine

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Re: Negotiation - when you think the seller can go lower
« Reply #2 on: February 15, 2017, 09:40:33 AM »
When you present the offer with the words, "My client would like to pay xxxx for this house," do you feel it sets a price point with the seller? How often have you received that price?

Fishindude

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Re: Negotiation - when you think the seller can go lower
« Reply #3 on: February 15, 2017, 09:54:04 AM »

Wait them out.  Be willing to walk away.

Watched a VA foreclosure drop in price $5K at a time.  Once it hit $45 I offered $42,500.  They countered at $44K.  I didn't respond.

Two weeks later the asking price dropped to $40K.

If you want to have the most control/power, be willing to walk away.  I also insist my realtor present my offer with the words "My client would like to pay XXXXX for this house".



I agree with this.  There is a chance you could lose it when someone else jumps in, but that's the chance you take.
A cash buyer is also in a  stronger position than someone needing a loan, so make that known if that is the case.  You can close much quicker.

My experience with realtors is they don't work real hard to get you a deal.  Their primary effort is to get you to agree to the price (or something real close) so they can close and collect commission.



lilmisssunshine

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Re: Negotiation - when you think the seller can go lower
« Reply #4 on: February 15, 2017, 10:35:49 AM »
That's exactly the boat I am in. I don't feel my realtor is really working on getting the best price. I feel he is just pushing to get the sale closed. I understand his position, but this is my money.

Drifterrider

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Re: Negotiation - when you think the seller can go lower
« Reply #5 on: February 15, 2017, 11:34:03 AM »
When you present the offer with the words, "My client would like to pay xxxx for this house," do you feel it sets a price point with the seller? How often have you received that price?

It is a negotiating tactic.  "I would like to pay" conveys more meaning than "I offer".  It is like asking "would you like a mint" instead of saying "your breathe stinks".  I also insist my realtor discusses the price on the phone while I'm there instead of wasting my time on paperwork.  Do the paperwork after you've negotiated. 

In the end, I have a price point over which I'm not going (this applies to everything from a house to sodas in the grocery store).

MightyAl

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Re: Negotiation - when you think the seller can go lower
« Reply #6 on: February 15, 2017, 11:56:21 AM »
When you present the offer with the words, "My client would like to pay xxxx for this house," do you feel it sets a price point with the seller? How often have you received that price?

It is a negotiating tactic.  "I would like to pay" conveys more meaning than "I offer".  It is like asking "would you like a mint" instead of saying "your breathe stinks".  I also insist my realtor discusses the price on the phone while I'm there instead of wasting my time on paperwork.  Do the paperwork after you've negotiated. 

In the end, I have a price point over which I'm not going (this applies to everything from a house to sodas in the grocery store).

I can't recollect what the wording has been on the offers for any of the houses I have sold.  Maybe it is just me but I could care less about semantics. 

The strongest position is being able to walk and doing it.  I had a realtor call my realtor a week after we had finished negotiating and asked why we hadn't countered.  I was shocked because their price was about $10k high and they hadn't wanted to budge off that plus we found a better house in the process.