How to bargain, buying and selling, craigslist, real estate

[Stagleton]

Bargaining is a very important part of saving/earning. I feel like I am pretty bad with bargaining, whenever I buy or sell something I think I could probably sell for more or buy for less.

Luckily I see through a lot of the BS and mostly don't buy crap I don't need and have gotten better with selling the crap that is depreciating rapidly or that I don't see a use for in the future. So, I am doing alright, but I think with a little work I could be much better at bargaining and doing great. Lowballing or screwing people over isn't interesting, just getting the price that something is worth or not overpaying is what I am interested in.

Does anyone have any tips/resources/books on how to get better?

EDIT:
Just some background on this topic: Recently I have sold an old motorcycle I had lying around in my parents garage and sold some realestate in a town where the oil price has killed housing prices. I am working on selling my parking spot and all the bargaining interactions I find very interesting. In the past I have just been a buyer or "accumulator" and now I have a different view of being a buyer after being on the seller side. I think if you have just bought things, it will be very useful to start selling and see what it is like from a sellers POV.

[jmusic]

On the other hand, I had a guy wait to ask for a $10 price drop on a desk I was selling until I ALREADY HAD IT APART AND WAS HELPING HIM INTO HIS CAR WITH IT.

Sorry for yelling.  That was a pretty dick move though. 

FWIW, I had listed it for $60 expecting some negotiation anyway.  Another thing.  If you're selling make sure to always have change for $20 bills if you're not an even multiple. 

[Imustacheyouaquestion]

On the other hand, I had a guy wait to ask for a $10 price drop on a desk I was selling until I ALREADY HAD IT APART AND WAS HELPING HIM INTO HIS CAR WITH IT.

Yeah, that's bad behavior. Buying on craigslist is already a big discount, so there really is no need to act like a jerk. Basic human decency: don't be a flake, don't go look at something unless you intend to buy it (unless there's a major problem with it), respect other people's time, don't ask for unreasonable discounts - if you would sell item X for $Y, then don't offer $Y.

On the other hand, when I sell stuff (aka other people pay me to haul away stuff I don't need!), I provide a very basic customer experience: you come pick stuff up when I'm available, cash only, I have a price in mind and if you offer below it - no deal. I have also had success listing items for $1 and asking people to offer a price, let it go to the highest offer.

[cpa cat]

I really enjoyed learning from the Secrets of Power Negotiating.

http://smile.amazon.com/Secrets-Power-Negotiating-15th-Anniversary/dp/1601631391/ref=sr_1_1?ie=UTF8&qid=1430410767&sr=8-1&keywords=power+negotiating

Of course... I realized that the salesman I'd bought my car from had used pretty much every trick in the book on me.

On Craigslist, I usually try negotiating in my initial offer. After that, I suggest negotiating once you get there and base the negotiation on the quality of the item(s). The most common thing that I think it worthwhile to negotiate on is filth. I've bought items on Craigslist that had undisclosed filth that would take time to clean.

[The_path_less_taken]

For most things in life the "do unto others" covers most of the bases...if you'd be unhappy somebody was late or arguing over a nickel or that insane thing with the desk listed above...don't do that...etc.

But to see a master negotiator in action, go to a car dealership (with a hot pizza, donuts, etc.) and say you're wanting to learn how to close....they will talk to you and might even show you some stuff.

Bottom line: you need to be friendly to get the best deal. Chit chat a bit, ask if that's the 'best price', etc. You have to at least act as thought you want a win/win situation

Dealer: "Mr. Jones, I think we're real close on price here, so I feel good we're going to be able to make this deal work for both of us. You want the car for $1200, we want to sell the car for $1800 but have already dropped it to $1500. The best I can do is split the difference with you: will that work for you? I can drop it to 1350, but that's it." (odds are they're into the car for $600, btw)


On the other side of the desk: "Thank you Mr. Smith, I appreciate your trying to work with me. I'm just stuck with a budget issue here, so instead of wasting your time maybe I should go look back at XYZ Sales down the street: I think they had something more in my price range." Smile/get up/shake his hand and turn away.

Most dealers will try another tiny reductions, or phone you with one within a few hours, day at the most.



Bottom line...if everyone feels that they're being 'heard' and treated with respect...many people will negotiate with you on price.

My favorite line at yard sales is: "That's a very beautiful item. I'd love to have it, it would look great in the family room...but I just can't afford it. But as soon as Bill Gates adopts me I'll be back for it: because I really really like it!"  Which makes them laugh, and sometimes they find more wiggle room.

Best thing to do at yard sales and even most thrift store is ask: "If I get several things, can you maybe work with me a bit on the price?" Worst thing they can say is no, and you're right where you started.

Asking for discounts seems odd at first but it's free money: all they can say is no.

[BBub]

I enjoy bargaining.  Here are my tips which have proven quite effective:

If you are the buyer:

• Always be willing to walk away.
• Don't agree to a price beforehand. Show up w/ cash then make the offer.
• Build rapport, find common ground early on.  You will get a better deal if the seller likes you before you are negotiating price.
• Find something wrong with the item, or several things, and work that into your offer.

If you are the seller:

• Always be willing to forego the sale.
• Try to get a price commitment before the buyer shows up.
• Build rapport.  For the same reason.
• Know the basic sales cycle: build rapport, zero in on the buyer's need, demo, get affirmations throughout, trial close, price buildup, close. 
• Know how to effectively handle objections.
• Know the difference between features and benefits and how to effectively describe them.

[/list]

[TheFixer]

In spite of being a frequent buyer of craigslist junk cars vintage automobiles, I hate negotiating.

Here's my technique.  I call the seller to say I'm interested in looking at the car, but  the asking price is a bit out of my budget.  If they don't immediately say "This car is awesome and the price is non-negotiable", then I go look at it.  Real-life example: looked at a VW rabbit.  Seller was asking $2000.  They apparently had seen that perfect examples were selling on ebay for $5000, so they thought the $2000 ask was fair.  I observed that it was hard to start (bad glowplugs) hard to shift (needed shift linkage rebuilt) had mice living in it, water on the floor, exhaust was loud, charge light was on (needed an alternator), tires were ancient..  I knew that it was an $800 car.  Rather than tell the seller what a POS the vehicle was, making him feel defensive & angry, I just said it was a little rougher than the pics appeared.  Then i lied a little, saying "I have $800 to spend on my next project, And the car is worth a little more than that, but that's my budget, that's all I can spend."  That's the cue to pull the 8 $100 bills out of my pocket that I cleverly arranged there a moment earlier.  If the seller says Okey-doke, then we're done.  In this case the seller said no, he thought it was at least $1200 of car.  I thanked him and hopped in my friend's car to go.  As we were turning around behind the barn, I could see his wife explainin how he had just screwed up by not taking the cash and getting the POS project car outta the backyard.  As we drove back through the yard to leave, seller flagged us down and said "OK, $800 and you get it outta here right now."  Done deal. 

Postscript: I spent another $1200 fixing it up, drove it for a few years and sold for $2500 on ebay.  Not profitable, but zero depreciation.

[Imustacheyouaquestion]

• Don't agree to a price beforehand. Show up w/ cash then make the offer.

I agree with this tactic for big ticket items like cars or appliances. But if someone wouldn't agree to a price on something that's worth <$50, I honestly would just move on to another person with another offer. There are way too many flake-y people on Craigslist for me to risk wasting my time with someone who was never going to make a realistic offer.

[Dee18]

I love the book "Getting to Yes."
My key advice is to recognize that a situation can be "win win."  That is, both people in a bargaining situation can meet their goals end up happy.  Try to get a sense of what the other person wants.  It could be to sell quickly, to sell for the highest price, or even to sell to someone who will treasure the item.  Also, don't feel you have to always get "the best deal."  Decide ahead what something is worth to you, pay no more than that, and be satisfied.

[math-ya]

I sell stuff on Craigslist a lot, and I always sell for a weird price, knowing people don't carry correct change. For example I recently sold an old dryer for $75. The guys asked if I had change. Guess what? I didn't. So I got a $5 tip. This happens with about half the stuff I sell!
No one ever went broke underestimating the stupidity of the American public lol.

[LiveLean]

I buy and sell on Craigslist a lot. A few observations:

1. I don't understand the folks who negotiate sight unseen -- even with my great photos as a seller. You might agree to a price that's more than you'd agree to in person. I never discount over the phone. I'll say, "Sorry, but I've had a lot of interest and I just recently posted."

2. Don't buy furniture unless it's made of metal, wood, or (maybe) leather. We went looking for a sleeper sofa recently and though all three looked good in photos, they were nasty in person. Lesson learned: don't buy something used made of upholstery. I once sold a sleeper sofa made of upholstery in great condition, but it took a while just to get $200.

3. As a seller I'm usually looking at things as sunk costs. I'm done with this item or never wanted it in the first place. I've been on a major purge and in recent months have sold leather jackets, sports memorabilia, and exercise equipment. Lots of money there, but stuff no longer of value to me. Recoup as much as possible, but in the end it's your time. How long do you want to deal with this process?

[gooki]

Thankfully here in NZ online auctions are a much more common way to sell personal possessions.

I list my stuff with a $1 reserve, auction length 7 days, good photos, good description. If I think the item will sell for over $100, I pay the extra $4 for promotion.

There's enough buyers out there I'm pretty much guaranteed to get the fair market price. No haggling, and I know it's going to get sold.

[Stagleton]

Thankfully here in NZ online auctions are a much more common way to sell personal possessions.

I list my stuff with a $1 reserve, auction length 7 days, good photos, good description. If I think the item will sell for over $100, I pay the extra $4 for promotion.

There's enough buyers out there I'm pretty much guaranteed to get the fair market price. No haggling, and I know it's going to get sold.

This sounds like a great way to get a fair price and not deal with all the tire kickers. When I sold my motorcycle I had to get it gone quick so I listed it at a reasonable price (350$ for a running clean title KZ440). There were so many lowballers and people coming by offering 200$; I think I had like 15 people interested. I finally sold for 300$ because I was just wasting my time waiting for people or distracted answering emails. I think an online auction starting at 50$ no reserve was the way to go.

[Le Poisson]

2. Don't buy furniture unless it's made of metal, wood, or (maybe) leather. We went looking for a sleeper sofa recently and though all three looked good in photos, they were nasty in person. Lesson learned: don't buy something used made of upholstery. I once sold a sleeper sofa made of upholstery in great condition, but it took a while just to get $200.

I love buying furniture on CL/Kijiji. But now I only buy in the winter, and I leave it out to freeze for a week or so in the garage/shed. One chair with bugs in it was enough of a lesson that I won't risk it anymore. We need a chair/loveseat for our living room right now, but it will have to wait for autumn. No way I'm paying full price at a furniture store, and no way I'm risking bringing bugs in the house.

[The_path_less_taken]

I love buying furniture on CL/Kijiji. But now I only buy in the winter, and I leave it out to freeze for a week or so in the garage/shed. One chair with bugs in it was enough of a lesson that I won't risk it anymore. We need a chair/loveseat for our living room right now, but it will have to wait for autumn. No way I'm paying full price at a furniture store, and no way I'm risking bringing bugs in the house.

Now that bedbugs are 'everywhere', I'm scared. I have friends in Alaska who left stuff out at below zero for two weeks and still had problems (but I think cockroaches, ick ick ick I NEED A SHOWER NOW, damn it!)

The couch in my den is off cl but I literally snooped through these people's house before I bought: "oh, what a lovely photo" sniff sniff "oh, is that an original oil?"...they must have thought I was a freak but even with their toddler crawling all over I was just petrified about bugs.

I still locked it in the den and bombed that room.

(ok now I do have to go take a shower! I know somebody that got bedbugs from a movie theatre: luckily I'm too cheap for the movies now anyway...unless it's Star Wars. I'll risk it for that.)

[mancityfan]

Negotiating. I follow one cardinal rule. Never give the first number, always have the person you are dealing with put out the first number. Then work from there.