Make an honest offer – The old way of thinking implies that no one wants to make the first offer, because they are afraid of the money that might be “left on the table.” While in real estate the first offer is made by the seller’s listing price, some buyers may hesitate to make an offer. Thinking to themselves “If the home is listed at $150,000, how low can I really go? What’s the seller’s markup?” Help your clients avoid this line of thinking. Remind them that when you are negotiating a purchase as involved as a house, both parties are going to be well informed and know the value of the property. Giving an honest first offer is the best way to start.
Concede for a reason – If the buyer asks you to cut your price, then cut something out. Don’t just give them everything you where offering in the original proposal, maybe a lower price means you won’t be leaving that brand new washer and dryer you just installed. If the tables are turned and the seller is asking for more, then the buyer should ask for more as well. Maybe suggest the seller re-carpets a room before they move out.
It’s not a game – Don’t approach a negotiation like a game with a winner and loser. The best negotiations should end with both parties feeling like they are receiving something of value. Try to establish a relationship – not bully the other party to the point they will most likely walk away from the entire transaction.