during antique auctions, construction job bids, and car sales.
Time is a powerful negotiation tool. Real estate agents advise buyers that a seller under pressure will provide the best bargain. For this reason, smart home shoppers will obtain as much information about the seller as they can get. For example, if a buyer knows a seller is in foreclosure and must sell before losing the property, the buyer has the upper hand. He or she knows the seller is under a time constraint and will use that knowledge to make low-ball offers. The buyer might also “play it cool” and not return calls and messages promptly, in an effort to spike desperation in the seller. Buyers look for time-sensitive situations to push their price. Sellers who are behind on mortgage payments, recently retired, or are under contract for another home dependent on this home sale are candidates for high-pressure tactics from savvy buyers. Buyers may come to you and ask questions to find out if any of these situations apply to you. Eagerness to please them may be read as desperation. Buyers also play the waiting game. In real estate, acceptance time can be a powerful tool in price negotiations. From a buyer's perspective, the longer the house has been on the market, the more flexible the seller will be. The same applies to negotiations. The more buyers prolong the time spent in negotiating the sale, the more likely they will get the price they want. Buyers will invest time with you to create relationships, trust, and willingness on your part to agree to their terms. The advantage that may arise for you is that they may not want to walk away empty-handed after gaining your trust. By exercising patience, you can maintain your position on terms and price.
KNOWLEDGE IS POWER
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