The seller’s agent advised him to give a little, maybe counter with $237,500 to see what would happen. The buyers came back with $235,000, and, after more negotiations, the buyer and seller agreed on $237,000. So, what can you take from this? Don’t meet in the middle! Instead, give 10% to 20%, and let the other guy give 50%. You’ll gain a little more in each round of negotiations.
COMMON NEGOTIATING MISTAKE #3: Talking Too Much
This is the worst sin of negotiating. Don’t tell the buyers — or their agent — your life’s story. What do you think would pop into a buyer’s head if they heard this out of a seller’s mouth? “We must sell the home because it’s in foreclosure, and if we don’t sell it by June 23, the bank will foreclose on it.” Immediately, the buyer would think the seller is desperate. “I wonder what they owe on the house. Because if it doesn’t sell, they will have a foreclosure. The sellers probably just want to get what they owe on the home, so they can avoid foreclosure.” This is an extreme example, but it shows you how a simple slip of the tongue could cause a seller to lose a large amount of their hard-earned equity. A seller facing foreclosure might be desperate enough to get out with none of their equity, just to avoid foreclosure. But, what if the buyer had been willing to pay the market value for the home? That seller just lost all their equity! When a buyer asks why you’re selling, answer without giving away any extra
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