What do you think would pop into buyers’ heads if they heard this out of a seller’s mouth? “We must sell the home because it is in foreclosure, and if we don’t sell it by June 23rd, the bank will foreclose on it.” Immediately they would think, “I wonder what they owe on the house. Because if it doesn’t sell, he will have a foreclosure. The seller probably just wants to get what he owes on the home so he 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 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 would have been willing to pay the market value for the home? That seller just lost all his equity! When a buyer asks why you are selling, answer without giving away any extra information. You could say, “Oh, we would like to move to Omaha.” (Or whatever place you are moving to.) You don’t need to say much more than that. And don’t tell them you have a job transfer! COMMON NEGOTIATING MISTAKE #4 MAKING THE FIRST MOVE Many buyers will ask what your bottom line is. They know they can usually negotiate a home seller down to an even lower price. Don’t fall for it. You’ve already made the first move by setting a price for your home. Tell the buyers you need to think it over and get back to them. Then, ask them what they like about your home. If they tell you, you can determine their motivation to buy your home. After that, ask them what they are thinking of offering on your home. This rule is important because in some negotiations, you might offer more at the beginning than the other party is willing to accept. Here is an example. A person I knowwas trying to buy some equipment. He thought the best price he could get was $1,500, but he was willing to pay up to $2,000. He asked the seller what he wanted for the items. The seller responded that he didn’t know what he wanted. He offered to pay $1,500, and the seller accepted it.
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