compromise, but there is no reason you need to do this.
Let’s look at an example of why this isn’t a good idea. Tina’s house was on the market for $140,000. After only two days, buyer Sandra offered $120,000, which Tina’s agent smartly rejected. Sandra came back with $130,000—smack dab in the middle. Tina thought this sounded good and was ready to accept, but, again, her agent told her to negotiate a little more, since it was clear Sandra wanted the house. Tina listened to her agent and countered at $137,500. Sandra offered $135,000 and again, Tina’s counter just shifted slightly—this time to $137,000. Sandra agreed, and Tina accepted the offer. This is why you should never meet in the middle. Let the other person try that, while you counter with a 10-20% reduction. By listening to her agent, Tina sold for 97.9% of the original list price and $7,000 more than if she’d accepted Sandra’s middle-of-the- road offer. Another common negotiation error is not finding out why the buyer wants to buy. Did they fall in love with the view or the number of bedrooms? Are they rushed for time? The easiest way to find out is to just ask them. Find out where they’re moving from, what they like about your place, and how it’s similar to or different from the other homes they’ve seen. You don’t want to be too blunt, though, so consider something like, “We love our town’s great school system. How are the schools where you live now?” Just start the conversation and listen carefully. Chances are they’ll say something that will be helpful in your negotiations. As you learn about their situation, don’t forget to take the buyer’s perspective. This includes figuring out what they want and need and also noting their job and temperament. Are they a tough- talking CEO or a go-with-the-flow freelance artist? The negotiation will go much better when you take an approach that’s tailored to the buyer’s personality.
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