The seller thought the buyers were being good people by meeting in the middle. He was willing to accept their $230,000 offer. The seller’s agent advised him to give a little, maybe counter at $237,500 to see what happened. 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: AKE #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 buyers’ heads if they heard this out of a seller’s mouth? “We must sell the home because we’re moving out of province next month, and if we don’t sell it by June 23rd, we’ll need to pay two mortgages until we can rent it out!” They might think, “Hmmm, it sounds like they’re pretty desperate to sell quickly, and that they can’t afford to pay two mortgages. I wonder how low I can go on my offer!” This shows you how a simple slip of the tongue could cause a seller to lose a large amount of hard-earned equity. The buyer would be correct — the seller needs to sell before they move! But, what if the buyer would have been willing to pay the market value for the home without knowing that information? That seller just lost all his equity! When a buyer asks why you are selling, answer without giving away any extra information.
48
Powered by FlippingBook