American Negotiations:

• The Good News:
  Unlike foreigners who hone negotiation skills in every visit to the butcher, American buyers are relatively poor negotiators.
• The Bad News:
  American buyers are poor negotiators. They get emotional. They walk away when you characterize their offer as "ridiculous."
• More Bad News:
  Your own emotions can easily kill a good deal. It's hard to smile when the buyer plots to mow down a garden you've slaved over.

 

Some Rules:

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Establish Trust:

• Avoid responses that may offend, even when the buyer calls your wallpaper "hideous," or your favorite rose bush a "weed."
  
• Tell the truth: If the buyer notices water stains on the attic ceiling, blaming it on condensation can destroy your credibility before negotiations start.
  

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Don't waste time with Buyers who can't afford your home:

• Make sure the potential Buyer can qualify for a mortgage loan big enough to cover your asking price.

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The Buyer is not the enemy. Engage him in negotiations. Talk to him!  If offered $10,000 less than your asking price, get an explanation.

• Did the Buyer check the prices of comparable homes?
  
• Is there a perceived defect in the property ?
  
• What is the basis of the low offer ? (the low-baller is often willing to pay close to your asking price)

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Counter Offer:   Let the buyer know you have considered her position.

• Reduce your asking price by a small amount.
  
• Explain how you arrived at your asking price (comparable selling prices in the neighborhood).

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Discuss perceived property defects.
If the buyer believes he or she will have to replace the roof:

• Let her have the roof inspected at her expense.
  
• If the inspection reveals problems, offer to reduce your price by a portion of the cost of repair.

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Be Objective about the cost of holding out:

• If you are paying $1,000 per month to keep the property, selling for  $2,000 below your asking price might be better than holding on for an extra two months.