Do you prefer to negotiate a price or have your offer accepted first go?

[pennyk]

We are just beginning the process of selling an IP. We sold one in 2003. One of the things I found was that lots of people offered what we wanted as their first offer. $350K. We immediately accepted the offer and they never followed through. We ended up selling for.. you guessed it $350K. But it was about the 10th offer we had received and after several months.

So, I'm wondering whether I would have been better off negotiating with people, so they felt like they were getting a bargain. If I accept the offer straight away, do they feel that they are getting ripped off and must be paying too much? So, even if I plan to accept an offer, should I try to negotiate, so that the prospective purchaser feels that they are getting a bargain?

Any experiences or thoughts to share? Certainly what I've heard from sales seminars seems to indicate that negotiating a price is the way to go to make people feel they are getting away with a better price.

Pen

[Kenny]

Hi Pen,

Human nature and the need to affirm one's decisions is one of the fun things about negotiating, I think.

If I was to make an offer and it was accepted right there, my first impression would also be one of;

"Oh no, I've made a miscalculation and am going to pay too much." or

"What have I missed?" etc

May be that's just a lack of self confidence on my part but it's reasonable to assume others will feel the same; esp. first timers.

One way of possibly defusing this risk is to include a slightly unreasonable condition in the contract. When they pick up on it and want to negotiate, you could eventually concede graciously or use it as a bargaining chip. If they don't pick it up, then you win more. :)

My aim is always to try for the much talked about "win - win" outcome in negotiations. Both parties should walk out of the deal satisfied if not ecstatic.

Have fun,

Kenny

[keithj]

Any experiences or thoughts to share? Certainly what I've heard from sales seminars seems to indicate that negotiating a price is the way to go to make people feel they are getting away with a better price.A friend of mine has just sold & bought another PPOR. When selling (at a sensible price) he received a reasonable offer, the agent recommended he put a counter offer just above, it was accepted.

And the same happened when buying - he made a silly offer 15% below asking, and a counter offer came back 5K above his offer, he took it.

I think agents know all about 'buyers remorse', and make recommendations accordingly. It also makes them look good if they 'squeeze another $5K out of them'.

KJ

[Pete]

Negotiations can be most interesting.

Eventually one person meeting the other's offer is required - if a deal is to occur. Some people absolutely must have their offer accepted; rather than them accepting the other's offer.

A whole field of study in its own right.

:)

[agent 86]

Some people absolutely must have their offer accepted; rather than them accepting the other's offer.

A whole field of study in its own right.

:)

Pete,

That is real interesting.
Must take more note.

A86

[David E-Noosa]

Pete is spot on the money.

Its all part of a negotiators tool kit, getting agreement without either party feeling they "gave in"

Its an art form, the best negotiators look like they are doing very little and are merely passing on information. My wife tells me I am playing god sometimes, specially when doing two different sales at one time. I am not, I am just doing the job my employer (seller) entrusted me with.

I have had sales people almost buckle at the knees when faced with a offer so low its almost insulting, I just smile and say to the buyer "lets see how we go"

People must feel they made the decision, were not coerced or pressured.

At the end of the day (always wanted to say that) realestate is not sold, it is purchased, we act as a conduit to enable the parties to conclude the transaction.

btw a good saleperson is a sucker for another good salesperson, we acknowledge the skill.

ps where's wally ... oops I mean wow

[buzzlightyear]

Are we buying or selling here? If I am selling - offer accepted first go is my clear favourite.

[Brizzy Boy]

Hi Guys,
have only been in this game for the last 15 months and still learning.
First thing though I have never sold a home so I can not comment on how I would act in the above circumstances.
The IP's I have bought during the period that I have been purchasing I have always offered lower than the sellers asking price, then the seller has come back with another price which in all cases I have accepted maybe a little to quickly.

I am getting more experiance each time I buy as the difference between what the seller wants and the amount that I offer is getting larger, I negotiated a deal for my 21yo daughter and I offered 10k less than the asking price. This was accepted by the seller within less than an hour, my daughter was over the moon! But this made me think did I offer too much to start with could I have offered 15 or 20K less!!!
"It is all a game of chess the way I see it."

Regards
John

[Pete]

I'm sure some forumites could relate some very interesting negotations.

Especially the agents who deal continuously with it. Maybe a good subject for a new thread.

Another one, might be recommended books on negotiating strategies?

[David E-Noosa]

Pete

"It's not about the money.

Eggzakerly