Yesterday I published 10 styles of negotiation.
Here are some additional tips, many of which I learned as an arbitrator and settling lawsuits.
The Do Not Do’s of Negotiation
1. Never “tip your hand” on anything
Don’t say that you have to move, got a new job or hit the lottery. Never say you love the place. Play it cool. It’s the same when you like a girl. You don’t tell her. Same with buying a house. Keep your mouth shut.
2. Don’t bring your relatives to see the house after you’ve seen it.
That is a sure tip off to the home seller that you like the house and want to show it off to the family.
3. Do not argue or get emotional during negotiations.
Once emotion enters a room, logic leaves and you will rarely make a deal. In fact, the seller may kick you to the curb.
4. Do not reject counteroffers out of hand
Because it is often seen as disrespectful and it will create defensive posturing. Acknowledge the home seller’s price but use the methods above to suggest your terms are reasonable under the circumstances and in the seller’s interest to accept. Point out the advantages to the seller if you offer cash and a quick sale, for example.
5. Do not criticize a home.
Folks are emotionally attached to their homes. Compliment the owner on their home where you can but don’t gush. You want to build a rapport so the home seller will be willing to negotiate with you instead of calling you a jerk he’d never sell to for any price. Pros say there are 3 needs in any negotiation: control, inclusion and respect. Make sure you do not take these from the seller.
6. Do not offer against the asking price.
Get the home seller to offer another asking price. So instead of offering 10% below asking, say “can you do better than the asking price?” Now you have a new lower asking price to which to make your offer.
What negotiation tips do you have to share? Are any of them particularly effective?