The key to effective negotiation is your ability to convey interest while at the same time being willing to walk away. It is important to establish your interest, else the seller think you are only a tire kicker out to waste their time.
Once he or she knows you are interested, their job becomes one of getting you to make an offer. Therein begins the delicate dance of negotiation.
Here are some tips, many of which I learned as an arbitrator and settling lawsuits.
Remember, every price is an “asking price”, not the price the seller is willing to accept.
1. Do Your Homework.
In order to know whether you are getting a good deal, you have to know the current marketplace. This includes the inventory and the economic reality of the local market. You also need to know the seller’s situation and motivation.
Don’t be afraid to ask questions. Continue reading this post