There are lots of strategies employed when negotiating a purchase be it a house, a car or at a garage sale!
It could be the old "this is it" strategy of advising the seller's agent that this is all you are going to pay. If a buyer plays the "this is it" card, there isn't much room to come back later.
It could be the "low ball and negotiate later" strategy. This is a flawed strategy because sometimes the seller will be so offended they will never sell to you regardless of price!
There is the old "box it and split" strategy where the buyer offers a certain price expecting the seller to split the difference and meet in the middle.
My recommendations are simple and are largely dependent on the buyer's needs, time line and resources.
- Determine, if possible, the seller's motivation and how long the house has been on the market.
- Offer a price that will not offend but get the conversation started.
- Expect the seller to give a little but not "give in" completely.
- Know what you are willing to pay if necessary.
- Be willing to walk away if necessary.
Key point: In real estate negotiations in Florida a counter offer kills the original offer. A counter offer is a new offer. When the buyer rejects the counter offer, the seller can not go back to the original offer, accept it and require the buyer to honor it.
Not all negotiations will be successful. Even if a man says he is willing to negotiate, such may not be the case. It has been said that “The man who says he is willing to meet you halfway is usually a poor judge of distance.” So don't expect anything until it is presented in writing!
Gary L. Waters PLLC, Florida licensed real estate agent, Century 21 Baytree Realty, Rockledge, Florida serving Florida's Space Coast including the cities and communities of Melbourne, Viera, Rockledge, Suntree, Merritt Island, Cocoa Beach and the surrounding region.