Imagine you have a home for sale. You have done your research. You know what it is worth. You advertise it at $350,000.
Now, imagine a man comes along and looks at the home. He goes home and sends an email to you. He tells you that he just loves your home. He knows it is the home for him. He can just imagine living there and looking out the window. He offers you $345,000 and says that he has the down payment and can get a loan for the balance..
What would you do? Would you eat $5000?
Let me put it another way. You can’t eat $5000, but $5000 would buy a lot of groceries. If you sell it for less, that is $5000 you do not have in your grocery budget.
That is a month’s salary for a $60,000/year wage earner.
What is your negotiating position? What would you do?
Would you risk losing your sale?
Key to this is that the man loves the home. He can see himself living there. He does not say that $345,000 is all that he can afford.
You are in the stronger negotiating position. Did you realize that?
We closed on a real estate transaction that went similarly. We got full price. The buyer’s agents sent us a letter and requested the concession. I will be using the letter and the entire process as part of a learning experience for the negotiation course.
If you want something badly enough, be willing to pay for it. If you want to negotiate, be willing to walk away.
If the seller knows that you want it badly enough, you have already lost the negotiation – in the very first step.