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Making Successful Counter-Offers
Has this every happened to you?
As much as you tried to get the seller
to agree to an alternate version of their price, terms or
conditions, another buyer comes in and the deal closes with
them.
Its a common occurrence, but what is it
that leads to this result? You probably also felt that there
was likely something that you could have done differently
in the dealing.
It all comes down to what happens when
people negotiate as they work their way through the stages
of the process involved in bargaining. There are some standard
conditions in any negotiating that goes on between two parties.
Let's look closer at the environment of
a negotiation:
- First, the seller does not have
to accept anything other than what they have stated as
their requirement when they make overtures to sell. Anything
other than a blanket acceptance of the seller's conditions
is actually a counter-offer with no obligations on the
part of the seller to accept.
- If there are other offers forthcoming
during the negotiation, there is also no obligation for
the seller to restrict themselves to your presentation.
- A counter-offer, regardless of
how many of the other terms that you have agreed with,
any changes to the original conditions presented by the
seller constitute a new offer.
So where does that leave you when a new
buyer comes calling, and even presents another counter-offer?
The seller may well take the deal because the "package" of
the other counter-offer was more favourable- the price was
higher, the earnest money was better, or maybe the seller
just got tired of the back-and-forthing in your dealings
with them.
To improve your lot during bargaining,
consider these points:
- Remember what you want to accomplish.
Focus on the desired result, not the dickering process.
- Keep firmly planted on the important
issues - be prepared to give up on things that are not
important to the final result. If price is important, what
will you give up to get the property at the price you want?
As well, what are you willing to give extra to get it?
- Make sure that your agent thoroughly
understands your position. It is only with you clearly
communicating how far you are willing to go that your agent
can advise as relative to the market conditions known to
them.
- Also communicate exactly what your agent
is able to say, and what you want held in reserve to strengthen
or shore up your negotiating position at a later point.
- If you are interested in the property,
make sure that the seller understands your seriousness.
Often a seller will prefer to deal with a serious buyer
who has some extra terms than a not-so-serious buyer prospect
who, even though they indicate they are willing to pay
the price, just never get to the last step.
In the final analysis, the realm
of the counter-offer is a position of some risk for both
the seller and the buyer. You may immediately find out
that there is no interest in a counter-offer. By keeping
finely honed to the real processes behind the bargaining
game, you will know when to ask for less - or when to hold
- to achieve your goal.
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