General Money || Personal Finance || Stock Markets || Real Estate ||
Negotiate with DATA, not Opinion or Assumptions:
I am not suggesting that price negotiations shouldn’t occur. Of course they should. The challenge is to identify a very good price that is justified by market comparable parameters, but yet the offer is submitted in such a fashion that it does not insult the seller. The use of current market data to prepare and then support your offer is by far the most effective tool in a price negotiation. Showing a seller market data is way more persuasive than simply saying “I just feel like you are over-priced”. Another reason market data helps is because many real estate agents barely know how to perform a competent market analysis (CMA). They don’t really KNOW what the property is worth. If the Buyer-agent produces data that supports their client’s offer, many times the seller’s agent will be swayed by the data and will blindly recommend that their seller-client accept the offer.
The mirror image of this (Seller prices high to allow room to negotiate) has the same effect on insulting the Buyer and forcing a lost negotiation. This strategy works something like what we call scope discounting – where the seller clearly knows that the buyer will bargain, hence he would structure a deal a little over market rate giving clear scope for buyer to negotiate & make it look amicably satisfying. It always pays you rich dividend, when you structure your deal based on data & definitely not on opinions or blind assumptions!
Use These Tools for Negotiating Effectively
– Article by Suman Adithya Rao (SEBI Certified Research Analyst, Management Graduate in Entrepreneurship & Small Business Management)
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