How many volleys?
I was talking to a listing agent recently about an accepted Offer to Purchase. My client made an Offer in competition that was well below full price. Their Offer was accepted and I was fishing for information about why. I believe they paid just a few thousand below what the market should bear for the house.
The agent said something like this: “Your Offer was almost as good as this other buyer who had been inching up, over and over. The sellers were sick of them.”
We started talking about where we thought the tipping point was, when the negotiation was about ego and no longer about buying and selling. I thought egos get into it after three rounds. This agent said two.
Attitude is part of house negotiation. It shouldn’t be, but it is. Owners tend to have an inflated idea of the value of their house and the buyers have a deflated one. Sellers do get insulted, so I try to figure the lowest start price that won't trip the personal buttons. Then I allow one more volley in my negotiation plan. At worst, that makes for three volleys.
Have you been insulted? Have you seen a seller be insulted? The way I negotiate, I have not had sellers insulted, even if my client's Offers are low. I have been able to keep it all business. But, obviously, sellers are really happy to dump a buyer who is too aggressive if another one comes along. Even if the next one offer a little less money. Win-win in my book!
So, how does a buyer get the lowest possible price? Certainly not by inching up, Offer by Offer. How many are too many in your opinion? When does it get personal?
