What happens when a negotiation stale mates? What happens when there is no room for further discussion or room to negotiate?
Recently I entered a negotiation on the sale of my house. An aggressive buyer came in and wanted the house. From the real estate agents, we found out that the family was really in love with the house and wanted it. Also, we found out that the buyer considered himself a hard negotiator and he would get us to take his price.
Negotiating began and we went back and forth through the real estate agents several times. We were within 3.5% of completing the sale. The buyer threw the gauntlet. He decided that if I did not take his final offer he would walk.
We let him walk. My wife and I decided to leave the house on the market and see if we could get our price.
We felt bad for the family. They really wanted the house. The buyer had boxed himself in with no wiggle room.
We sold the house soon after to a family that also really liked and wanted the house. We ended up +% over our asking price.
I always try and remember that in negotiating the sale, try and have wiggle room but also try and figure out whom you are negotiating with and what are they willing to do. This is easy to say and hard to do. In this case and in many other sales negotiations all I had to do was know my wants and desires and listen for the other side. Without listening I may have taken the deal! Sure, glad I didn’t.
Here are 7 Techniques to think about for negotiating:
- Price is not everything.
- Develop a walk-away number.
- Build several strategic concessions.
- Try and know whom you are negotiating with.
- Do homework before entering the negotiation.
- Begin by making the first offer.
- Remember it's OK to walk away.