The beginning of negotiations is usually the end of many months of hard work for the buyer or seller. The work ahead requires skill in order to maintain a strong position.
Sellers can lose their advantage if they do not counter an offer that a buyer has made. Even if the opening offer is beneath what the seller feels is reasonable, it is advisable for the seller to respond with a slight reduction from the asking price. The most important component in negotiating is good communication.
The best way to handle a low offer is to counter it with definite terms that are favorable to the seller. A counter offer has two advantages: 1) it keeps the buyer interested, and 2) it moves the negotiation forward and gives the buyer the opportunity to submit another offer that the seller is more likely to prefer.
The J Team
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I always tell my sellers that even if it is a low offer, this is a starting point and there is an actual buyer at the table. I also tell them to think of it in terms of them being the buyer, would they want to start out with a full price offer? Thanks for the post.
Jason - very well stated. From the buyers perspective, I would suggest making an offer and if a counter is received, possibly submit a highest and best offer. This could save both parties time.
So true. And these days, you want to try to keep the negotiations open...to hopefully end with a WIN-WIN situation!
Great post Jason - It's important to keep the offer on the negotiation table and not reject it outright...
very interesting post. Thanks