The Best Negotiating Tactic is Often to Just Say ‘No’

Filed in Business Management, Sales & Marketing by on February 1, 2016 0 Comments

It is always better to negotiate the sales price of your home from a position of offense, and one of the best strategies is often to hold firm on your asking price and say “no” to any counter offers.

This is among the tactics that Mar’Sue Haffner, a national sales trainer with the firm Sales Solve Everything LLC based in Plano, Texas, told builders during a Jan. 20 educational seminar at the International Builders’ Show in Las Vegas.

“A home is the biggest ticket item a customer will every buy and they believe they are supposed to negotiate,” Haffner said.

“Their first offer is a test,” she added. “Always flinch, even if they present a great deal” because you want the buyer to believe you would be making a major concession to consider or accept their counter offer.

To further help protect and maximize profits, builders should not be afraid to say no to a counter offer. Hold firm by reselling the value of the property and showing why it is a good deal at your initial offering price.

If necessary, Haffner said builders should be willing to walk away from a deal if they don’t get the price they want. However, they should be gracious, thank the potential buyer, shake their hands and acknowledge their negotiating ability. Taking these steps will elicit good will and could actually bring the buyer back, she said.

However, if you are unwilling to walk away from a deal and feel it is necessary to counter back with your buyer, Haffner provided the following tips to get more counters accepted:

  • Use the LIFO (last in, first out) method. “The last thing the buyer asked for at the end of negotiations is the first thing they can live without,” she said.
  • Tie a string. If you give anything away over and above the planned incentive, get something in return. For example, tell your buyer, “I will be willing to do that. However, you will need to use my lender.”
  • Be numbers wise. Numbers send different messages in different cultures. For example, many people associate 666 with the devil. Conversely, the number 8 is considered very lucky in China, so pricing a home ending in 888 could be a wise move if selling to a Chinese buyer.
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