Common Mind Games When Negotiating a Home Price
Negotiating a home price is one of the few financial games in life wherein a win-win, win-lose, and lose-lose situation can occur. Both sides can be happy with the negotiated price, or one side can be tricked into making a disadvantageous deal, or both sides can end up walking away from the deal in anger and frustration.
These situations involves some serious mind games, and knowing them helps give you an edge if and when you are looking to cut down the initial price offered by negotiating a home price:
Positions of power
The first thing you need to do before you can even start mind games during negotiations is to identify who has the advantage. Check to see who is in a position of greater power. A seller is in one if homes are in high demand, sell quickly and are in no rush to sell. A buyer is in one if the local real estate market is weak, the seller is in a rush to dispose of the property or the said property has been on sale for quite some time now. Identify where you are in, and adjust your negotiations accordingly.
Blitzing
One of the most common mind games when negotiating a home price is to rush everything. Professionals skilled in the art of marketing and sales will take advantage of the uninformed to overload their brains with data, effectively forcing them to make bad decisions in the process. If you are being blitzed, slow down the discussion and take the time to ask questions to clarify any problems or misunderstandings.
Silencing
The complete opposite of blitzing, silencing involves bluntly refusing an offer and pressuring the other party into making a counter-offer that is often to their disadvantage. Those who are in a position of power will often make use of this direct approach to negotiating. If you find yourself being silenced in this manner, make sure to break the silence by resisting the temptation to feel uncomfortable and offering a strong but effective counter-offer.
Feigned reactions
While a poker face may be ideal when negotiating a home price, it can and will often put the other party in a defensive position. If they present an offer, make sure to react in such a way that looks like you are agreeing to what they have to offer. This makes them feel more at ease, and this feeling can be used to swing things in your favor later on in the negotiations.
Ego trips
If there is one last thing you must remember when negotiating a home price, it is not to let your ego take control of you. Your objective, as well as the objective of the seller, is to conduct a trade that benefits both sides. Concessions and agreements will be made when negotiating a home price, and professionals know this. Give ground if it is within reason and walk away if it is not.
These are the more basic mind games played by both buyer and seller when negotiating a home price, but still play an essential role in the process. Keep them in mind, and you will gain an edge in the negotiations while protecting yourself from being affected by them.
About the Author:
Come over and inspect good real estates in Apache Junction AZ Real Estate and Surprise Real Estate with Pool. You might also want to check out property in New Houses in Tempe.