February 7, 2006

When To Walk Away From the Negotiating Table

=============================================================
When To Walk Away From the Negotiating Table- by Jeff Hoffman

© Jeff Hoffman- All Rights reserved

=============================================================

The art of negotiating to a successful outcome is to keep your emotions out of negotiation. Doing so will dramatically increase your opportunity to arrive at a “win-win” outcome that gets the deal closed. As Kenny Rogers once sang “You’ve got to know when to hold em and know when to fold em…”

There are two and only two reasons to “fold em” and walk away from the negotiation table, here they are:

1. You are truly fed up and will not budge another inch and see no way to make the deal come together. You’ve counter offered, negotiated concessions, and tried to accommodate a number of buyer requests but can’t get a point where you get the thing or things you really truly need out of the sale to make it a good deal for you. If you’ve truly gone the “extra mile” in an attempt to satisfy the buyer’s needs and you still can’t get them to give you what you need, then throw in the towel and move on to other offers.

2. For effect. You really are willing to give some more, but you want the buyer to think you’ve made your last, best offer. As a tactic, walking away can get negotiations started again, and sometimes get you your price. Or, it can cost you the deal. There are no guarantees when negotiating real estate so be prepared for the outcome before you play your “bluff” hand. The effectiveness of this tactic depends greatly on;

• How good a poker player you are
• How motivated you are to sell
• How motivated the buyer is to buy
• How good your real estate agent is at playing the part and conveying the bluff

A Final Big Tip

Here’s one other tip that will make or save you money when you find yourself entering the negotiation; if you’re a buyer know what you want BEFORE you make your offer, and if you’re a seller, know what you need BEFORE the offer is tendered to you.

Sounds simple enough right? Few buyers and few sellers actually do this and it costs them valuable time and thousands of dollars when they find themselves in a negotiation. Timing is everything in a negotiation. Responding quickly to an offer or counter offer is a huge advantage because as I said in the opening, people tend to negotiate emotionally, and when emotions are high you can often use that emotion to your advantage if you’re properly prepared. As a seller, your chance to strike the highest price is right after the buyer tenders an offer because they’re excited and emotionally caught up in the moment, wait too long to respond and you’re giving them time to let logic creep in, eroding that valuable emotion, often costing you thousands of dollars. As a buyer, you can get a seller to concede price much more effectively when you respond quickly to their counter offer because they too are excited at the possibility of being done with the uncomfortable process of selling a home. Your quick response shows the seller you know what you want, and you don’t have to think twice about it. If you don’t get it you’re ready to move on to the next house, which is a very intimidating message to convey to the seller.

Decide early on what you want and what you need out of your negotiation. Doing so will all but eliminate the possibility of having to walk away from the negotiating table empty handed.

~~
Jeff Hoffman is the President of Hoffman Realty Group, Inc. and has assisted thousands of sellers and buyers during his real estate career. He is the creator of a powerful home selling system designed for the home seller not the real estate agent. To learn more about this amazing program visit Smart Seller Listing Home Marketing System

-=-=-==-=-=-=-==-=-=-=-=-=-=-=-=-=-=-=-

The Ultimate Guide to Worry-Free Home Selling

Want the inside secrets of selling your house or condo quickly? And for top dollar? Jeff Hoffman knows how to make that happen. For over 17 years Sacramento Valley home sellers have relied upon his tips for solid advice on all aspects of selling a home. Now '18 Notorious Home Selling Problems & How I Solved Them' gives you practical, step-by-step information, how to avoid the traps and pitfalls that so many home sellers routinely face when selling their homes. Check it out here.

-=-=-==-=-=-=-==-=-=-=-=-=-=-=-=-=-=-=-