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Thursday, August 25, 2011

Lessons from a master negotiator

 

Ward Lowe | Consumer columnist

Jul. 15, 2011
Are you a good negotiator? My cousin thinks he is and put an offer on a house last week. The house was listed for $355,000, and he offered $315,000. I asked why his offer was so low, and he said, "That's how you negotiate."

Don't make up a number

I asked if there was something wrong with the property or if it was overpriced. He said, "No, it doesn't need much work, and my REALTOR® determined it was priced in line with the neighborhood. But you have to start low if you're ever going to get a good price."

I hope you have time

I called him today to see if he'd gotten a response from the seller, and he said, "Yeah, the guy came down to $350,000 and said it was his final offer. I'm not paying that."
Did I mention that my cousin's been looking for a new house for almost two years?

Be reasonable

It's a good idea to ask for a price reduction when buying a house, but your offer should have some basis in the reality of your real estate market—unless you enjoy wasting time with fruitless negotiations.

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