Price Negotiation Strategies with Buyers

Buyer’s in the market today have been conditioned through intense spaced repetition to be very sensitive to price. It is important to be prepared to address this issue. It is important to determine how the buyer likes to negotiate in advance of actually negotiating with them. The following should be considered.

1. Identify why the buyer is unwilling to negotiate on specific point, especially if it is price. Ask: “Why”.
2. Show the market has most likely bottomed-out.
   1. Show the buyer what properties were listed for during the height of the market.
   2. Show the buyer what they are closing for now.
   3. Divide the listing dollar amount by the closing dollar amount, and show it is around 20%.
   4. Relate the 20% to what the experts anticipated the drop in value would be.
   5. Ask the buyer if he would like to buy at 2004 prices? And, show them the market is similar to what they could have purchased property for in 2004.
3. If the buyer is purchasing another home, show them they can make it up on the new purchase.
4. Change to focus from price to what the buyer’s needs are.
5. Identify what they liked about the home itself.
6. Revisit the benefits of the neighborhood.
7. Discuss the impact of current events.
8. Show what the impact of interest rate increases will be if they are financing.
9. Return to other listed properties and show the buyer other properties that aren’t as desirable.
10. Ask the buyer if he would be willing to meet in the middle.
11. Show the buyer that the inventory selection is the best ever.
12. Use Ben Franklin Close, and do not help the buyer with the disadvantages to purchasing.
13. Show the buyer the benefits if they go ahead with the purchase.
14. Show the buyer the consequences if they don’t go ahead.