Negotiating - Posted by Reif


#1

Posted by MarkHOUTX on January 13, 1999 at 22:12:25:

Buyer: How much is the down payment?
You: “The down payment is reasonable and negotiable”. "How much do you HAVE to put down?"
Buyer names a figure, if you like it;
You say: “I think I can work with that.” Don’t forget to pause a second before you give your answer - to make it seem like you had to think about it a little and weigh the facts. And try not to smile too much if you are negotiating face to face.
If you don’t like the figure;
You say: “I don’t think I can work with that, is that the least you can come up with; can you borrow from a friend or a relative, etc.”


#2

Negotiating - Posted by Reif

Posted by Reif on January 13, 1999 at 21:30:33:

Got a few more calls on my condo today, so I’d figured I try a new strategy. Instead of just saying “Open House on Saturday,” I decided to prescreen a little so I didn’t waste their time (I’ll be there anyway).

I’m having trouble with the not naming a number first and answering a question with a question things.

I want to negotiate, but I don’t want to lose prospects by sounding like a jerk, either.

For example, I said in my ad, “Low Down,” naturally prompting the question “How much?”

I’d love to get 10K, hope to get 7K and won’t take less than five (I want 100K for the condo).

I respond with “How much do you have?” The first person said five thousand. So I told her, that may be acceptable, depending on other offers.

The second one said, “Well, I need to know how much you want before I drive up to see the place.”

I guess here I could say, “Well I could save you the drive if you tell me what you have,” but I think now I’m starting to sound snotty to someone who may not even be a prospect. I guess one can take a harder line depending on the number of prospects one has. Plus, what if they say four and they really have six? If I tell them, “Sorry, I’ll need more than that,” I may have lost a buyer that I didn’t have to.

On the other hand, I hate to say 10 and scare away someone that has seven, or say five and not get that 2 grand from the same person.

Any thoughts?

Thanks,

Reif


#3

Re: Negotiating - Posted by JPiper

Posted by JPiper on January 14, 1999 at 01:46:37:

I handle it by saying something like this:

I don?t have a specific down payment, but rather a range of down payment. In this case the down payment range is $5K-$10K, depending on your credit, your job, income and other factors of that type. How much do you have to work with??

Followed by questions concerning credit, job, income, etc. I don?t ever name a down payment specifically until I know how much they have, and until I have seen an application and a credit report.

JPiper


#4

Re: Negotiating - Posted by Laure

Posted by Laure on January 13, 1999 at 22:35:40:

I set the down payment at a lower amount. Then, I jack the interest rate. I let them buy down the interest rate with a larger down payment. So, it’s win/ win. On the last deal I did, 49k sale, I asked 3k down with 12% interest. The buyers asked me what I could do for them if they put down 5k. I dropped the interest rate for them to 10.5%… I win, because they are still better to get a bank loan as soon as they can qualify, and they see that easily. Plus I get a good return on my money, and I got a higher down payment. I also got them to agree to a 2 year balloon !!

Laure :slight_smile:


#5

Re: Negotiating - Posted by Stacy (AZ)

Posted by Stacy (AZ) on January 13, 1999 at 21:40:34:

Welcome to the art. I learn every time I negotiate.

In your case, I would say, “Well, I’ve had an interested party offer $5000 down, but I was hoping for something higher. I’m not sure they would qualify, so it’s hard to say. How much could you offer?”

Have fun…you’re learning a terrific lesson, as you will every time you negotiate. It’s really the core of REI, as far as I’m concerned. Don’t expect to be perfect.

Good Luck-

Stacy