Get your vendor to invest “emotional time”
Posted by markharrison on September 3, 2006
A key strategy you can use when negotiation to buy a property is getting the vendor to invest what I call “emotional time.”
This plays up to human nature, the more effort a vendor has put into thinking about selling to you, and working with your offers, the more inclined that vendor will be to see the deal go through (assuming that there are no better offers on the table today). The reason for this is that the vendor, having gone through the stress of negotiating with you, wants to avoid you dropping out, and having to go through the stress all over again with the next potential purchaser. As such, you want to make sure that the vendor spends a long period of time haggling with you, not just back and forth in the space of 15 minutes.
This means that, whenever you put a figure to a vendor or an estate agent, you should then keep quiet, and see what the response is. The normal tendancy is to rush on, and blurt out something to justify your figure, but the best thing is to wait and see.
Normally, the vendor will come back with a counter-offer. Suppose that the asking price was £200,000, and you offered £160,000. The vendor may immediately come back and change the asking price to £190,000.
On the other hand, when the vendor puts a counter-offer in to you, you should never respond immediately except to express surprise at how high the price being asked is, and to say that you need more time.
The reasons you give for asking for more time are varied, and are there to sound plausible. The REAL reason you ask for more time is to get the vendor to invest their emotional time. So, say that the counter-offer is not something you can agree to, but give a reason as to why you need time to thing…
… and some plausible reasons coming up in a future post!