Sharing Daily Discoveries About Personal Finance And Business Topics

Assuming What The Other Person Will Pay or Settle For

I heard some pleasant news today as I was helping a person before in tying to find a place to live that made sense value wise for their budget. So initially there was this place that was asking for almost $215,000. Funny thing was I was doing my research ahead of time such as how long that place has been on the market for. At first I suggested that maybe $200,000 would be good which they tried. Of course it resulted in a lot of back and fourth. Eventually they agreed to about $206,000.

After further due diligence on the place there appeared to be some issues and so this justified a further price drop. I personally suggested about $195,000 based on what I read about place. Interestingly enough the person I was helping was telling me they may as well forget it as there is no way they would go for that price. Sure enough the other side was saying verbally they would only settle for something in the $200,000 range.

So of course at first the person was telling me in a “told you so” kind of way. But, I was adamant in saying they should try at that price while being firm and prepared to simply walk away if it is not accepted. Sure enough, the other side ended up accepting the deal for the lower price. So imagine that as they could of lost over $10,000 savings by simply not trying and assuming that the other side wouldn’t settle.

Like in this case I am no real estate agent, but generally in these examples you should at least place whatever your final offer is on the table rather than assuming they will auto reject it. This is true for so many things too such as negotiating prices at say a flea market. If you are interested in getting something but have as specific price in mind you should simply present your offer to make sure if they will reject it or not. You never know how much that person really wants to get rid of the item.




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