Its funny how sometimes the most simple advice can be most effective. In learning how to become an effective negotiator I've stumbled upon one principle that could very well be the only one I need...
That principle is to always ask "Why?"
"Why?" is often the beggest single weapon in a negotiation but it seems most people are afraid to ask. Perhaps there is a fear that to know the answer will ruin the deal entirely. Isn't it better to know up front where you stand than to wait two weeks to find out?
Lets say a buyer insists on a price lower than fair market value, even though your seller is already priced for what recent comparables have sold. Instead of wasting time arguing, just ask, "Why such a low price?"
The answer may be one that you don't like. Perhaps the buyer has a sister who bought a house in the same neighborhood for that price two years ago and doesn't want to be "bettered" by her sibling. This would be a tough objection to overcome indeed.
Maybe there are some terms that could be tinkered with to justify a lower price for your sellers. Maybe interest rates are lower than two years ago, so pointing that out could help the buyer get that sense of "bettering" her sister. Bottom line, you wouldn't even have the wherewithal to consider these potential workable options unless you asked, "Why?"
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