Negotitiating a deal

There is of course, the option of doing nothing and not stating a number at all, since it's so far from where the ask is. Just wait and see what the next 2 years bring.

If I'm in the market and really interested in a property, I would say something like the following to the owner:

"Based on the following reasons, I would be interested if the price is around $(-5% from what I'm willing to pay). [list the reasons why I think my number is fair for the current market]"

I would leave my contact info with her and if she calls me back, I will likely overpay by +5% to close the deal. If she doesn't call me back, then one of us is delusional; time will tell which one is.

When a dog gives up the alpha dog position, it shows it's belly and lays down. Why go after a yelpy chihuahua? I like it when banks get involved, Talk about dogs that roll over.

Except that I am unlikely to get first dibs when the banks take over.

Argh, noticed typo in title.

You might want to take a read thru of this old thread that's pretty rich with info. It was from the days before 90% of the chatter was un-funny prattle between a half dozen posters who know how to kill a thread on just about any topic with nonsense.

http://streeteasy.com/nyc/talk/discussion/8657-negotiating-better-fundamentals-of-effective-negotiating

kyle...thanks for pointing us to a great thread. Very informative and thought-provoking.

nyc10023:
I have never been successful when trying this & I'm not sure why. I suppose there's a variety of psychological reactions occurring the seller's mind. Maybe by the time we come around, the seller is very burnt out, confused & distrustful. But, what the hell, give it a try, just really do your homework & anticipate seller's responses. One thing I would not do is disclose my bottom line. Good luck!

Yeah, I remember that thread. Time is on my side. So far, I've gotten the seller (no broker) to disclose her number and other background info. I haven't said a thing. What I'm thinking is that we're so far apart on the numbers, whether it's better for me to not even put in a bid, and wait to see how the situation develops.

I agree with you. Naming a figure at this point would be a classic case of negotiating against yourself. If you're at all correct about your assessment of price and value, the price will have to come down at some point unless they don't want to sell in the first place.

Also, given that they have taken the property off the market it would seem unlikely that they are in imminent danger from a lender.

If I were the seller, and received a reply like the one that I suggested above, I would not write if off as a simple lowball attempt. The reason is, the potential buyer clearly did the homework and sought me out. If my asking drop down to a closer range for whatever reason, especially when between broker contracts, I would contact that potential buyer... --bottom line, that potential buyer gets first dibs.

Of course not all sellers and buyers think like me, nor do they necessarily think like the others on the board or anywhere else. I'm just giving an opinion on how I would approach it.

also, if I were the seller, I just might be reading this too...

Which is why I've been careful, Sunday. I have not said anything that I wouldn't say.

ok, call me when you're ready...

nyc10023: this is purely anecdotal, but take it for whatever it's worth. I have myself had the ezperience and have recently heard from several friends/acquaintances about cases where they made a lowball bid on an overpriced property as much as 18 months or 2 years ago and were told (take your pick) that the offer was insulting, that the bidder was an ignoramus, that the seller would accept an offer at that range over his or her dead body, etc. Suddenly, out of the blue, we're getting calls asking if we are still in the market and would we like to come see the place again. On that theory, you might want to follow Sunday's prescription and then just let it sit and see what develops . . . Also, I assume you've done your ACRIS research and know if there's a reset coming up or something that might affect the seller's needs/timings.

experience and timing, not ezperience and timings. Ugh!

:) Yes, I've done my research.

Wow a bid with no burn date? So after 2 yrs of crappy re mkt, the seller hits a 2yr old bid and the 'bidders' don't tell the shocked idiot, sorry that a good bid back then. Herez another 20% off, how about you curse me out now but get back to me in 30 days instead of 30 months.

It's like sending my 7Yo to buy puppies with my platinum card. I wonder how many puppies I wind up with?

Nyc10023, what are you doing? Is that refi burning a whole in your jeggings? :) patience, patience patience.... The market is coming towards you, the broader economy (i.e. Anyone with a job) is improving. Interest rates will rise quicker than the market anticipates IMHO, and the REAL nyc re downturn begins in earnest. The last 3 yrs was just the appetizer bf the appetizer, what's that fancy French name?

Jacques

Nothing, absolutely nothing. Just scoping out various things. I am certainly NOT paying $1k/ft. I didn't get money from the refi - hey if the banks want to lower my interest rate for nothing, shouldn't I grab it?

No you sell your home to a lemming, and rent and then 4 yrs later when lemming gets divorced and declares bk you buy for 1/3. :)

Love French names. It makes me feel like I'm cursing all the time.

""The last 3 yrs was just the appetizer bf the appetizer, what's that fancy French name?""

Ah, oui, zat would be un amuse bouche. :-)

The psychology of both buyers and sellers is an interesting topic. However, each situation is a little different. In your example, the seller previously listed the property for sale which I would take as a positive sign that they want to sell. But the seller likely has a firm price in mind and may have the financial resources to wait to sell until that price is reached. Although you can explain the reasons for your offer, it would likely not persuade the seller unless your offer is very close to what the seller wants. Sometimes what I have found in my own search is that I have difficulties valuing the property at as high a number as the seller. I can't always understand why I feel that way, but bridging that gap to what the seller wants is difficult for me to do.

AH,
LOL.

ali

Agree lobster. Seller wants too much, we want to pay market or a touch above. Often, it's very hard to find a meeting of the minds with such a seller.

Alanhart, you are quick!

w67thstreet
1 day ago
ignore this person
report abuse When a dog gives up the alpha dog position, it shows it's belly and lays down. Why go after a yelpy chihuahua? I like it when banks get involved, Talk about dogs that roll over.

Aren't you a mixed breed of a chihuahua and a rottweiler?