Four steps to conveying an offer lower than the asking price…

The principle of asking for more…

When you have a buyer who has offered on a property and the offer is less than the asking price follow these 4 steps

1. Convey the offer over the phone about 30 minutes before you see the vendors in person. If you are working with an interstate vendor convey the offer and shut up and wait for the vendor to speak first.
2. When you see the vendor run through all the conditions of the offer and then show them the offered price in writing and then shut up. Give the vendors plenty of time to think.
3. Assuming the conditions are good and the settlement date is okay then the only thing holding the vendor back from getting happily moved is the price.
   Lets say you have an offer of $700,000 on an asking price of $750,000 and then vendors say they will accept $730,000, then explain the four things that can happen by counter signing this proposal.
   a.) The buyer may withdraw their offer to purchase.
   b.) The buyer may be able to afford to pay somewhere in between $700,000 and $730,000.
   c.) The price the buyers have offered is their best price.
   d.) The buyer may agree to pay $730,000. You then explain to the vendor that if the buyers do come up to $730,000 that they have sold their house.

4. Then apply the principle of asking for more. Suggest to the vendor that you counter sign the agreement at $735,000.

By applying the principle of asking for more, it shows the vendors that you are really acting in their best interest.

Most salespeople negotiate by trying to get the vendors to counter sign just below half-way and at this stage the vendor can feel you are working for the buyer. This is how you are different…

Then say to the vendors: ‘So now is not decision time. When I come back to you with what I believe is the buyers best price then its decision time.’

Then when you come back with the buyers highest price you will notice a difference with the vendor who is now more open to accepting a reasonable proposal.

I have used this many time with great results.

Apply the principle of asking for more and you will have more tough negotiations come together and therefore make more sales.