Negotiating Tactics?
Hi, I just put in an offer on my second multi-family property in the Boston area and I have a negotiating question.
The sellers countered my offer by splitting the difference. The property is listed at $699K, my offer was for $630K, they countered with $665K. The highest I want to go is $640K.
I'm thinking of telling them that I'm standing firm on my intial offer and if they don't budge, then I'm pulling out of the deal entirely, merely as a tactic.
I would then let it sit for a week or so, hoping they'd buckle first.
I'm wondering if this is a foolish strategy? For background, I'm the only prospective buyer and the property has been on the market for almost five months. I feel the ball is in my court. So I'm hoping that by not countering and stopping negotiations for a week or two, they'll drop even more.
Any thoughts?
First, your initial might have been too much. Second, I would not wait a week. Third, I'd put in another offer $1000 or so above your last offer. I once saw a deal go back and forth 30 times before it was done. Finally, you said you didn't want to pay more than $640? or so, then DON'T! Stick to it.
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