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Techniques Used in Negotiating

posted by Stephen Katz @ 10:53 AM
Thursday, April 25, 2013

Negotiating can be enjoyable and profitable if you know what you are doing. There are certain techniques that are easy to learn and use. They are very beneficial when used properly. Here are a few types:

The Higher Authority
This is the art of using something that has more power or authority than you as the reason for taking and holding a certain stand in negotiations. An example would be “your boss says” or “it’s company policy”. To get around this, just ask to speak to the boss or let me see the policy in writing, or just hold your position.

The art of getting more after the buying or selling decision has been made is called Nibbling. An example would be a car salesmen adding on accessories after you have agreed to purchase the car. Don’t do this technique as it may make the other person feel cheap.

Good Guy Bad Guy
In this technique you make the other person feel that you are on their side, you are helping them negotiate with your higher authority. An example would be “let me talk to my boss and see what I can do for you”.

The First Offer
Never jump at or accept the other person’s first offer. You will never know how close you could have come or how far the other person would have gone.

The Trade off Technique
This is a defense technique against some one that is trying to get the most out of you. You could come back with “if I do that for you, what will you do for me”. This does 3 things. It stops the other person from coming back at you for more, it may get you something and it lowers the other person’s expectations.

Room for Improvement
You should always take the position in negotiating that there is room for improvement. Use phrases like “you have to do better than that” or “is that the best you can do”. Always ask for improvements.

Power of the Printed Word
Most people will believe anything that is in writing. Always have any clauses or any terms that you want already typed into your contracts.

The Big Pot Tactic

In this strategy you ask for everything. This tactic establishes a climate where the other person can also win because by asking for everything you have something that you can give back to the other person.

Withdrawing the Offer
Don’t be afraid to take your offer off the table. This will force the other person to show their hand or to give in.

Stephen Katz

(770) 309-0939 (direct) or (866) 742-8400 -- For the past 18 years, Stephen Katz has built a successful business almost entirely on referrals. As your mortgage consultant throughout the home loan process, Stephen will explain the pros and cons of all available mortgage programs and help you choose the financing option that is best suited to your needs. Throughout the loan process, he will keep you informed and will respond quickly to your requests with answers and solutions. Consistently a top producer, Stephen is a Mortgage Bankers Association "Diamond" Award winner, a Georgia Mortgage "Top Gun" and has closed almost half a billion dollars in loans. Put his knowledge and experience to work for you!

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