Inexpensive Houses - A Negotiating Technique
There is a simple technique that anyone can use to get inexpensive houses . In fact, it is the oldest trick in the book: Make a low offer. The problem is that most people think a low offer is the end of the negotiations. In other words they think the seller says yes or no and that’s that. But the point isn’t to have your first offer accepted.
The purpose of a low offer is to alter the expectations of the seller. For example, if he is asking $194,000 for his house and you offer $158,000, he will reject you offer. That’s okay, because he will also wonder if he has priced the home too high. He may counter-offer at $180,000, which may have been your target price in the first place. If he just rejects the offer, wait a while and write another a little bit higher.