Experience Making An Offer!

[John M.]

Was wondering if anyone had some informative, or even humorous, stories when it comes to making an initial offer or sales negotiations of a house?

I am looking to place an offer of $200K on a multifamily house listed at $270K.  I understand price anchoring as a sales tactic but I am worried about the seller's reaction.  I did my homework and I believe this is a good starting point to begin negotiations.  

[Thomas S.]

I prefer to low ball and test the seller to see if they are negotiable. I never pay more than I think a property is worth to me so I could care less what a sellers reaction is to my offer.

I expect my offer to be countered and until it is there is absolutely no way to test the sellers position. I do not give best and last as that gives the seller a no win position. Offer lower that you will pay and give the seller the feeling they have won something by moving you up to that point. 

If they are insulted by your offer or simply do not counter then the reality is they either do not wish to negotiate or the spread was too great, either way I walk away knowing there was no deal to be had.