Question about Negotiating Deals

[Brandy Johnson]

I have been negotiating with a seller, he wants a day to think about the deal. Do I wait longer since he needed time? My offer was 5k less than his asking, he wanted to meet in the middle; Increased my offer by 1500 and he went to shake my hand and then said no he needs to think for a day but would most likely accept (his words) is this a good sign? The house has been listed for awhile but there is an emotional attachment. Any thoughts or comments are welcome.

[Aaron Mazzrillo]

So you've increased your offer by $15,000 and he dropped his asking price by $2,500? You have a lot more to learn about negotiation than worrying if you should wait a day to contact the seller or not.

When you make that big of a move, the other side knows you probably can move some more. You can't go $15,000, then $1,500. He is out-negotiating you and you are on the verge of appearing needy. What you should have done was made your initial offer and when he countered you, you then say that you always put your best offer first because you don't like to play games and get into a bidding war. Then, if you have room, up your offer by just a little just as he has reduced his. In reality, you have much less room than he does. If the property is free and clear, he can go all the way down to zero. You on the other hand have expenses and margins to deal with.