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+--- Thread: The art of the deal (/showthread.php?tid=9916)
The art of the deal - HAULN-SS - 03-29-2012
So I'm interested in getting some ideas for how to negotiate. Do you guys do it? Ive gotten some occasional deals in retail stores (like furniture, jewelry) just by asking if they will take a lower price, but Ive never really scored big, or negotiated hard.
Heres my current story:
I live in a neighborhood that never got finished. There are a pile of empty lots, and the builder hasn't been there for a while at all. the streets are there, water and sewer lines are there, curbs and sidewalks, etc, just no houses where there should be.
I do some digging around trying to get in contact with the original land owner of the while neighborhood, and find out from him "the bank owns it now." Five more phone calls later, I am talking to the president of the bank, who apparently did some weird thing..because it never got foreclosed on, it sounds like He personally holds the deeds to the land now, which consists of the no-house plots, plus some completely bare land.
He goes on a schpeel about how he isnt into developing land, and just wants to get rid of it, had a few people looking to buy acreage, etc etc. I inquire about the lot behind my house that I was hoping to buy and build a garage on. He says he'd sell individually, and when I asked how much, he throws out a full retail price. Mind you, this price was higher than the price on a lot diagonal from it that has been for sale over a year, at a lower price. So I about spit my water out, and said something about that was higher than I was thinking. He indicates he might be negotiable, knocks off 10% right there. I thanked him for his time and told him Id think on it.
I was planning on offering half of what he threw out there. Is it acceptable to just throw that out as your first offer? How do you say it without insulting the guy? There's no way I'm paying more than about 50-60% because I had some cash on hand, but not enough to buy it at full retail, nor would I even if I did have it. I also didnt want to actually spend my cash, I was hoping his bank would finance it. Is it acceptable to make the loan part of the negotiation, since, after all, his bank would make the interest? ANy thoughts? I'd love to hear some stories about you bargaining on stuff
Re: The art of the deal - CaptainHenreh - 03-29-2012
Walk into the bank, bust into the President's office, and take a wizz on his desk.
That way, first thing, you've shown your dominance. Then toss your offer into the pisspuddle and say "take it...or leave it."
Make sure your dick is hanging out for the duration, right at his eye level, so he knows you mean business.
Re: The art of the deal - .RJ - 03-29-2012
Its very simple -
a) know what you want to pay, or what its worth - go in prepared
2) be able to close the deal right now - cash in hand is awesome for car/motorcycle sales
iii) be ready to walk away if you dont like the price or terms
If you are compromised on any of those things you have very little leverage on the deal.
Re: The art of the deal - HAULN-SS - 03-29-2012
CaptainHenreh Wrote:Walk into the bank, bust into the President's office, and take a wizz on his desk.
That way, first thing, you've shown your dominance. Then toss your offer into the pisspuddle and say "take it...or leave it."
Make sure your dick is hanging out for the duration, right at his eye level, so he knows you mean business.
I'll only do this if you go first on something youre trying to buy so I can see that it works
Re: The art of the deal - Evan - 03-29-2012
I really hate the "ill think on it"
it pretty much says "im too much of a pussy to negotiate properly"
he has (had) zero leverage in this deal so you have to take full advantage.
you should never show your cards like you did- why you want the land, what you are doing with it etc, because that establishes demand and gives him leverage. he knows thats the only lot that you can buy thats directly connected to your property.
you should check zoning laws and neighborhood bylaws and such though, it might not be legal to build a non residence on that plot. because who really wants to live next to a garage.
i think walking in with a 50% offer and ready to move up to 60% isnt unreasonable given market conditions
Re: The art of the deal - HAULN-SS - 03-29-2012
Evan Wrote:I really hate the "ill think on it"
it pretty much says "im too much of a pussy to negotiate properly"
he has (had) zero leverage in this deal so you have to take full advantage.
you should never show your cards like you did- why you want the land, what you are doing with it etc, because that establishes demand and gives him leverage. he knows thats the only lot that you can buy thats directly connected to your property.
you should check zoning laws and neighborhood bylaws and such though, it might not be legal to build a non residence on that plot. because who really wants to live next to a garage.
i think walking in with a 50% offer and ready to move up to 60% isnt unreasonable given market conditions
That's interesting thoughts - I would have offered the 50% right there if I wanted to spend my cash on it, but since I really dont want to do that (for starters I may need some for a re-fi of my house I;m trying to get done), I didnt want to throw it out there, have him accept, then not be able to find the money anywhere. Seems like almost nobody is doing lot loans these days, especially if you're not trying to build a house right away. This guy's bank is actually who I was hoping to talk to about that, since they seemed amenable to the idea. I didnt know if this kind of negotiation can happen if I am expecting essentially "owner financing" here since this guy owns the bank, and I havent had a chance to find any other banks yet.
Re: The art of the deal - Sully - 03-29-2012
HAULN-SS Wrote:CaptainHenreh Wrote:Walk into the bank, bust into the President's office, and take a wizz on his desk.
That way, first thing, you've shown your dominance. Then toss your offer into the pisspuddle and say "take it...or leave it."
Make sure your dick is hanging out for the duration, right at his eye level, so he knows you mean business.
I'll only do this if you go first on something youre trying to buy so I can see that it works
How do you think he bought his Sti :twisted: