NEGOTIATING STRATEGIES and ETIQUETTE

[ClaudeJ1]

On 5/24/2020 at 4:45 PM, DizRotus said:

Furthermore, if I obtain something of value by windfall, I have no obligation to reflect my minimal, or nonexistent, acquisition cost in the asking price.  The market still controls.

I used to use the "legal definition" of getting something for a minimum of $1 contractually. Or, if you prefer another example, let's say I inherit a million dollar house free and clear from a righ uncle with no kids of his own, so he sells me the house for a dollar before he dies. I have no obligation to sell if for that, but I can sell it for $900,000 cash out if I can't afford the property taxes by keeping it. It's mine to do what I wish.

[314carpenter]

@DizRotus 

 

This has happened to me on more than one occasion. It is happening to me again at this very moment. What should I do?

 

I have tried to buy this (insert item here) immediately.

Told the is was on vacation.

 

I offered to paypay to secure the sale.

Told the seller does not have the capability or preference to do so at the present time.

 

Offered to make an appointment at the sellers earliest convenience.

Told a day and time and we finalized the price. Commitment was made verbally by both parties.

 

Since then, I have received (2/3) phone calls from the seller.

Both times were his attempt to extort more money from me above our commitment set on previous phone calls, due to unprecedented demand and offers from various sell sites.

 

What should I do?

How do I prevent this from happening to me again in the future?

If you are the seller, how would you protect your buyers from this kind of experience from your sale?

 

[Thaddeus Smith]

2 hours ago, 314carpenter said:

@DizRotus 

 

This has happened to me on more than one occasion. It is happening to me again at this very moment. What should I do?

 

I have tried to buy this (insert item here) immediately.

Told the is was on vacation.

 

I offered to paypay to secure the sale.

Told the seller does not have the capability or preference to do so at the present time.

 

Offered to make an appointment at the sellers earliest convenience.

Told a day and time and we finalized the price. Commitment was made verbally by both parties.

 

Since then, I have received (2/3) phone calls from the seller.

Both times were his attempt to extort more money from me above our commitment set on previous phone calls, due to unprecedented demand and offers from various sell sites.

 

What should I do?

How do I prevent this from happening to me again in the future?

If you are the seller, how would you protect your buyers from this kind of experience from your sale?

 

 

Integrity? I've had buyers tell me they need a few days - so I mark the item pending until our mutually agreed upon date. It's up to the buyer to re-engage me to complete the deal and if the agreed date passes without followup I indicate the item is available to the next interested party. When people inquire/offer on an item that is pending, I tell them up front that item is pending for XYZ date, but that I'll reach out if it falls through. There's been a few times where that backfired and I ended up selling for less than the asking price, simply because it was negotiated down before any other interest or offers had popped up, but that's not the original buyer's fault. So you either have integrity, or you haven't.

[BigStewMan]

My negotiating strategy:  

Me:  How much?

Seller:  States price.

Me: sounds good (if I like the price). No thanks, see ya (if I don't like the price).

 

For close friends, I generally offer up screen legend Anthony Quinn's tank top in trade. 

[JJkizak]

1 hour ago, BigStewMan said:

My negotiating strategy:  

Me:  How much?

Seller:  States price.

Me: sounds good (if I like the price). No thanks, see ya (if I don't like the price).

 

For close friends, I generally offer up screen legend Anthony Quinn's tank top in trade. 

Has it been cleaned?

JJK

[DizRotus]

@314carpenter

 

I have neither the time nor the energy to fully reiterate my recommended option strategy, but if a seller can’t, or won’t, take a non-refundable deposit to hold an item for a reasonable amount of time, get out the K-Y cause you’re likely to get screwed.

 

As TS mentioned, “integrity,” no contract will create integrity where it did not already exist.

[pallpoul]

A negotiation is successful when, both parties, seller and buyer walk away after closing the deal, feeling like each have lost.

 

 

[jimjimbo]

5 hours ago, 314carpenter said:

@DizRotus 

 

This has happened to me on more than one occasion. It is happening to me again at this very moment. What should I do?

 

I have tried to buy this (insert item here) immediately.

Told the is was on vacation.

 

I offered to paypay to secure the sale.

Told the seller does not have the capability or preference to do so at the present time.

 

Offered to make an appointment at the sellers earliest convenience.

Told a day and time and we finalized the price. Commitment was made verbally by both parties.

 

Since then, I have received (2/3) phone calls from the seller.

Both times were his attempt to extort more money from me above our commitment set on previous phone calls, due to unprecedented demand and offers from various sell sites.

 

What should I do?

How do I prevent this from happening to me again in the future?

If you are the seller, how would you protect your buyers from this kind of experience from your sale?

 

What should you do? Is there really any question in your mind… Walk away…

[MC39693]

Posted ML speakers (Center and 2 towers) with Velodyne DD10 as package deal. No takers, although interest mostly in the sub. Re-posted just the center channel. 2 days later buddy replies he’s interested, can I demo?  Is it my best price?  Yes I can demo, check hifiShark... yes it’s my best price there aren’t any others for sale in Canada!

 

He comes for demo, pretty close to my age, very polite guy. The speaker is in near mint condition... I play TAPS from Corb Lund (great horn, range) and start IN MY LIFE by Sean Connery (amazing voice). Buddy starts waving his hands and head. I think, oh boy he’s gonna bolt. He stands up, starts peeling $50s from a wad, hands me my asking price. We spent the next hour going over the speaker, packing it up. He wants my other ML speakers but has to sell some stuff first.  Seemed keen on the Velodyne too. Finally a good sale!

 

I guess in this economy breaking things down to bite size might eventually sell the whole enchilada!

[Travis In Austin]

On 7/17/2020 at 1:24 AM, ClaudeJ1 said:

I used to use the "legal definition" of getting something for a minimum of $1 contractually. Or, if you prefer another example, let's say I inherit a million dollar house free and clear from a righ uncle with no kids of his own, so he sells me the house for a dollar before he dies. I have no obligation to sell if for that, but I can sell it for $900,000 cash out if I can't afford the property taxes by keeping it. It's mine to do what I wish.

In the US that would be a very costly mistake because of your cost basis. You inherent at FMV on date of death. So $900,000, so if you sold it immediately for $900,000 you would have zero taxable gain. If you purchase it for $1.00 and then sell it, if you don't convert to your primary residence or other exemption, you would have a $899,999 taxable gain. 

 

You always want a stepped-up basis if you can get it. 

[ClaudeJ1]

1 hour ago, dwilawyer said:

In the US that would be a very costly mistake because of your cost basis. You inherent at FMV on date of death. So $900,000, so if you sold it immediately for $900,000 you would have zero taxable gain. If you purchase it for $1.00 and then sell it, if you don't convert to your primary residence or other exemption, you would have a $899,999 taxable gain. 

 

You always want a stepped-up basis if you can get it. 

In reality I would move into the house while it's for sale, so yes, the basis would be a huge part of the progress. My CPA would agree with you, especially if I had a rich Uncle who wasn't hypothetical!

[DizRotus]

My late uncle was hyperthetical, and died baroque.

[richieb]

Oh, a man of good taste and high culture with zero cash reserves. Our families may have split from the same tree —🌳

[Coytee]

I had a scenario here once....  was a long, long time ago.

 

Was interested in buying an item.  Was fine with the price.  Was preparing to send the funds when the seller got back to me and rescinded on the deal saying they wanted to sell it elsewhere because for them "it was all about the money" verses what is sometimes done here, giving a better price for a forum member.

 

I totally understand that and frankly, am fine with it......however, what really irked me was the failure to ask me if I was willing to pay a higher price (I was).  I would have happily met the asking price and foregone the "forum members price" because now....  I had the item I wanted yanked away so that someone else could pay the amount that I would have been happy to pay.

 

Consequently, I've never been much of a fan of the "forum members price".  If someone wants to do it, that's their business....  but if something has a value of "X", I don't see any reason why a forum member should expect to pay less (or more).  

 

[ClaudeJ1]

On 7/17/2020 at 6:29 PM, pallpoul said:

A negotiation is successful when, both parties, seller and buyer walk away after closing the deal, feeling like each have lost.

 

 

I disagree. In all my real estate negotiations classes, the spirit was: "If a deal is fair, you should be able to take either side of it."  Both parties should walk away happy they made the deal without buyer or seller remorse, which is a better way to think of it.

 

"The pessimists may be correct in the long run, but the OPTIMISTS have a much better time getting there."

[billybob]

Seeking and assuming it has been called. In the case of property, one could start with the next steps, since assuming the exchange in negotiations are done  Honey, call the bank. Call the moving company. Let's not rush yet, going to jump in my new pool. Got an extra pair of trucks...

 

 

[veloceleste]

.

[iaRIVR]

For me it depends a lot on the item, my urgency to sell, and the communication. I have a price range in mind when I list and I can be flexible when I want something sold. That also applies to my policy of holding things, having had many experiences with no call/no show. I will usually hold but try to be clear up front if the item is FCFS, or first person to tell me they are on their way.

 

I really only negotiate before, based on the assumption that I have described the item accurately and we have agreed to the value as described.  If the buyer shows up and catches something I didn't I will work with them, but I had a guy show up, demo a turntable and then offer me $50 less. I felt like he wasted my time, it was mint and exactly as described, so why has the value changed? I'll happily respond to any courteous offer that's not an atrocious low-ball, it's about the value to each party and I don't think it's bad form to make an offer based on the value to you.

 

When we bought our first house our realtor said to offer the asking price and use the inspection to negotiate. I thought that was how it was done, and while there were issues they were known before the offer. Granted the seller could have refused to negotiate, but in retrospect I felt that that was a shady tactic. Also did not like that I was not able to talk to the homeowner directly.

 

 

[OO1]

On 7/17/2020 at 12:56 PM, 314carpenter said:

@DizRotus 

 

This has happened to me on more than one occasion. It is happening to me again at this very moment. What should I do?

 

I have tried to buy this (insert item here) immediately.

Told the is was on vacation.

 

I offered to paypay to secure the sale.

Told the seller does not have the capability or preference to do so at the present time.

 

Offered to make an appointment at the sellers earliest convenience.

Told a day and time and we finalized the price. Commitment was made verbally by both parties.

 

Since then, I have received (2/3) phone calls from the seller.

Both times were his attempt to extort more money from me above our commitment set on previous phone calls, due to unprecedented demand and offers from various sell sites.

 

What should I do?

How do I prevent this from happening to me again in the future?

If you are the seller, how would you protect your buyers from this kind of experience from your sale?

 

Always sign a document ---this is rule no 1 ------with the-names of both parties - and the price set clearly  and always leave a deposit as it constitutes acceptance on the part of a seller -and have him sign he received the cheque , make a photo , as it can be traced      / never postdate a cheque -it has to be payable on the date of the sale , if all these conditions are met , you have a valid sale , however , if the seller changes his mind , he cannot cash the cheque , he has to cancel the sale and remit the deposited cheque  -

 

  the moment  the cheque is cashed  , the contract is valid  between both parties -no going back -

[artto]

As an architect, one of the most productive strategies I've used to weed out a prospective client was, after an initial review of their ideas and discussion about their goals and objectives I would drop the question "So, how much do you NOT want to spend?".