I was reminded of a great negotiating tip the other day when a reader left the following comment on my post How to Get a Really, Really, Really Good Deal on a Home:
When it comes time to make an offer, ask for the following three things: 1) Purchase price (most of what you are writing about here) 2) A long closing time 3) Seller paid closing fees Item #2 is the red herring. Ask for a closing in five months and most sellers sitting on inventory will counter offer 2-3 months. Use this as leverage to keep your position on items #1 and #3 while giving in to #2, which you really didn't care about anyhow. In a word, never negotiate just over price.
This particular comment was about buying a home, but the principle works in any purchase where you're negotiating -- buying a car, a bed, a washing machine and so on. Ask for something you don't want (free delivery, an extended warranty, preferred financing, etc.) along with the things you do want. Then when the seller counter-offers, you have something to "give" on to make him feel like you're meeting him part way in getting to an agreed upon price.
It's an old, basic negotiating principle, and a very good one. Thanks for the reminder, Duane!
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