When it comes time to actually negotiate the selling/buying price of the property, emotions and nerves can become a little frayed. A skilled agent will be able to keep the negotiation logical and on pace, a bad agent may let things spiral out of control, thinking they are clever by allowing the two parties, vendor and purchaser, emotions dictate the play of the negotiation.
It is important no matter if you are the purchaser or the vendor to remain objective and leave your emotions out of the equation. This is difficult at times as the vendor feels by lowering the price they are losing money and on the other hand the purchaser feels they are paying too much if their offer is raised.
To find the price that suits both parties it usually involves a process of small adjustments to the price until it is mutually agreeable to both parties. The price of a property is very rarely set by the vendor stating their lowest price or the purchaser stating their highest. Even market value have little to do with the price when the negotiation starts, it is down to what both parties feel is fair at the time.
Be careful of falling into the ultimatum trap. This is a sure fire way to close a negotiation fast. If the vendor tells the purchaser that they will not under not circumstance settle for anything less than $X, then the purchaser feels there is no room for a negotiation and will back off, this is also true if the purchaser does the old Take it or Leave It offer, chances are the vendor will just look to another buyer. Keep the channels flowing, doors open etc.
In certain markets, vendors and purchasers can afford to make ultimatums, however it is still advisable to keep the doors open and this is only achieved by being rational.
Vendors should be aware that backing out of a negotiation because the initial offer is not what you are lloking for generally means you will never get to see the final offer. The first offer is usually the lowest to test the water and then the real negotiation begins.
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