Negotiation is one of the most important business skills you can have. Infact, we’re all negotiating ourselves through life, and the very outcome of being a good negotiator is getting what you want quicker. I’m sure you’ll that.
So in this article, which is a continuation of our business basic series, we would be looking at how to negotiate a deal to purchase an Asset.
I’m sure you’ll learn one or two business tips, so let’s dive in.
5 Nuggets To Negotiate a Deal
1. Spend what you can afford
It is very important to spend money on asset you can afford when you’re just starting your business/investment. This is simply because you’re still prone to make some silly mistakes. It’s not just the right time to borrow money and acquire big asset, as time goes on you will do that.
If you can limit the amount you’re spending on the asset based on your pocket, and what you’ve got at the moment, then you’re good to continue the negotiation and move on to the next stage.
2. Point out holes
If you want the seller to reduce price for you, then you’ve definitely got to point out some faults on the asset. Note that this doesn’t mean you’re belittling an asset/making it inferior, it just mean you took notice of some stuffs that could make the asset cost lesser than the proposed price.
If it’s real estate, you can make mention of the distance of the house to the town. You can make the agent realise that the walls are stained or weak therefore you would be spending money on it. What all these does is to help the seller consider your offering price or get you a discount.
Another thing you can point out in a real estate deal is that the property is old, dilapidated and probably far from express. The same is also applicable to non real estate asset. Point out reasonable holes in it to get a discount.
3. Walk-away strategy
This strategy is very useful when you and the seller are in lugggerhead and things seems not to be moving forward.
What you need to do is to let the seller know you’re moving to a better deal or considering other sellers.
Most times when you try to walk away, the seller would call you back.
4. Leverage other sellers
The only way you can know the real price an asset worth is what other sellers are willing to sell it in the market.
If the current price is far cheaper than what your seller is telling you to buy, then you should be looking at giving a lower offer. Don’t just pay any seller at the price they give you. Look into what other sellers are giving for thesame asset in the market.
You don’t need to rush your way through a deal. Take things slowly and in the right way. Cutting corners or being lazy won’t help you. Always do your due diligence, and if possible, know more than the person at the other side of the deal.
Finally, I hope you’ve learn something new. Now go out there and employ this simple techniques. I will love to here your success story in the comments below.
Always to your financial success,
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PS: Patience is key when negotiating. Don’t cut corners.