When negotiating purchase price, should you divulge evidence from data obtained on the sales history of the property to support the reason you are making a particular offer? My thinking is you mightn't do it with an initial offer, but if you can't get the vendor to meet you on price, it would ultimately be a good idea to explain the research in having arrived at an offer, i.e. sales history of the property, growth in the area since the last sale, etc. You would assume this is some leverage and shows you are not just plucking the number out of the air.
Your thoughts?
Absolutely.
Vendors often think their property is worth more than it is, and get annoyed if people offer low.
But if you can provide proof that it is only worth $x. then they hopefully will be sensible and negotiate.
The Practical (analytical) versus the Emotional. Emotion will almost always win. Practiacl is the Buyer – Emotional is the Seller and like Marc says most sellers believe that there property is the best in the street (world for that matter).
I would almost bet that the research done by the Buyer will be weighted in the Buyers favour. I had an experience with this from a Buyer not so long ago but he had purchased his research from a reputable company. Their buying range was out by over $50,000 and he missed out on the property. In hindsight not a happy camper and will not use the services of a research analyst again any time soon.
For what its worth.
Jon
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