between the sale of this house and the purchase of the other.
On the other hand if this person has plenty of money and his wife is pressuring him to get the more expensive home then that brings a time pressure into play that might drop the value of the house in exchange for the peace of mind of being able to move quickly.
If the person is in financial trouble and needs to sell the house then knowing the degree of financial trouble can help you guess at the value they are placing on the sale. Similarly if the person is moving city to take up a new job then knowing their deadline can be very useful to you.
In the case of the buyer their reasons for buying can greatly influence the value that they place on the house.
If the buyer is an experienced investor then they will place a commercial value based on the profit that they can make. If you push beyond that then they will simply walk away and look for another house because they have no emotional tie to this one.
By way of contrast, if the buyer plans to live in this house and thinks it is in the ideal location and is just the type of home they are looking for then their value may be considerably higher than the value that the investor had in mind.
Of course you have to go through the same exercise with yourself and decide, before the negotiation, what the value is to you. When I am buying an investment property I have a system that I use to value the property from my perspective. I write that value on a piece of paper and put it in my pocket before I go to the negotiation. I will never go even a single dollar beyond that value.
If the other person's perceived value is not what I want it to be then I always negotiate with the intention of them changing their mind and re-evaluating the worth of the deal. In that way I can still win but they will walk away happy that they did really well. Negotiating in this manner will win you a lot more deals and the deals will stay in place because the other person genuinely believes that they won.
Article Source: http://www.articlemap.com
James Delrojo would like to help you by giving you hisebook "Unleash the Success Power of Your Mind" (valued at $27) completely FREE. Go to www.YourSuccessMind.com
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