The beginning of contract negotiations
is usually the end of many weeks or months of hard work for the buyer or seller. The work
ahead requires skill in order to maintain a strong position.
Sellers can lose their advantage if they do not
counter an offer that a buyer has made. Even if the initial offer is lower
what the seller feels is fair market value, it is advisable for the seller to respond
with some reduction from the asking price. The most important factor in
negotiating is good communication.
The best way to handle a low offer is to counter
it with definite terms that are favorable to the seller. A counter offer has some
advantages: 1) it keeps the buyer interested, and 2) it moves the negotiation
forward and gives the buyer the opportunity to submit another offer that the
seller is more likely to accept.