“Splitting the Difference” & Other Negotiating Tactics

Real Estate Negotiating Principles

“Whomever speak first [in a negotiation] . . . loses.”

–Anonymous.

“Whomever proposes “splitting the difference” in a negotiation stands to get the better bargain.”

–Corollary, Ross Kaplan.

Veteran negotiators will attest to the truth of the first statement:  if you speak first, you never find out if the other side would have offered/accepted (even) more advantageous terms.

It’s also the case that the more (over)eager party can’t restrain themselves, and gives that away by — yup — talking too much and/or too soon.

But I’ve also found the second principle to be (mostly) true.

The following is an exaggerated, fictional exchange — but serves to illustrate the usual dynamic.

Buyer:  Here’s my written offer of $250k for your $500k (listed) home.
Seller:  Sorry, that won’t work. I’m countering $485k instead.
Buyer:  That’s still too high.  How about we split the difference?

To be sure, there are situations where splitting the difference is an appropriate — and fair — resolution to a negotiating impasse.

But only when the deck isn’t already stacked in favor of one side or the other.

See also, “Negotiating Tips.”



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