Something to Consider When Negotiating with a Real Estate Agent
During the course of the past three years, I’ve sold several domain names to real estate agents and companies in the real estate business, and I’ve also unsuccessfully negotiated with them as well. I want to share a bit of insight I have gleaned from my experience.
When I price my domain names, more often than not the price I give is at optimistic end of where I would like to sell a domain name. Obviously if I think a domain name has a market value of $25,000, I am going to ask for $25,000 when I am asked for a price. As is the case with most negotiations, the buyer generally wants to pay less than the asking price, and the negotiation determines where you end up.
Dealing with real estate professionals can be a bit different. Most real estate professionals deal with homes and properties where the final sale price is somewhat close to the asking price. On occasion, they might end up negotiating a deal that is 20% more or less than the ask, but most of the time, they are dealing within a fairly tight range.
When it comes to domain names, that might not be the case. A domain owner may ask for $25,000 but would be willing to sell the domain name for $10,000 cash with a quick closing. Domain negotiations are far different than real estate negotiations. There is a far wider negotiation range with domain names than real estate.
As a result of the differences in negotiation strategy, if you price your domain name a significant percentage higher than the real estate professional would pay, he or she may not even counter offer. If you are offering a domain name for $25,000 and the counterparty replies that the domain name is priced much more than they would pay, don’t assume that their offer would be $100 or something else unreasonable. There is a good chance it might be, but there is also a chance they are willing to pay $10,000 and didn’t want to insult you with an offer that is less than half of your asking price.
Different people have different negotiation strategies. I happen to think that you should consider how a real estate professional might negotiate before writing one off completely. You might not get close to your asking price, but that is all relative, and perhaps the offer doesn’t need to be all that close to induce you to sell your domain name.
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