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3 Things To Know: Secrets to negotiating

There’s always that question in the back of your head: did I offer too much?
Published: Oct. 6, 2021 at 5:17 PM EDT
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CHARLOTTE, N.C. (WBTV) - We’re On Your Side Tonight helping you make an offer.

Whether you’re buying a house or a car, negotiations are tough.

There’s always that question in the back of your head: did I offer too much?

Or not enough? How tough should that first offer you make be? Some researchers say they’ve got the secret.

So we’ve got three things to know.

Thing one is how they figured this out.

This research was done by the University of Technology Sydney.

They did an experiment. It was a bargaining game.

Players would exchange offers for a split of $10. The idea was to mimic the start of a typical negotiation.

Thing two is what happened. Being tough didn’t work.

When someone made a really tough or low offer, the other person would be spiteful with their counter-offer.

They wanted to punish the other player because they didn’t see them as being willing to compromise, or they’d be insulted. It soured the atmosphere and made it difficult to negotiate and get a good deal.

So, what’s the magic offer?

That’s thing three.

The lead author says, “We found that there is a small window where an offer is lower than an equal split, but not so low that it triggers negative emotions. It was viewed as ‘fair game’ to start the negotiation at this point.”

They say, your opening offer shouldn’t be too hard but it should be a decent bargain.

Otherwise, you might get a bad counter-offer. And if you go too easy, you might get taken advantage of and lose out on a good deal.

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