Buying or selling, they can both present challenges. One thing I have learned is it pays to be a smart shopper and do your homework first before you go out the door to buy, or before you list something to sell. This goes for anything you buy or sell (golf clubs, a tractor, a house). It just seems the frustration level can go up rather quickly the higher the dollar value of the item.
If you do your own research and have that info available when trying to buy or sell, then you have those facts to negotiate with going into the process. It can be frustrating if you are setting your price based upon your emotional ties to something, or your "feeling" about what the price should be, or based upon incomplete research of the current market for that item.
I bought a tractor a few months ago (and a new house too after 6 years of looking), did my market research first, and I can tell you the market for used tractors is tough right now for sellers. I really wanted to buy a nice used tractor, and tried to deal on a few, but I ended up buying new. Because of the tough economy right now, many manufacturers are trying to compete for sales and are offering really attractive rebates/discounts/financing. As a result of this activity on new equipment prices, I believe this is causing both the prices and sales on used equipment to stagnate unless the seller is willing to be aggressive on cutting the cost to be competitive in the current tough economic environment.
In closing, here are a few thoughts I try to keep in mind when buying or selling.
1. You MUST do your own market research first and it helps to have a folder available with the facts you can present to justify your price. Otherwise, you really don't have any solid figures to start with, or to negotiate with when the time comes.
2. Do a fair analysis of both the general market and of the item you are trying to buy or sell, to set a fair asking/starting price. This can get complicated, but is necessary, and should be done with an unbiased and objective look at all the variables that go into the final price. You can have others help with this if needed.
3. If you are firm on the price, put that in your listing so everyone knows (or should know) up front and you don't waste people time.
4. On selling used tractors right now (and houses) you need to be willing to offer a discount that a buyer will find attractive in the current market, or you need to be willing to sit on the sideline and wait for the market to change in your favor.
5. Don't let emotions come into play, just deal with your market research facts and remember that at the end of the day it's just a business deal.
6. As a buyer, set your starting price a little low so you have room to come up if/when negotiations take place. As a seller, set your asking price a little high so you have room to come down if/when negotiations take place. Decide your final price before you even begin. In my experience 10-20 percent is standard wiggle room on making a deal from the starting price, but this can vary.
7. Any offer is always a good offer to start. Just remember it is simply a place from which negotiations can begin, and it indicates interest. You can then quickly determine how serious and reasonable someone is in their willingness to negotiate and make a fair deal. If the other party is truly willing to listen objectively to the facts you have brought to the table, and you have good facts, then you are half way home. If the other party has emotional ties to the deal, or is dealing with bad facts or assumptions themselves, then you can politely part ways and agree to disagree. Remember, there is some art to good negotiations and both parties should be willing to compromise at least a little so everyone feels they have made a good deal. It's also useful to know when a deal is not within reach and it is time to politely draw a line in the sand on terms and be willing to walk away. This last part can be hard to do, but it can useful for your piece of mind and sometimes can shift the deal in your favor.
8. Learning the art of negotiating is a useful and some would say necessary life skill for survival. If you don't already have these skills, they can be learned through much patience, and practice, practice, practice. Good stuff to teach your kids
.
9. You will encounter idiots everywhere in life. It's up to you to learn how to deal with them and make sure they don't spoil your outlook on life
! Just remember, there are lots of good folks out there too :thumbsup:!!!
