Doug Miller wrote:
In a successful negotiation, both parties feel that they have a good
deal (or,
if not a good deal, at least the best deal they're likely to get in
the
circumstances). If you buy this house at anything over the 195 that
was your
last offer, I suspect that you will not feel that you've gotten a
good deal.

The only way to win the game is not to play.

Except then he loses out on the house, and as he said in his OP, there
are few properties of this size and in this range available.

His original bid was $192. Seller came back and asked for $202,
probably hoping the buyer would meet him in the middle at $197. He
didn't. Seems to me the seller is prompting him to meet him in the
middle at $197. IMO, it's too late to go back and regret his opening
bid. If he'd wanted only to pay $195, then he should've started with an
opening bid of $190.

They are quibbling now over $2K. If it were me, and I REALLY wanted
this house, I wouldn't get all bent out of shape over $2K. If I were
the seller, I also wouldn't get all bent out of shape over $2K! Six
months from now, once settled in the house, that $2K is going to be a
distant memory for them both.

Perhaps there is a way to save the deal that would be win-win for both:
go with the $197, but ask the seller to throw in $2K's worth of
something. Fixtures, window treatments, furniture, fireplace irons,
needed repairs, more favorable closing date, kick-back to help with
downpayment. Get creative and find a way to eek out your $2K worth of
perceived value. Ask both agents to put their heads together to find a
way to help save the deal - it's in their interest to close this, too.
Seller gets his price, buyer gets something of value in return. Deal
goes through, everyone is happy!

P.s. our neighbors got some pretty nice, new leather furniture out of
their recent, similar negotiation.

jen