Never Accept the First Offer (2024)

FAQs

Why should you never accept the first offer? ›

The First Offer May Not Reflect the Business' True Value

If you accept the first offer without negotiating, you're most likely leaving money on the table that you could use for your retirement, give to your family, or use for your next business venture.

Ask, don't offer.

Keep in mind that choosing not to answer an unreasonable offer is an implied rejection. Talking about relevant facts, principles, and interests will expose the offer's flaws and often lead to progress.

Start by saying thank you and expressing your excitement and fit for the role. Then ask for a phone call to go over some details and ask a few questions about the offer. Usually something like, “I have a question about the salary,” is enough to get across that you're planning on negotiating.

Now let's move on to another major principle that is critical in the beginning stages of the negotiation: Never say yes to the first offer or counter offer. The reason that you should never do this is that it automatically triggers two thoughts in the buyer's mind.

" So sometimes you should say Yes to the first offer, but it's almost a 100 percent rule that you should Never Jump at the First Offer. Key points to remember: Never say Yes to the first offer or counter-offer from the other side.

When customers ask, “what's your best price?” they are actually asking, “What is the lowest price that you will sell me this product for?” The question can have various different answers. There is no one-size-fits-all response. As much as possible, however, avoid responding with the lowest price just to close the deal.

“Thank you so much for the offer. I'm really excited about the company and the role. I want to be upfront with you that the salary is lower than I was expecting based on my skills and experience. I'd like to be at a number more like $X.

What Is Right of First Offer? The right of first offer is a similar contractual right that instead gives the holder the right to make an offer to buy when the owner of the asset decides to sell it. However, the owner is not obligated to sell to the holder of the ROFO if they do not like the offer.

Should you accept the first offer in negotiation? ›

Because of the inherent ambiguity of most negotiations, some experts suggest that you should wait for the other side to speak first. By receiving the opening offer, the argument goes, you'll gain valuable information about your opponent's bargaining position and clues about acceptable agreements.

My advice: If something is important to you, absolutely negotiate. But don't haggle over every little thing. Fighting to get just a bit more can rub people the wrong way—and can limit your ability to negotiate with the company later in your career, when it may matter more.

Don't Always Accept the First Offer.

Accepting the first job offer may set you up for a bad deal. Always remember that unless clearly stated your employer expects you to negotiate salary, you should never feel uncomfortable giving a counteroffer.

The deciding factor on whether to go first in a negotiation is how much information you have regarding the other side's willingness to pay. If you have sufficient information about the other side's willingness to pay, go first to avoid being anchored.

In your response, thank the employer or hiring manager for the counteroffer and acknowledge their consideration of your skills and qualifications. Express your appreciation for the time and effort they have invested in the negotiation process.

Bottom line: Don't accept a job offer unless you know 100 percent it's what you're looking for. Still, there may be legitimate reasons to continue interviewing even after accepting another offer. You decide to get closure on the other opportunities.

Stated simply, there is a strong correlation between first offers and final outcomes. Opening offers also influence the offers that the other party (the opponent) makes. Meaning, if you open first, the other party's counteroffer is influenced by your offer—not good for them.

Casey Napolitano, real estate agent, broker and founder of NDA Real Estate in Southern California, says the first offer is usually the best, but every situation is unique and sellers should assess the strength of the offer before making a decision.

ROFR Cons For The Buyer

It doesn't guarantee purchase. Sellers aren't obligated to list their property. It may be unfavorable if the home value drops. It may result in an overattachment to a specific property or deal.