The following was found on Dave Ramsey’s blog in an article entitled Financial Faux Pas and it couldn’t be more true. Negotiations require a realistic point of view with reasonable expectations:
Making unreasonable offers when negotiating.
One of the quickest ways to end a negotiation is to make a ridiculous offer. It shows the seller that you aren’t serious about buying and you think they’re stupid. You’re saying, “Hey idiot. You obviously have no concept of the cost of physical objects that exist on this Earth. But, tell you what, I’ll humor you and offer you 40% of your asking price. You’re welcome. Dummy.” How do you know if you’re making an unreasonable offer? Put yourself in their shoes. Would you take $150,000 for a house that’s listed for $275,000? Would you take a quarter for a lamp that’s priced $10 at a garage sale?
The same can be said for a seller who lists their home for a ridiculous asking price. “You want how much for that lamp?”