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Frankly, buyers say they want a good deal, but oftentimes they aren't willing to go through the emotional roller coaster the buying process can put them through. A good Realtor will try to shelter the buyer from stress, but inevitably it is up to the seller and their threshold for being aggressive.
For the most part I don't really believe in the idea of a "Good Deal" (see post Buyer's Market?" No Such Thing As a "Good Deal" ), but you can get a better deal if you are open to being flexible and buying with your mind (and agent) and not with emotions.
Too often I find buyers that want an aggressively low price, but then they fall in love with one place and they fold their cards rather quickly.
I learned from my mother that you never know the situation or needs of the seller. Some might be pressed to sell quickly for they fear the market is getting worse, or are approaching a foreclosure. Meanwhile others might have the mentality of "If I don't get what I want, I'll just rent."
How do you know which is which? Ask them (indirectly), one by one.
Round Robin System
Be flexible. Find two or three homes that you like. Don't think in terms of whether you like them at X price, think in terms of "I'd prefer house #1, but I'd consider ABC is it was $X off"
Put in ONE offer. Let that agent know that you have 2 or 3 properties and you would like to first offer on their property. (Ethically you can only put in one offer at a time. Even if you have "outs," your contract has to expire or be countered (a counter nullifies the initial offer) before you can move on.)
Review counter or accepted contract. The seller can a) accept, b) reject or c) counter. If the counter is something you want to work with, keep it alive. Otherwise
Move one, offer elsewhere. The negotiation isn't over, but you tell the listing agent that you will now offer on another property. And since your client can't make two open offers, the listing agent is still invited to re-submit. I like to end with a "we may or may not come back in a few days if the other houses don't work out.
Sidenote: Why would I reveal my strategies? A listing agent might be reading? GREAT! Then they know I'm serious when I say we are offering elsewhere and may or may not come back.
Repeat as necessary (are you really supposed to "shampoo and repeat?") with a slightly higher price, until somebody bites.
Again, this technique isn't for everyone. It might sound sexy to be aggressive and all your officemates might talk about "lowballing" and nobody wants to overpay, but if you want that extra $5k- $25k, be prepared to spend $5 on some sleep meds.
Love to get your comments. Do you do this? Do your clients have the stomach for it? Do you consider it unethical?
Written by Frank Borges LL0SA - Broker FranklyRealty.com
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.