Special offer

How to Lose a Sale

By
Real Estate Broker/Owner with Green Light Real Estate

I had been in negotiation for several days on a home for sale in Montpelier.  In this case, I was representing the buyer.  We were close, only a few thousand dollars apart.  The seller was doing an interesting negotiating dance:  Sometimes not moving in price, but suggesting he would if we came up.  Huh? 

We presented our best and final offer, and the seller's response was not to accept, and not to counter, but, again to suggest there could be a counter.  We're talking about another thousand dollars or so in purchase price.

My buyer made another offer on another home for sale in Montpelier, and it was accepted.  Not three hours later, the first seller came back and said he would take our last offer.  Too late.  We're already in contract.  Trying to eke out just another thousand dollars or so cost the seller the sale.  I'm an optimist, but still, when you've got a buyer at the end of September, and you're only a teensy bit apart on price, you can't play games.  You have to make that deal happen. 

Maybe he'll find another buyer and get his price.  Maybe that'll happen soon.  Or maybe he'll pay to heat a place in Montpelier for the next six months, pay taxes, and still not get the price we were offering. 

So...How can you lose a sale?  Easy.

•1.        Stop negotiating

•2.       Be greedy

Jeanne Dufort
Coldwell Banker Lake Country - Madison, GA
Madison and Lake Oconee GA

Good for the buyer!  Negotiating is an art, but when one party gets too cute, they really risk losing the entire deal.  This is a very good lessons for all involved.

Sep 22, 2010 01:32 PM
Barbara Le Pine
ADVANTAGE REAL ESTATE, serving Lincoln County - Newport, OR
Your agent for the Central Oregon Coast!

Ray, great story, I am glad you were on the money making side of that lost sale. I had one like that this year too, and my buyer moved on to another house, and the transaction closed.

I also had a seller who wanted to play games and lost a good buyer last year. I warned the seller that it was not good to counter "yet again." The seller did not listen to my advice and lost a good buyer. This negotiation is part of what makes this business interesting!

Sep 22, 2010 01:37 PM
Larry Bergstrom
Crescent Realty, Inc. Spanaway, WA. - Spanaway, WA
CNE, CRS, GRI

Good on you. Apparently the listing agent didn't have a lot of input on this deal. I would have asked the seller if they were willing to gamble $1,000 for X? (the offered price)

I believe that far too many agents believe that if they represent either the buyer or the seller that they should just do their bidding and say "O.K.".  You know, like the bobby dog in a car's back window.

I believe that as experts in real estate, and negotiation skills, we need to advise them of what their best move should be.

It's always easy to say "take less", but if you point out the consequences you often have better results.

Sep 22, 2010 01:38 PM
Ray Mikus
Green Light Real Estate - Montpelier, VT
Green Means Go!

Jeanne--"Cute" is the right word.

Barbara--It's just not the market to let solid buyers slip away.

Larry--You're right, and I fall victim to that too sometimes.  We need to give advice...

Sep 22, 2010 02:33 PM
Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

Ray....congratulations....now on to the next deal....

Sep 22, 2010 07:24 PM
Gordon W. Miller
Green Mountain Real Estate - Burlington, VT

To quote a recent TV ad: "We've all learned a valuable lesson." Especially, the seller, that it truly is a buyers market.

Sep 29, 2010 02:53 AM