Special offer

Strategy or Stupidity...when to end a negotiation

By
Managing Real Estate Broker with Simply Summit Realty

So this was a first for me.  I have a listing that received a really lowball offer (not uncommon in this market). My Sellers came back with a reasonable counter that should have closed the deal.  I had already been told from the buyers agent that Mr. ___was extremely analytical and had been crunching numbers to determine the exact fair market value of the property. That's fine, except that he thinks that he is pricing a three bedroom instead of a four bedroom.  Evidently he didn't see the closet in the fourth bedroom.

So, the negotiations go back and fourth and then stall.  Both the Buyers agent and myself presented a "split the difference" approach to our respective clients.  Mine agreed on the middle price, but strangely enough, the Buyer came back with a counter LESS than his previous offer.  So the question is:  What kind of strategy is that?  I suppose that he really didn't want to pursue a contract and this was a strategy to halt the process without his wife getting irritated at him. 

But this cannot be the first time this scenario has presented itsself.  Wondering if anyone out there has experienced the same thing and if they were able to continue negotiating to a successful Close? Thanks in advance for any insights.  Signed...Baffled in the High Country.

Posted by

Jenny Gloudemans

Owner/Broker, MBA,CNE

Simply Summit Realty

Bill Reddington
Re/max By The Sea - Destin, FL
Destin Florida Real Estate

Soumds like a takeaway principle. Here is the counter. You didn't accept the counter so buyer is offering less. Pretty much Doesn't work in this market and usually annoys the seller. Bet they come back at some point.

Oct 12, 2012 01:25 PM
Dee Mayers
Covina, CA
San Gabriel Valley, CA

I recently had a client that would not accept a low ball offer.  She did not want to negotiate period.  I said let's counter, she said no and that was the end of that.  Soon after we received another offer that was closer to what she wanted.  We countered, the buyer accepted and we closed.

Maybe this is his strategy to get out.  Coming back with less that previously offered is not the way to negotiate.  Best and final offer no more wasting time and if your client does not like the offer, move on, NEXT!  I'm sure you will receive other offers.

Oct 12, 2012 03:11 PM
MaryBeth Mills Muldowney
TradeWinds Realty Group LLC - Braintree, MA
Massachusetts Broker Owner

Yes, people are out there just testing the sellers for their motivation to the sale.  I coach my sellers before we even have an offer that this is the mentality and to not get ruffled as they may be back with a more appropriate offer, a polite "thankyou, but no thank you!".

Oct 21, 2012 08:09 PM