Good Faith Deposit, Negotiating from a Position of Strength

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Negotiate from a Position of Strength

The old “Poor Mouthing the Offer” which some buyer agents still recommend is an outdated & flawed strategy, especiallyin a seller’s market.

Recommending that the buyer act like they can barely afford their own offer in hopes that the seller will feel sorry for them and lower the sales price, causes buyers to lose deals!

Think about it, if a realtor recommends the "Poor Mouthing the Offer" strategy when they are the Buyer’s agent, do they suddenly forget this same strategy is being used when they are the Listing Agent and other Buyer Agents make offers on their listings using this same antiquated strategy?

Scenario: $1,000,000 List price

Buyer #1:

offers $960,000 submitted with a qualification letter for the same $960,000 with $5,000 scribbled in the deposit line of offer

Buyer #2:

offers $955,000 submitted with a qualification letter for $1,213,700 (odd number is for a reason) with a $40,000 Good Faith check or Escrow Letter

Most sellers and listing realtors would go with Offer #2, where the buyer is negotiating from a Position of Strength, backed up with a substantial Deposit showing they are a serious and capable buyer.

Anyone know of any realtors who actually make offers this way?

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No, just 25 yrs of experience being involved in literally thousands of deals and watching realtors do things the wrong way or take shortcuts, loosing deal after deal for my borrowers is what has taught me what works best.

Unfortunately, down here in FL, everybody and their mother has had or has a real estate lic. and too many think or lead their clients to think they know a lot more than they really do.  The WORST are the ones selling in the 3 million and over range.

I see it and have to deal with the extra time and effort needed to work badly structured and submitted offer after offer, house after house.