How to compete with competition offering bogus offers to prospects?

[Anthoy James]

So I've noticed when I get calls from my mailings a lot of times I will meet with a seller and offer them something that is good for me to buy as a rehabber. (Like $240k for a property with an ARV of $400k) The seller will think about it, and when I contact them after they say they've gotten another offer from another investor for $350,000. (Keep in mind the investor that made them that offer is a rehabber like me)

A lot of times people will make up the fact that they have a higher offer just to get you to raise your price, but I know for a fact in my market a lot of investors are making offers that will simply price out any of the competition, and then when it comes to closing time they will drastically reduce the price down to a more realistic price.

They will come up with an excuse such as "I don't have the money anymore" or "The house had unexpected repairs I didn't notice", etc... By the time of closing the seller needs to sell already or maybe doesn't want to go through the hassle again and just goes through with it or will negotiate down enough that the investor is happy.

Is there anyway I can counter this? Just last week I made an offer of $210,000 on a house, ARV was $355,000. Needed about $30,000 in rehab. I called the seller back and she told me another guy offered her $350,000. I told her there's just no way he's going to go through on it, and if he was serious to sign a contract with no contingencies and put down 20%. They still decide to go with the other offer obviously, and I don't blame them, but I feel as if I'm losing deals like this.