And please don't take offense to anything I have to say.

Got response fromSellers Agent (SA) who said the crux of the problem was the offensive way my agent acted - bullying, bluffing, not understanding the contract at all....and his client feels keeping $500 of the $1000 earnest money deposit (EMD) is fair.

This is both an offensive and a defensive tactic.

Never say, “You’re wrong.”Principle 3- If you are wrong, admit it quickly and emphatically.Principle 4- Begin in a friendly way.Principle 5- Get the other person saying “yes, yes” immediately.Principle 6- Let the other person do a great deal of the talking.Principle 7- Let the other person feel that the idea is his or hers.Principle 8- Try honestly to see things from the other person’s point of view.Principle 9- Be sympathetic with the others person’s ideas and desires.Principle 10- Appeal to the nobler motives.Principle 11- Dramatize your ideas.Principle 12- Throw down a challenge.Part Four: Be a Leader: How to Change People Without Giving Offense or Arousing Resentment Principle 1- Begin with praise and honest appreciation.Principle 2- Call attention to the people’s mistakes indirectly.Principle 3- Talk about your own mistakes before criticizing the other person.Principle 4- Ask questions instead of giving direct orders.Principle 5- Let the other person save face.Principle 6- Praise the slightest improvement and praise every improvement.

If it is louder than allowed they will likely just warn the person with a first offense .

Usually the state gives a cease and desist for first offense.

Again, not knocking you here so don't take offense.

No offense, but I'd prefer to have a piece of their action over a piece of your action. 

If you're thinking about a "low ball" (don't take offense I don't literally mean it but some seller's will take it as such) it may help to have your agent, assuming you already have one, present in person with some kind of net sheet to explain your thought process on the offer.

Good thing about LA is that u can drive a couple hours out and find high ROI deals.word of advice though is if its' not a true turn key in an area u don't know u can get BURNED lose all your assets ... but same for in californiamost likely you won't buy anything or realize it's a lot more work then you think. no offense just saying it like it isanyways i can go on forever good luck.