Did the last seller torture you with negotiation?
Here is a question that I came across recently.
“We made an offer on a bank-owned home. A week later we found out there were multiple offers and the bank asked us for our highest and best offer. We gave them our highest offer which was full price with 3% closing costs. The bank countered back at full price with no closing costs. We need the closing costs, so why would the bank counter when we already gave them our highest and best price? This is torture!”
Unfortunately, I was not able to help them as they came to me too late. Once you are that far into a contract and working with an inexperienced agent, any help I give to the buyer would be considered interference. That would get me in Major Trouble.
Hopefully, you can learn from this unfortunate experience.
There is an old saying that goes Buyers are Liars and Sellers are too! My friend, Richard Courtney, wrote a book about it. You can find it here.
Most buyers do not give their absolute highest and best when asked.
How do I know?
Since I am not a mind reader, I can only make that statement through observation. I’ve seen many times where a buyer improved their highest and best when asked.
Even worse, I’ve seen them submit a revised highest and best (multiple times) without prompting.
The sad thing is these buyers thought they were stuck and would not be able to buy the home. What they did not know is the seller may have accepted an offer that included closing costs if they could net the list price.
This is where DIY buyers and inexperienced agents often lose.
They do not know how to negotiate a way to bridge that gap because they are only thinking about their immediate needs and wants. It’s nearly impossible to create a solution when you only consider one side.
If I were their agent, here is how I would have answered their concern.
If you love this house and do not want to lose it, then go ahead and make the counter. The difference in price equals about $30 per month (For the average Nashville home).
If you are not in love with this house and are ok looking for another home, stick to your offer and resubmit. If yours is truly the best offer, the bank will probably accept it.
Sometimes, making a decision is easier when you step back to where you can see the bigger picture and consider all of your options.
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