The Art of the Deal

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Submitted by FlyerInHi on July 6, 2018 - 1:34pm

Say you’re in escrow to buy a house.
The seller moved out and is buying another house, maybe on contingency.

A few days before close, you threaten to cancel the deal unless you get a price reduction. The earnest money deposit is not that much... it’s a risk worth taking.

This is the strategy or cornering an opponent to extract a concession to your benefit. I think it would work. Why not?

Submitted by Huckleberry on July 6, 2018 - 1:49pm.

All depends on who you're negotiating with.

Honestly if it were me, I would take your earnest money and put my house back on the market.

That new money would give me more towards closing costs on the next house...

Submitted by FlyerInHi on July 6, 2018 - 2:22pm.

Yes. You need to know your opponent.
They sellers could be squabbling heirs. Maybe they need the money and spent it in advance of the deal.
Or maybe the sellers have financial commitments continent on the deal. You feel them by asking for a delay in closing. Then you strike at the most inopportune time for them.

Submitted by Hobie on July 6, 2018 - 3:11pm.

That's just being an ass.

Submitted by FlyerInHi on July 6, 2018 - 9:06pm.

Hobie wrote:
That's just being an ass.

Yeah, but how much money is that worth?

Submitted by flu on July 7, 2018 - 7:47am.

All you would be proving is what many of us already know.

A person can talk all they want about being open minded, progressive and more refined than most others.. Yet demonstrate, through actions, their true color to be completely void of morale character. Go figure.

Just saying.

Nice threadbait btw. it's kinda dead these days on piggs. I commend you for trying to keep it alive.

Submitted by scaredyclassic on July 7, 2018 - 11:04am.

flu wrote:
All you would be proving is what many of us already know.

A person can talk all they want about being open minded, progressive and more refined than most others.. Yet demonstrate, through actions, their true color to be completely void of morale character. Go figure.

Just saying.

Nice threadbait btw. it's kinda dead these days on piggs. I commend you for trying to keep it alive.

when piggington comes to compleye halt, re mkt will crash.

Submitted by FlyerInHi on July 7, 2018 - 1:30pm.

flu wrote:
All you would be proving is what many of us already know.

A person can talk all they want about being open minded, progressive and more refined than most others.. Yet demonstrate, through actions, their true color to be completely void of morale character. Go figure.

Just saying.

Nice threadbait btw. it's kinda dead these days on piggs. I commend you for trying to keep it alive.

Gee, I wonder where I learned this. Must be my liberal friends telling me over quinoa salad.

Submitted by FlyerInHi on July 7, 2018 - 1:36pm.

scaredyclassic wrote:

when piggington comes to compleye halt, re mkt will crash.

I’m seeing price reductions.

Submitted by DataAgent on July 7, 2018 - 3:33pm.

You can't lose. Verbally requesting a price reduction doesn't give the seller the right to keep your earnest money and cancel the deal. The seller has the right to say "yes" or "no".

If the seller says "yes", you win. If the seller says "no", the deal goes forward as negotiated.

How can you lose? You have a signed contract with a fixed price and terms. The seller may think you're a crummy weasel but who cares? You'll never see them again.

Would Trump do it? In a heart beat.

Submitted by FlyerInHi on July 7, 2018 - 9:15pm.

DataAgent wrote:
You can't lose.

Smart you!

I have the option to cancel and lose my earnest deposit but the seller does not, else I can sue for specific performance.

I might use this one day.

Submitted by DataAgent on July 7, 2018 - 9:32pm.

FlyerInHi wrote:
DataAgent wrote:
You can't lose.

Smart you!

I have the option to cancel and lose my earnest deposit but the seller does not, else I can sue for specific performance.

I might use this one day.

I've done it. Several times. But in commercial real estate transactions. Dealing with commercial real estate is like swimming with sharks. Minnows don't survive.

Submitted by 42nate1 on July 8, 2018 - 4:18am.

Guess it depends upon where you live. I live in San Diego. There are bidding wars for the few properties that hit the market.

I think in most cases, the seller would happily take your deposit, re-list, and go into escrow with a higher offer, and your lost deposit as a bonus. I would.

You, on the other hand, would no longer have a property, would spend months competing for the opportunity to purchase another house, would pay more, and - oh yeah, your good faith deposit would be gone.

Just bought a rental a few months ago. It took time to buy this one. We lost out so many times to all-cash buyers.

Submitted by FlyerInHi on July 8, 2018 - 12:07pm.

What if the seller has a deposit on a house they are buying perhaps in a new development, so they are counting on the cash from the sale?

Of course, when you have a strong hand you play it against the weaker hand.

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