Realtor's Are Crazy! - Posted by Johnny J.

Posted by Bert G on April 11, 1999 at 11:13:30:

There’s a handy little book on negotiation techniques, which covers just those issues you mentioned.
“You Can Negotiate Anything” by Herb Cohen. ISBN 0-553-28109-7 Bantam Books. Available in the usual places.

BG

Realtor’s Are Crazy! - Posted by Johnny J.

Posted by Johnny J. on April 10, 1999 at 17:35:37:

My partner and I located three REO’s, two listed with the same broker. We contacted our broker who we work with all the time and knows our business, our broker makes the calls to the listing broker to make arrangments to pick up the keys to the houses, upon arrival to pick the keys up, the agent at the desk said that he could not give out the keys because the listing broker would have to be at every showing. We never heard such a thing. So now our plans have been set back until next week and our broker is really upset.

Also we have not seen anything in writing as to this policy, further more the broker advises my partner and I that he would like to see at least $500.00 earnest money deposit on each house, we never put up anything over a hundred dollar bill when submitting offers. The point here is what is this broker trying to prove here? This even has our broker pulling her hair out…

This is the first time ever to use this firm.
Brokers will make you crazy…

Re: Realtor’s Are Crazy! - Posted by Bassman

Posted by Bassman on April 11, 1999 at 16:24:16:

Why not try this.
Put it in your offer that the $500 earnest money will be put up upon recieving a Signed contractby the seller. This way they get their security and you get the contract.When dealing with REO you must act like a professional , not a seminar grad.
Just my thoughts

He trying to see if your serious - Posted by Dirk Roach

Posted by Dirk Roach on April 10, 1999 at 18:02:00:

I have seen it played this way and I think that this what I would do.
"You know Mr. Jones It seems to me that you want the $500 earnest money to see if we are serious or not. And I respect that, in fact I have had that same tipe of trouble in the past myself. Where people back out of the deal, espicailly after I have put a lot of my time into it. Tell you what, let’s both ease each others worries. I’ll put whatever you would like into escrow as long as you match it. That’s fair. And we can both be reasurred that each of us is serious."
This is a nice negotiating trick that Terry Vaughan tought me.
Dirk

Re: He trying to see if your serious - Posted by Dan in Dallas

Posted by Dan in Dallas on April 12, 1999 at 09:00:36:

You hit it right on the head Dirk! My very last deal got down to the signing (no agents involved) when the seller said " Oh, by the way, I’ve heard that a buyer should give the seller some earnest money…how much were you going to give me?" My answer, (with a big smile) was: “Earnest money is to cement the deal…to
make it costly to back out without doing what you agreed to do, BUT, it works both ways. Many sellers
back out of a deal if they get a better offer, or just change their minds for whatever reason, leaving the buyer out in the cold. I have no problem with putting up earnest money, because I intend to complete the deal. So how much would you like to put up on your part?” The outcome was that the seller no longer saw the need for any earnest money.

I guess I’m getting old and cranky, but I refuse to do a deal that’s all one sided. (If it’s one sided, it’s going to be MY side :slight_smile:

Dan

I don’t understand? - Posted by SteveS (OH)

Posted by SteveS (OH) on April 11, 1999 at 09:57:34:

I don’t get it? Why would the selling broker consider matching the earnest
money deposit? Please explain.

Thanks!!!
SteveS (OH)

It all has to do with Negotiating - Posted by Dirk Roach

Posted by Dirk Roach on April 11, 1999 at 10:37:10:

Hi Steve,
Chances are the seller will NOT want to put up any of his own money at all. Fine, but in stating this he has now put himself in a perceived position of being unfair, in asking that you yourself do something that he is not willing to do. And why should you do something that he is not willing to do?
What I was doing in my earlier post (above) is leveling the playing field, in the negotiations.
In negotiating there are only 3 crucial elements needed to be successful which are always present:

1.) INFORMATION. One side seems to know more about the other and their needs than the other side knows about themselves and the other sides needs.

2.) TIME. One side doesn’t seem to be under the same kind of organizational pressure, time constraints, and restrictive deadlines that the other feels that they are under.

3.) POWER. One side always seems to have more power and authority than the other side has.

But remember all POWER (in negotiating) is perceived.
In the above scenario, what you have done is shown that you are in a position of power. Walk away power. You are not desperate to do this deal. In fact there are deals all over the place, however (you have lobed the tennis ball back into their court) if they are not serious in selling their property, why would you waste you time.
What you’ve done is change the perceived commodity. The seller thinks that they are in the driver’s seat because they have what you want. What I was trying to point out is it’s all a matter of Perception, Don’t you really have what they want, which is the ability to get the property off their hands.
Anyhow I hope that helps,
Dirk