The old “Poor Mouthing the Offer” which some buyer agents still recommend is an outdated & flawed strategy, especiallyin a seller’s market.
Recommending that the buyer act like they can barely afford their own offer in hopes that the seller will feel sorry for them and lower the sales price, causes buyers to lose deals!
Think about it, if a realtor recommends this strategy when they are the Buyer’s agent, do they suddenly forget this same strategy is being used when they are the Listing Agent and other Buyer Agents make offers on their listings using this same antiquated strategy?
Scenario: $1,000,000 asking price
Buyer #1:offers $960,000 submitted with a qualification letter for the same $960,000 with $5,000 scribbled in the deposit line of offer
Buyer #2:offers $955,000 submitted with a qualification letter for $1,200,000 with a $40,000 Good Faith check or Escrow Letter
Most sellers and listing realtors would go with Offer #2, where the buyer is negotiating from a Position of Strength, backed up with a substantial Deposit showing they are a serious and capable buyer.
Very good point @Steve McRory
I like it
Thanks @Patrice Penda .
It does make sense, but you would not believe the backwards, antiquated thinking out there with buyers and buyer agents who advise submitting a lowball offer with a qualification letter at the same as the offer.
Scenario: I'm a seller here in the 2018 seller's market and I get some ridiculous lowball offer, a pathetic $1000 EMD (or none at all, just written on the offer) and a qualification letter saying the buyers can barely afford my home at the lowball price? Go away and don't bother making another offer!
On my referrals to my realtor partners, we're comin' in low, stealth and armed to the teeth and it works like a freakin charm!!
Then I'll get a client who calls me to get pro-approved, whose working with their brother's, mother-in-law, Susan Rottencroth from Rottencrotch Realty, and I teach them the best way and they'll be on board and what happens when they find a property?
I get "the" call...."Hello Steve, can you drop the amount of the letter you wrote from 675,000 down to their offer of 479,000?" "We don't want the seller to know they can afford more than the lowball offer I'm sending to them."
So ridiculous, yet so common.
This strategy has worked like a charm twice in the past 8 days.
One buyer/borrower is working with her prior realtor, who I don't know, and she had been striking out on offer after offer using a weak letter from her realtor's "preferred" lenderrrrrr that was written for $470,000, a round number on the preapproval letter?....Ummm, how bout NO!
Borrower/ buyer actually qualified for a much higher sales price, so after the typical pushback from the buyer's agent, and after destroying the buyer agent's "preferred" lenderrr and my borrower kicking him to the curb, I was able to take complete control.
I convince my borrower to ignore bad, antiquated advice from an industry relic and do things my way, the right way, the way that works best.
I wrote her a new letter for $541,850 to make offers on homes in the 475k to 485k, made her realtor submit the offer a specific way and guess what? My way worked!
To all BP Investors: This is not Rocket Surgery. If you're buying real estate and being advised to use the failed and antiquated strategy of...Poor Mouthing The Offer, this is a flashing neon sign telling you to find another realtor to work with immediately!
very sound advice Steve and it makes sense... thats if your serious and want make the deal. when your hide you hand, the
im a contractor from bklyn ny (still here) and im thinking on starting rehabbing and flipping in south florida. its all dried up nyc.
i cant tell you how many times people here will haggle with me on price using poor mouthing.... then they are having material shipped from Switzerland for me to install... not always from there but u get the gist.
it creates problems for me as i have to change order them rather than give them a price for everything prior. all to save a buck and make a buck...
but it ends up costing them more later.
where would be a good place to looking for property, around 500k?.. south florida, north of delrey beach.. thx
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