The old “Poor Mouthing the Offer” which some buyer agents still recommend is an outdated & flawed strategy, especiallyin a seller’s market.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.
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