In the world of real estate wholesaling, there’s always a lesson to be learned. One of the most important is knowing when to stand firm and not let a buyer dictate the terms of your deal—especially when you know you have a good one on your hands. Let me share a recent experience from the fall of 2023 that proves this point.
We had an off-market single-family property under contract in Massachusetts. Everything was moving smoothly as we marketed the deal to our buyer list. After some negotiation, we assigned the property to a buyer for a $35,000 assignment fee—about average for our business. It was set to be a great deal.
But, as often happens in real estate, complications arose. There was an issue with probate that needed to be resolved, which caused a significant delay. What was supposed to be a relatively quick process ended up stretching throughout the entire winter. Meanwhile, the buyer remained patient, saying he was willing to wait. We were hopeful everything would resolve itself.
Finally, in March of 2024, we got the green light. The probate was cleared, and we were ready to close. Excited to move forward, we reached out to the buyer to let him know the good news.
Here’s where things got tricky.
The buyer came back to us with a curveball. He claimed that the market had changed since the fall of 2023 and that he could no longer go through with the original deal unless we reduced the assignment fee by $15,000. His argument? The market wasn’t as strong as it had been when we first agreed to terms, and he needed the discount to make it work.
Now, I know my market. His claim was simply untrue. In fact, the market had improved by the spring of 2024. But he was trying to pull a classic move—waiting until the last moment to pressure us into lowering our fee, thinking that we’d be desperate to close and agree to his terms.
But here’s the thing: We weren’t.
Instead of giving in to his renegotiation tactics, we told him no. We canceled the contract, returned his earnest money deposit, and put the property back on the market. We listed it on the MLS and marketed it to our cash buyers again.
The results? Massive interest. In just a week, we had multiple offers, all well over the original buyer’s price. To put it in perspective, we initially had the property under contract for around $145,000 and planned to assign it for $35,000. After canceling, we received offers above $200,000.The winning offer? $240,000, with a close in just 10 days.
In the end, we went from a potential $20,000 assignment (after the buyer’s renegotiation) to a whopping $90,000 assignment fee. That’s an extra $70,000, all because we didn’t settle for less and allowed the buyer to dictate the terms.
Key Takeaways:
- Don’t settle for less: Just because a buyer tries to leverage you into a lower fee doesn’t mean you have to accept. If you know you have a good deal, stand your ground.
- There are always more buyers: Don’t feel like you’re at the mercy of one buyer. Buyers are a dime a dozen, especially when you’re marketing a great deal. If one buyer doesn’t want to pay what it’s worth, someone else will.
- Know your market: If the market truly shifts and a buyer’s concerns are valid, it’s reasonable to adjust. But if a buyer is simply trying to squeeze you, trust your knowledge and move forward with confidence.
This deal turned out to be a home run for us. It’s a great reminder that staying firm on your terms can pay off big. Always keep in mind the value of your hard-earned contracts, and don’t let a buyer push you into a corner. It’s your deal—don’t let anyone else control it!
