Monday, February 23, 2015

How to Negotiate in Bad Faith [Tales from the Trenches]

by Osman Parvez


Bad Faith Negotiation 101

Step 1: Set an asking price well below market value in order to lure 100+ people to your open house. Don't put it on the MLS. 

Step 2: At the open house, brag about how the inventory shortage is allowing you to double-end million dollar plus deals. 

Step 3: When asked how your sellers feel knowing they left money on the table by not allowing an open market sale, say "well, that's their choice."

Step 4: Refuse to disclose terms of any offers to agents who submit, including the current high water mark or whether intended offers are competitive. Receive over a dozen blind offers, most of which are not competitive.  

Step 5: Advise your seller that they should choose the offer from your buyer - since you know this buyer the best and you're most confident it will close. Not knowing any better, the seller takes your advice. Neither buyer or seller understand what a Transaction Broker means.

Step 6: Refuse to tell the other agents who submitted offers anything about the winning bid. Hope they forget about it and move on. They won't. 

Step 7: Pocket the double-end. Continue to brag about how many offers you received and your sales commission. Hope nobody files a complaint with the Real Estate Commission.


True story. 


----

Like this analysis?    Subscribe to our client research report.     
Want to get blog updates via email?  Click HERE.       
Ready to buy or sell?  Schedule an appointment or call 303.746.6896. 
You can also like our Facebook page or follow us on Twitter.

As always, your referrals are deeply appreciated.  

--
The ideas and strategies described in this blog are the opinion of the writer and subject to business, economic, and competitive uncertainties.   We strongly recommend conducting rigorous due diligence and obtaining professional advice before buying or selling real estate. 

image:  Fabio Di Lupo

No comments:

Post a Comment