Tips and tricks to find out if seller really has another offer
Been working on an off market deal for sometime. Offered 200k below asking, owner gets back to me five days later and says they actually have another offer. They want my best and final in two days. No idea if it’s a bluff. Anyone know of a good way to feel it out with some pointed questions?
[{"id": "i3ozfde", "text": "If that blows up, give me a call.", "replies": [{"id": "i3p2p8w", "text": "This is a game of incomplete information and if you can't obtain that information your best course of action is to work backwards from the idea that your client buys this thing at asking and asking yourself \"Is this a better or worse outcome than walking away from the deal?\"\n\nIf the answer is \"worse\" than you find a number where the answer is \"better\" and that's your true \"final and best\".\n\nIf that number gets rejected you walk away. If they were bluffing they'll try and come back and that's where the fun really begins.", "replies": [], "depth": 2}], "depth": 1}, {"id": "i3p2tmr", "text": "A lot would depend on what percentage off asking does that $200k represent.  If it is 30% off asking I'd expect the owner might not be kidding and I'd be surprised if they responded at all.  If it is 1% off asking probably not getting more offers unless it is in a great location/location/location.", "replies": [], "depth": 1}, {"id": "i3p8ikl", "text": "Very helpful. The 200k is a 6% reduction in the ask.", "replies": [], "depth": 1}, {"id": "i3pkk3w", "text": "Ask for more information from the seller about other things they are interested in besides money. What else are you bringing to the table the the completion may not be. Sell yourself along with the offer. Financing is likely coming into play  so the ability to overcome the financing hurdles matters. \n\nIf you can't get any information about the competition or extremely limited amounts, then possibly a lie.", "replies": [], "depth": 1}, {"id": "i3q20cr", "text": "You to seller: \u201cdo you know what they are planning to do with the property?\u201d \u201cAre they as strong of a buyer as I am?\u201d", "replies": [], "depth": 1}, {"id": "i3v7mkr", "text": "Just submit your best that you can do. Or call their bluff and wait it out. You can always retrade under contract depending on the quality of the asset.", "replies": [], "depth": 1}, {"id": "i457g1n", "text": "Keep the dialogue open and ask for additional info to \u201clean in\u201d to your underwrite to show your trying to get there to buy time and keep the seat warm. At the same time, move on to the next deal until they reach out to you. Either way someone is at a number that you won\u2019t pay anyways or they\u2019re bluffing. If it\u2019s the latter and your a good buyer, they\u2019ll check in on you.", "replies": [], "depth": 1}]