The phantom "other" buyer

Of course there was no other buyer.

How about lowering your bid 5% and telling them it's good for 24 hours after which it drop another 1% per day until accepted or rejected.

Or better, is there any way you can get to the seller directly to find out if they even sanctioned the games the broker was playing with their money? If the broker turns out to be a freelance liar, suggest that the seller fire the broker and that you and the seller do the deal no broker and split the commission savings. It might take the threat of an ethics complaint to REBNY to get the broker to give up their claim to the commission, but then you'd get to have the extra fun of making the threat and seeing the broker cave. I'm getting jealous just making up this scenario.

I know of lots of deals that fall through. It can happen. If you want the property, go with your last offer if that is what you think it was worth.

This question needs a shakespearean answer. Your turn, Falco.

Funny. The EXACT same thing happened to us. The "other buyer" disappeared...we were asked back in, then "another buyer" came in. That one may have been real since they never came back to us. I still don't know if the place is going to contract, but so far no.

Ah, yes, the perennial other buyer. Remember, you are swimming with sharks. Kyle had good advice earlier today: re-watch Godfather 2 and study Michael Corleone's negotiation style.

Yeah, deals fall apart - but 2-3 days? Always assume they're lying.

I just want to say that I have never lied about other buyers or offers. Not once. If I tell you there's another offer, there's another offer. Other brokers may do it, but even in co-brokes I haven't see it go down that way. When my buyers have been outbid, it has been by actual buyers who went on to close their deals.

Yes, sometimes buyers get cold feet, or don't get financing. Doesn't mean they didn't exist. But I advise my buyer clients not to behave as if they are bidding against another buyer - you are only negotiating with the seller, not the other buyers. What's it worth to you? Be willing to walk away. And don't get all in a knot over whether or not some broker has fabricated a phantom buyer just to screw you out of what will represent - to the broker - a very small sum of money. Seriously - why would we do that?

Tina
(Brooklyn broker)

I did a story about this for Moneywatch: http://bit.ly/6qcuoe

ali

I know that the seller was not willing to sell below a specific amount. Yes, the difference between the bottomline of the seller and our own highest bid was small but it was there. So, if we were convinced to bring up the bid, this would close the deal.

Interestingly enough, the "best and final" round ended up in a counteroffer from the seller to both bidders, not in the selection of the "best offer".

Honestly, it was a very strange experience.

Yes, remember the percentage of deals that fall apart these days. I am keeping an eye on two properties in Fairfield Co that are attractive ---- both have gone to "best and final" -------- and then both have appeared back on the market in the succeeding weeks.
It's a poker game.

GREAT article, ali; thanx!