Bluffing?
What is the forum’s take on bluffing? How can you tell when the broker is bluffing you about “an interested third party” appearing before you’ve signed a contract? How do you call their bluff? On the flip side, when (if at all) do you try to bluff them with a low bid? And if you…
What is the forum’s take on bluffing? How can you tell when the broker is bluffing you about “an interested third party” appearing before you’ve signed a contract? How do you call their bluff?
On the flip side, when (if at all) do you try to bluff them with a low bid? And if you try to negotiatie a lower price during negotiations, and they say no but you feel their denial is also a bluff, how long to wait it out?
Or is bluffing in general a bad practice? Bluff bluff bluff. It sounds weird when you say it so much.
Why is a low bid “bluffing”? Thats’ just bargaining. Bluffing is when you try to give the impression that circumstances are more advantageous tro you or less advantageous to the other side than they actually are. So, for example, a phantom 3rd party is a bluff by the seller (or realtor) but a high counteroffer is not. Same way a lowball offer is not a bluss, it’s just a bargaining tactic. A buyer’s bluff would be to suggest that you are thinking of walking away from the deal, or looking at another house, when you really want to go forward with this one, or perhaps you act really surprised about the poor condition of the house following inspection when you knew all along and it was reflected in your original bid.
My view is, bargain as aggressively as you think the market will bear, but don’t bluff in a way that will cost you your credibility if you are called on it (i.e., if you say your price is your bottom line, you are stuck with it). Sellers and their agents may do the same. Misrepresentations of fact (phantom third parties, e.g.) are just plain wrong and unethical.
There’s tons of shading in this business. Many realtors will not hesitate to let false impressions linger but draw the line at lying in response to a direct question. Listen carefully to how realtors answer (and elide) your questions, and interpret their silences. Ask lots and lots of questions. If a realtor offers a guess in response to a question, make sure you get the definitive answer, and don’t let the guess become your understanding. Commenters have given you some good ideas of what to watch out for. Ask very direct questions (“has the third party put in a bid? is it higher than mine?” how do their qualifications compare to mine? etc.). How the realtor responds will tell you a lot about what is really going on.
Good luck.
I missed the open house on Saturday, the broker “did me a favor” by letting me see it on Tuesday, even though he had three offers already. The broker would only let me view the property if I had a pre approval faxed to him. After the viewing I was ready to put in my bid. I have been steadfast searching for 13 months. I know what I want I just have not been trying to pay ridiculous prices. Before I filled out my bid price the broker gentle put someone elses offer on the table with their mortgage brokers approval letter. He commented that “You should go higher, but….. I probably would not take their offer because they have a mortgage broker approval……. not a mortgage lender from a good bank like you ” I already knew what I was going to bid which was 26K less than the competition that he showed me. As I walked out another interested party walked in. He looked like a realtor I met before, probably trying to co-broke for this property. I got a call from the broker 90 minutes later informing me that he faxed the contract to my attorney. I AM FRUM BROOKLYN BABY DO NOT TRY TO BLUFF ME!!!!
I never believe this stuff. I just bought a place and they tried this with me from day one and I never responded as if it were real. The last effort was the day before I got the house. I was told that the mystery person had come in higher.I responded similarily to the person above with, “I am so disappointed that I will not be living there.” Someone told me a long time ago that to negotiate effectively you have to be willing to walk away. And you have to make them believe it.
My response to “interested 3rd party” is always been, “sell it to them then”.
the phrase an “interested 3rd party” is always a bluff. Interested is very open to interpretation…so they are never actually being dishonest.
If said a higher bid has been offered – they made a factual specific claim.
They’re always bluffing, many years ago I lowballed the best offer and got the apartment at my price. When I wouldn’t budge, mysteriously the high offer couldn’t get financing, after they already had it (what did they not try to get financing somewhere else). The Broker was definitely trying to get my price up. She now works for Corcoran, go figure.
6:56 – That was a good one,… ha, ha – woohoo!
If the broker’s lips are moving then you know he’s bluffing
It’s fine to bluff as a buyer but what if they call your bluff? So just be sure you know what the place you’re bidding on is worth to you. Then you offer less (the bluff) and work up from there to your maximum, as necessary. Don’t try to be too clever.
Re. the seller and the broker, stay in close touch with them. You don’t need to change your offer to make them very aware of your serious interest. If they are bluffing you, just make sure that you’re the one they call when they finally admit to themselves that ahigher offer isn’t coming along any time soon.
When we bought in ’99, we made a lowball offer (the house was a wreck and quite over-priced) and the sellers rejected it. Then I found out that the broker was about to lose his exclusive. So I went back to him with the same offer and basically said, “A bird in the hand…”. He re-presented our offer and the sellers accepted it.