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SportsDino · 04-21-2010, 12:36 PM

The deal ain't done until the money is in your hands.

My general policy on such deals is to continue following leads, I wouldn't have done a handshake, but once I put my name behind an offer I stick to it, but make it clear any deviation is grounds to destroy it.

I've had people try to back out of 'more than handshakes' even, the problem is people want to make a deal (usually lack of confidence) and then additional information presents itself that makes them think they have a better option. More than once I've broken off (because I didn't have enough weight behind the commitment to make it stick) and had the other party come by hat in hand wanting to negotiate on my terms again because their 'hot deal' fell through. Almost always I tell them I've moved on.

Best policy in your current situation is give B the review, mention nothing about A's price, but state you have offers you are considering. Proceed with A, if they don't move correctly and quickly enough you tell them its back on the table. If B has progressed to the deal stage by that point, you strike on them... highest committed money always wins.

I've had it go all sorts of ways, not in real estate of course, its rare that the best price comes with the best reliability... you never know if B will be blowing smoke either, so the best strategy is always minimal committment but hold solid ground on your position with each buyer. You can have a different potential deal with each buyer of course, just be consistent within that particular negotiation (its okay to be hardline with B and only accept 170 if you are willing to take the risks involved with such a position, but negotiate A at the lower price point).

In the future, anyone about to hit this situation should be aware that commiting on your end rarely makes the deal any more likely to finalize. The best strategy is to always agree on terms and make the deal dependant on successful completion of the transaction. Let people know once you agree it is in their court to follow through on schedule, but if they fail you are still in the market and its no particular concern to you. There are opportunity costs to commit without insuring the funding is there (I've been burned by not shopping an offer around once I had a sale in place and the person couldn't get funding and I was stuck with redoubling the effort).

04-21-2010, 12:36 PM	#43
SportsDino College Prospect Join Date: Oct 2001	The deal ain't done until the money is in your hands. My general policy on such deals is to continue following leads, I wouldn't have done a handshake, but once I put my name behind an offer I stick to it, but make it clear any deviation is grounds to destroy it. I've had people try to back out of 'more than handshakes' even, the problem is people want to make a deal (usually lack of confidence) and then additional information presents itself that makes them think they have a better option. More than once I've broken off (because I didn't have enough weight behind the commitment to make it stick) and had the other party come by hat in hand wanting to negotiate on my terms again because their 'hot deal' fell through. Almost always I tell them I've moved on. Best policy in your current situation is give B the review, mention nothing about A's price, but state you have offers you are considering. Proceed with A, if they don't move correctly and quickly enough you tell them its back on the table. If B has progressed to the deal stage by that point, you strike on them... highest committed money always wins. I've had it go all sorts of ways, not in real estate of course, its rare that the best price comes with the best reliability... you never know if B will be blowing smoke either, so the best strategy is always minimal committment but hold solid ground on your position with each buyer. You can have a different potential deal with each buyer of course, just be consistent within that particular negotiation (its okay to be hardline with B and only accept 170 if you are willing to take the risks involved with such a position, but negotiate A at the lower price point). In the future, anyone about to hit this situation should be aware that commiting on your end rarely makes the deal any more likely to finalize. The best strategy is to always agree on terms and make the deal dependant on successful completion of the transaction. Let people know once you agree it is in their court to follow through on schedule, but if they fail you are still in the market and its no particular concern to you. There are opportunity costs to commit without insuring the funding is there (I've been burned by not shopping an offer around once I had a sale in place and the person couldn't get funding and I was stuck with redoubling the effort).