Im at a standstill in a Real Estate Negotiation, what would you do?

Question

I am representing both buyer and seller as a dual agent. The sellers want $690,000 for their property and not a penny more or wont sell. The buyer wants to pay $680,000 and not a penny more or he wont buy.

I submitted the offer at $670,000 with with sellers to credit buyers for all recurring or non recurring closing costs. The sellers countered at $690,000 with all other terms to remain the same, meaning they are willing to pay up to $17,000 in closing costs to the buyer.

The buyer is countering at $680, 000 with all other terms and conditions to remain the same, and to get his closing costs paid for.

I'm only charging a 3.5 reduced commision,

What can we all do to make this deal happen, the lender might reduce his fees, and I dont want to reduce my commision anymore.

Please hit me with diffrent scenarious, considering that theyre both adamant at holding their ground.

Answer 1

I do real estate closings and I can't even begin to tell you how many times we cancel a deal because the parties are both "adamant" about their position only to have the deal resurrect itself because the buyer realizes they aren't going to be getting the house they want or the seller realizes they aren't going to be selling so quickly.

10 minutes after a deal dies, panic sets in and suddenly people are really cooperative.

You are talking about a $680,000 house, and only a $10,000 difference. It's small change for both the buyer and seller, but it appears the seller has bent over backwards for the buyer already.

Answer 2

ask the seller if he would be willing to hold a 10k note for the balance over 5 years, the buyer might be willing to pay it as it wont affect his cash flow much.

Another idea is ask if he would be willing to accept another asset that the buyer may have with a value of 10k that the buyer would be willing to part with, jewelry, diamonds (anything of value), savings bond.

I assume you asked them both if they would split the difference? 5k on 680k is meaningless, it doesn't make or break a deal. I'd keep beating into them, reminding the seller that prices are coming down and the buyer that interest rates are going up

Answer 3

Suck up to the fact that if the buyer won't come up any and the seller won't come down, the deal is dead.

At $680k, your commission is $20.4k. You have to decide if dumping some of that is worth salvaging the deal. Get with the lender and see how much they will move and then kick the rest off of your commission. Whatever you pull out of the deal is more than what you'll get if it collapses.

But try reasoning with them both. They're both within less than 1% of their desired strike price. However, if all 3 of you are immovable objects where you are, the deal is dead.

Answer 4

You might be able to squeeze a higher price out of the buyer if you improve the financing, such as having the seller carry part of it as a note. It depends, of course, on whether the seller needs all cash or not.

Answer 5

add value for both, show price of homes sold in that area, and stress they are lucky to get a qualified buyer in this market.