Reference no: EM132407044
Discussion Prompt:
Consider the following:
- The possible negotiating options
- How would you advise your client to proceed?
Scenario #1:
Your client, Sally, has signed a purchase agreement with Bob, but a few days later she receives a better offer from Carl. Sally would really like to accept Carl's offer as a backup offer, but Carl didn't make his offer contingent on the failure of Sally's contract with Bob.
Scenario # 2:
Same situation as described in Scenario #1, except that Carl is unwilling to accept a contingent counteroffer. In other words, he wants Sally to walkaway from her contract with Bob and accept his offer instead. As an added incentive,Carl increases his initial purchase price offer by 25%, making it substantially more attractive than the contract Sally signed with Bob. Sally has informed you that she's considering accepting Carl's offer, because it's just too good to walkaway from. Sally has also indicated that she would pay you a bonus for the extra work it would take to get her out of the deal with Bob.
Scenario # 3:
Another of your clients, Dave, has done a lot of work on his home,and he wants to sell it for as much as possible. You submitted his listing to the MLS and started advertising the property on Friday. Over the weekend, Dave received five offers from prospective buyers, with various prices and contingency provisions.Dave especially likes two of the offers, because the buyers are offering significantly more than Dave's asking price. However, both of these offers are contingent on selling another home and arranging financing on very good terms. Two of the other offers are for prices a little below the asking price, and they effectively have no contingencies (the buyers have been pre-approved for financing). The fifth offer is for significantly less than the asking price.
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