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Old 06-28-2012, 02:40 AM   #1
Phanuthier
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Join Date: Feb 2002
Location: Silicon Valley
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Default Buying a House... Negotiations...

Thinking out loud here cause I can't sleep. Where I live (South Bay, San Francisco Bay area) I put in an offer for a house. (I'll use real numbers since I"m too lazy to come up with hypotheticals).

Townhouse: $438k listing price.... I offer $453k.... 12 offers on the house, the seller came back to the top 3 offers (I was one of them) and asked for $475k, remove contingency on home inspection, remove contingency on appraisal.

I think this is pretty ridiculous and bad form, but I would like this property around the range of $453k, so I said to my realtor offer $455k and give them 3 hours to decide. (Reasoning: my leverage is time) If they say no, then its no. If they say yes, great. If they are on the fence, give them 1 hr to take it or leave it as it is time sensitive and there is a Plan B option. Essentially, I've come to realize the past hour or so I'm facing Prisoners Dilmna / Game Theory, and in this negotiation where the "prisoner" is blind, I'm somewhat negotiating against myself.

Thoughts? Tactics? Stories on negotiations?
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