This is real, and imagine yourself as the seller as you read on. This technique is tried because it works, and works well. We know which buyers attempt this, and which Realtors they use. I've brought the issue up to other Brokers, but it's a tough one to prove anything wrong or unethical was done.

You've listed your home for sale, quite possibly after a divorce or family member passing away. An offer comes in, very low. This buyer has some sort of financing lined up, and their realtor is sending in several comps to try to justify the offer. Their Realtor is just pushing very hard at first, and then lets up to suggest a counter offer. You counter their offer and then they just walk away.

Less than a few hours later, another Realtor calls to let us know that they are sending in an offer. The offer comes in and it's a few thousand less than what your last counter was to the previous buyer. This one is cash and offering to close in just 10 days.

You're probably figuring out what's going on reading this. What's happened is an offer is made to you while you're hopefully in still in a time of stress. The first offer is meant to stress you out and make you believe the home really might be worth a lot less than your realtor listed it for. Once you tried to meet in the middle with the buyer you divulged how low you are willing to go while at the same time the hope of selling the property walked away from you.

Who wants that to happen once, let alone go through it twice? When the next offer comes in you're thrilled that it's verified cash and all can be done in 10 days. It's just somewhat lower than what you were willing to go before but this being done and quickly is very appealing. It can also make you think about that first offer not being so bad, maybe call buyer #1 back to see if their original offer still stands?

Buyer #1 and buyer #2 are sometimes the same buyer, but they always know each other if they are not the same buyer. Sometimes the Realtors are in on it, sometimes they have no idea and are just being used. Buyer #1 is often using a hard money lender as their source of funding to appear as a legitimate buyer. Low-ball offers with hard money lenders are a red flag. The idea is buyer #1 has poor terms and is mean/pushy so that buyer #2 can swoop in and save the day. These buyers will never use the same Realtor for both offers because it becomes obvious what they are doing.

This can be avoided by simply not responding to the first offer. If an offer is poor for any reason (price, terms), your realtor should let you know. Not all offers should be considered, especially when emotions are in play.