This year, a homeowner in San Francisco, California, agreed to sell his home for what he thought was a reasonable price. In fact, that price was lower than he felt was fair market value for the home. This best offer of ten offers was quite good.

The seller agreed to the price because the buyer had carefully reviewed the disclosures and reports on the property. The buyer's agent insisted the price was "as-is" with regard to the already disclosed defects. The buyer reiterated enthusiasm by providing a pleasant and complimentary personal letter with the offer. Nevertheless, an inspection contingency was included, "a mere formality" according to the buyer.

However, before the buyer removed his inspection contingency, he requested a drastic price concession based on the findings of his inspectors. Not only did he ask for money off the price to compensate for defects, but he also wanted a concession for the items he had already agreed to accept as is.

The seller responded with an emphatic no. It wasn't simply that he felt the new price was too low. More importantly, he thought the buyer had negotiated in bad faith.

The sellers were able to cancel offer number one and ratify another offer that same day.

Sometimes, the best way to deal with an unreasonable buyer is to say no. This is often easier to do at the offer stage than after the contract has been signed. During a contingency period, marketing essentially stops.

Sometimes, it's not easy to determine which party is behaving unreasonably. Sellers typically put more value on their home than others might. With a changing market, the gap between a seller's expectations and what a buyer is willing to pay could widen. Sellers generally perceive that their home is better than the neighbors, all things being equal (and they never are).

Consider the pros and cons. Is the buyer financially able and willing to close the sale in a timeframe that works with your schedule? Can you easily replace this buyer with another one? How significant is the difference between the first buyer's credit request and a second buyer's offer?

There's a lot of emotion involved in selling a home. Though you might not approve of a buyer's tactic, don't let this interfere with closing a sale that ultimately works to your advantage.

On the other hand, there are insincere buyers who would be better off with someone else's house. If buyers start missing deadlines, it could be a sign that the transaction might not make it to closing. Is the buyer slow to react or is the buyer's agent the cause?

The market is changing, taking the emotion out of the deal is essential; staying focused on the business deal is tantamount.