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3 unsung rules of real estate negotiation

Letters From the Home Front

Negotiation -- that give-and-take act of horse-trading. The idea is that you have something I want, I have something you want, and through an iterative process of offers and counteroffers, we arrive at a mutually acceptable agreement. In real estate, the seller has a house, the buyer (presumably) has money or the ability to borrow some of that stuff, and each wants to swap. Let the games begin! Now, during much of the past decade, agents didn't have to think too hard about the nuances of the negotiation process, thanks to "stated income" loans and a demand for housing that was, shall we say, a bit off-kilter. LENDER: So, I see you babysit the Patterson twins on alternating Sundays? BUYER: Yep! But only until I get my real estate license. LENDER: And would you "state" that you make, oh, $72,000 an hour? BUYER: Uh, OK. LENDER: Congratulations! You are approved for the gross domestic product of Western Europe, expressed in rupees. Now get along and go buy...