Ok here is some rapid-fire real estate advice. My last newsletter referenced scorched earth negotiations and today I want to caution buyers and sellers about getting everything you want.
A buyer wants certain items in a contract and the seller wants certain things. A great contract has these complementary wants match in a symbiotic way. The balance of a contract can be enhanced if each side has a steam valve that releases tension so each side has a point of negotiation that can release tension. By “giving” away an area of negotiation then each party hopes to create homeostasis (stability) in the agreement. Tension invites defaults. An easy give and take sets a balance in the deal. Think of it like a set of scales where each point of negotiation is similar to placing weighted items on the scale. For example, a closing date may be really important to a seller and less important to a buyer. This issue alone might seem to tip the scale in favor of the seller but if the buyer requests something that they value more than the seller then stability is achieved.
This back and forth continues until the terms are complete – homeostasis is the goal!
Albert R. Hartley
Currently Listening:
Fresh Air hosted by Terry Gross and Tonya Mosley from WHYY NPR Network
The Prof G Pod hosted by Scott Galloway
My Favorite Murder hosted by Karen Kilgariff and Georgia Hardstark