The power of real estate negotiators
Letter to the Editor
By Inman News
Inman News®
Re: 'You can't predict the future, but you can plan for it' (Dec. 27)
Dear Editor:
One of the main points of the article by Gahlord Dewald was that a negotiation expert was only necessary when the "two sides" are relatively close in power. He indicates that when one side is particularly powerful or one side particularly vulnerable, there is little point in negotiation.
It is my experience that when there is significant disparity in the power of the parties, negotiating skill is very significant. I have spent most of my adult life negotiating real estate transactions, and it is the negotiator who makes the difference -- not the power of the parties.
A good negotiator is not a steamroller; a good negotiator is a fine-tuned instrument who can evaluate needs and wants and match each participant's needs to the available capital. The more powerful the opponent, the more delicate the touch required.
Negotiation with the government, for example, as Mr. Dewald points out, pits David against Goliath. The point Mr. Dewald tries to make is that in such cases, negotiation has little to do with the outcome.
I have been in that position, and the poor negotiator is indeed at a disadvantage. The good negotiator works to find the goal of the government and uses that to the advantage of the client. You may not win the battle, but artful negotiation will win your client a better outcome.
For example (a real one), the government was widening an exit ramp ... there was never a doubt that it would eventually get the ramp. By negotiation, we were able to save a 40-foot-high road sign for our client (even when the city demanded it be removed) and increase the award to allow our client to rework his lot's traffic flow.
This was (accomplished without) holding up the project with a protracted legal battle, and being willing to put up with several months of business disruption. Our client now has the only highway sign for miles in either direction, and even though his access was harmed, his business has maintained its sales.
While I do not question the wisdom of planning for the new realities of real estate, I also suggest that remembering our strengths and not underestimating that value is worthwhile.
Greg Semos
REALTOR®, Regency Real Estate Brokers
Mission Viejo, Calif.
Contact Inman News:
By Inman News
Inman News®
Re: 'You can't predict the future, but you can plan for it' (Dec. 27)
Dear Editor:
One of the main points of the article by Gahlord Dewald was that a negotiation expert was only necessary when the "two sides" are relatively close in power. He indicates that when one side is particularly powerful or one side particularly vulnerable, there is little point in negotiation.
It is my experience that when there is significant disparity in the power of the parties, negotiating skill is very significant. I have spent most of my adult life negotiating real estate transactions, and it is the negotiator who makes the difference -- not the power of the parties.
A good negotiator is not a steamroller; a good negotiator is a fine-tuned instrument who can evaluate needs and wants and match each participant's needs to the available capital. The more powerful the opponent, the more delicate the touch required.
Negotiation with the government, for example, as Mr. Dewald points out, pits David against Goliath. The point Mr. Dewald tries to make is that in such cases, negotiation has little to do with the outcome.
I have been in that position, and the poor negotiator is indeed at a disadvantage. The good negotiator works to find the goal of the government and uses that to the advantage of the client. You may not win the battle, but artful negotiation will win your client a better outcome.
For example (a real one), the government was widening an exit ramp ... there was never a doubt that it would eventually get the ramp. By negotiation, we were able to save a 40-foot-high road sign for our client (even when the city demanded it be removed) and increase the award to allow our client to rework his lot's traffic flow.
This was (accomplished without) holding up the project with a protracted legal battle, and being willing to put up with several months of business disruption. Our client now has the only highway sign for miles in either direction, and even though his access was harmed, his business has maintained its sales.
While I do not question the wisdom of planning for the new realities of real estate, I also suggest that remembering our strengths and not underestimating that value is worthwhile.
Greg Semos
REALTOR®, Regency Real Estate Brokers
Mission Viejo, Calif.
Contact Inman News:
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