Tag Archives: real estate strategy

Bridge as Life–Using Play of the Hand Techniques to Improve Your Negotiating

My dad and mom taught me to play Bridge when I was a teenager. We had an instant game anytime we wanted with my older sister as the fourth. I play a lot of Bridge in college (probably too much, now that I think about it) and then have resumed playing as an adult with a regular group at my golf club. I have even played in a few duplicate tournaments from time to time.

Like all other card games, there is a certain element of luck involved in a Bridge game. Not so much in Tournament Bridge, but in the informal games that most of us play. That being said, I truly believe that there is also an important element of skill in the play of a Bridge hand. There are certain techniques that the declarer utilizes that demonstrate mastery of the game and almost always put the skillful player ahead of the others. It occurred to me that some of these techniques may be usable in real estate negotiations so I am chronicling them here.

•1.       The Endgame.  A clever declarer can make his or her contract if he puts the player to his left in a position where whatever he leads, the declarer wins. Picture the declare sitting South holding Ace-Jack of a suit, and his opponent sitting West holding King-Ten. If the declarer at the end of the game, can lose a trick to West when there are but two cards remaining, whatever of the two cards West leads (King or Ten), South will win both tricks. I would compare this situation to dealings with a stubborn seller, or listing agent. If you can get that person to be maneuvered into a situation where he or she is suggesting a solution to a problem, you have an advantage. You are never “bidding against yourself.” You always have a reference point to return to if things get heated. You remind the person what he or she once suggested. A lot of times, I like to embellish upon getting the other side into an “endgame” position by not responding in a telephone conversation after the person is finished. This makes the other side uncomfortable and starting to explain, and even modify, their position. That silence has helped me win many important advantages.

•2.       The Finesse. If you have Ace- Queen of a suit in your hand, and you think that the person sitting East sitting has the King, you can play a small card from the Dummy, and if East doesn’t play the King, the declarer plays the Queen from South and, in general, neutralizes the King so that it never wins a trick. This compares to a situation where you know that one of the parties to the transaction (maybe the husband or wife Seller) is very negative about the deal. You need to find a way to neutralize that person, by convincing the person you are dealing with directly (either listing agent or attorney) that this negative person can “kill this deal”. In effect you are using the old “finesse” technique to move the person to the sidelines where he or she cannot continue to be a problem.

•3.       The Squeeze. At the end of a bridge hand, a declarer with a bunch of winning cards can succeed by playing all of these winning cards to force the opponents to guess what to discard and what to hang on to. The result of the “squeeze” is to promote small cards into winners, if the opponents have not kept accurate track of the cards played. In real estate, the “squeeze” is available when we sense desperation on the other side. The skill involved here is to spend time to determine what your client or customer really wants, or needs, and then to make a longer list of demands, which eventually funnels into getting the important concessions your client really needs. You start out with a laundry list, and end  up with just the few essential items. The other side has been “squeezed” but gathers some comfort in the knowledge that they said “no” to a few requests.

If it sounds like I treat real estate negotiations as a game perhaps that is a correct observation. With the help of other real estate professionals on my team, I want to get the best possible result for my client. To me, that is what the game is all about.

If you Can’t “Walk”, You Can’t Negotiate–Never Truer Than It is Today

These are turbulent times in our industry. More attention than usual has been thrust on real estate because of the generous first-time owners tax credits and other incentives which are being offered to Buyers. A new HUD-1 Settlement procedure goes into effect on January 1, 2010. The thrust of this new procedure is to protect the “unwary”. Never in my long career in residential real estate have I seen a group of Buyers with a greater sense of “entitlement”. Couple that attitude with a general decline in home prices, and you can have a problem on your hands if you are selling property.

I am finding more and more that the only answer to this situation for my Sellers is to “walk”. In other words, while my client wants to make the deal, he or she needs to show that there are limits to what is reasonable. The only way to articulate this position is to say ” I have had enough”: ” I am putting the property back on the market.”

A recent example. A client of mine thought she had a deal to sell a beautiful piece of raw land in a scenic spot in southeastern Massachusetts. The price was agreed upon, and it looked like the deal was done. The Buyer was planning on putting a second home on the property. The attorney for the Buyer drafted a Purchase and Sale Agreement which was better suited to a multi-unit development than the purchase of a single lot piece of property. I told my client to “walk”. Turn the deal around. Tell the Buyer that this is not a game for his lawyer to show how accomplished he was at drafting. The strategy worked. The other lawyer was cut down a peg or two. We brought the deal back to reality.

It is not easy to tell your client that the best strategy is to walk away. Some Sellers are close to desperate. I truly believe that it is at these times that we, as real estate professionals, earn our stripes. You will be surprised at how quickly the tables turn when the Buyer finds out that his or her dream house is not going to be his or hers.

The Resource Triangle–“Three” who can make it Happen

As I have evolved from an attorney who sat in my office and waited for the phone to ring into a realist who started to understand that marketing is an essential part of doing business, one thing became clearer and clearer. My best efforts involved finding motivated and talented realtors and mortgage originators with whom I could work on a regular basis.

This “Resource Triangle”, as I like to call it, makes perfect sense. All three professionals involved have one goal in mind, the successful closing of a residential real estate closing. All three have something else in common: if the transaction does not close, none of us gets paid. So if a realtor in one of my Triangles calls me up late on a Saturday afternoon and tells me she or he has a Buyer who is leaving town this evening, can I come by and introduce myself, I need to appear even if it means my Saturday night plans are delayed, or even cancelled. The same availability is required from the mortgage professional. If we are going to be “Resources” and part of the Triangle, we need to be there, any time, any place.

Once the Triangle is established, it can work to everyone’s advantage. The reliability component is huge. When I tell my realtor-partner, I can turn the Purchaser and Sale around in no longer than 48 hours, and I DELIVER on my promise, he or she knows that the chances of the deal coming together are increasing at a rapid pace, and what may have looked like “bragging” was only describing a standard that he or she knew could be achieved. When the mortgage originator promises a full-blown mortgage commitment in fourteen (14) business days, AND DELIVERS, comfort and credibility abound. When I promise a client who owns a home, and is buying another, that my realtor-partner can get their present residence sold in less than a month, AND DELIVERS, I look good, my realtor-partner looks good, and the magic word “closing” is that much closer.

I have been fortunate in that I have developed several unique Triangles in my practice, the difference in make up and composition being a function of the clients I am working with and geographic compatibility. The networking groups I am involved with, such as BNI, are a natural source for Triangles.

Most of the people reading this post are Triangle-eligible. They fit into one of the three (3) categories described.  I urge each and every one of you to get your Triangles in motion at the earliest possible opprotunity. The confidence in referring your most trusted clients and customers to people who have time and again DELIVERED can make all the difference for you. You will no longer be a face in the crowd. You will be the one person who can make the deal happen