The Mating Ritual

The process of negotiation in a real estate transaction is very much like a mating ritual.  It is a complex interplay between tactics and assets.  There is the display of plumage and then the dancing and singing which eventually results in either the culmination of the deal or one of the parties walking away and seeking out a different partner. 

If it is rushed and the elements of the ritual are not fully executed, there is little chance of a successful transaction.

I have heard recommendations that buyers should present a strong or even “best and final” offer at the first strike, but this can only be effective in a few, very specific circumstances.  One would be in a strong seller’s market where the buyer wants to be recognized and taken seriously by the seller.  The other would be in a situation where the buyer is happy to make their offer and walk away, without looking back, if it doesn’t meet the seller’s needs.

The “mating dance” allows for the parties in a real estate negotiation to develop trust and comfort during the process.  Each step of the “dance” provides an information gathering process for all parties and each step has a profound effect on the next step.  

As the ritual progresses, each party is influenced by the haggling of the other party and must make a decision as to whether to move ahead or to cut their losses and walk away.  It is a complex interplay between tactics and protecting one’s assets.

Like the mating ritual of most of nature’s creatures, the negotiating process in real estate transactions has many moving parts.  It’s important to keep your eye on the ball but not to let  the emotional components take center stage.

It is important to recognize that an expert in negotiating “mergers and acquisitions” or “the price of athletic shoes manufactured in Taiwan” might not necessarily be the best person to negotiate a high end real estate transaction on the North Shore.  It is important for the negotiator to understand local customs and rituals and be very knowledgeable about the local marketplace.  It is also helpful for the negotiator to not have a “horse in the race”.

Would you hire a peacock to advise you on the mating rituals of bald eagles?

You can learn a bit about me on my web page or my Facebook page Meyersnorthshore. You can contact me at howard@thehudsoncompany.com.