“Brittle” vs. “Supple” Deals
He who negotiates least, negotiates best.
–saying
OK, so that’s not how it goes (the original version substituted “government” and “governing”).
But it’s still accurate.
There are 3 reasons why that’s so, at least that I can think of.
One. While some people actually like to negotiate — Realtors often do, for one — for most people, negotiating is stressful.
As the number of rounds of negotiating climbs, stress rises, conflict increases –and the chance of a good outcome slide.
Two. Related to that, while the two sides’ stress is rising, their negotiating positions often harden.
That’s in contrast to brief(er) negotiations, when positions are more fluid and ground is easier to close.
Three. Real estate deals these days involve more rounds.
First, there’s getting to terms regarding the main Purchase Agreement.
Then, there’s the Inspection Contingency.
Then, there’s the Financing Contingency, which itself is much more protracted these days — mainly because of stricter appraisal rules.
When the Buyer and Seller have exhausted each other and it’s not even the second inning yet . . . the chances of getting a consummated deal (“a complete game,” to continue the metaphor) aren’t great.
