Tag: Land

  • How Am I Supposed to Do That?

    How Am I Supposed to Do That?

    Some people think a good comeback is the whole game.

    When someone makes an unrealistic proposal or a demand that doesn’t work the first thing most people want to do is explain why. Lay out the reasons. Walk through the math. Win the point.

    But winning the point doesn’t do much for you in a negotiation. The other side just digs in, maybe comes up with a competing set of facts and reasons. Worse, they’re no longer thinking about making a deal, they are thinking about not losing. Which isn’t good if you want to make a deal.

    Chris Voss has a fix for this that sounds almost too simple to work.

    Instead of arguing, you ask how you’re supposed to make it happen. Not sarcastic. Not a setup. An actual question. “How am I supposed to take that to the seller when there are two other offers on the table?” Now he’s not defending his number anymore. He’s trying to solve your problem, which used to be his demand.

    Voss calls these calibrated questions. Open-ended, no yes or no available, and they hand your problem to the other person instead of making it a fight. Most people can’t resist answering a question that starts with “how.” Refusing to answer feels rude in a way that refusing to agree never does.

    I had a buyer a while back convinced he could get a large reduction, much more than what was realistic. I could’ve argued comps at him all day and gotten nowhere, because in his head the comps were the ones that made his number look right. So instead I asked him how I was supposed to bring that number to a seller who had competing offers. Then I asked how many people were going to want to work with us in the future if we got a reputation for chiseling and retrading every deal.

    He thought about it, came up with a more realistic number, and we got the deal done.

    Works the other way too. A seller with a too-high price in mind doesn’t need me to lecture him on it. He needs to hear himself try to answer how a buyer’s supposed to make the math work at that price. He’ll usually get there faster than I would’ve gotten him there.

    Statements draw a line and dare the other guy to cross it. Anybody can say no to a line. It’s a lot harder to say no to a question you have to actually sit and answer first.

    I still slip and argue the number sometimes. Old habit. But the times I remember to just ask, it goes better, and I don’t have to be right in the room to get the outcome I wanted.


    PS- That link goes through Amazon, and I’m an affiliate. Doesn’t cost you a dime more, but if you click through and buy the book, or anything else while you’re there, I get a small commission.

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  • Two Papers In One

    Two Papers In One

    A few years ago I decided to stop watching the news. Turned out to be one of the smartest things I’ve done in a while.

    I’m less worried, my mind seems to work better, I get more done, etc.

    I highly recommend it.

    And don’t worry about being “uninformed.” The way we’re constantly bombarded by media, you can’t really avoid it altogether. I’ve found that if something is big and important enough to actually matter, it will find its way to you.

    So all you really miss is the noise. Give it a try for a month and see how you feel.

    It’s easy to go back to the old way if you don’t like it.

    One exception is that I still look at the Dallas Morning News website a few times a week. I enjoy their sports coverage and also want to see if anything’s happening locally I need to know about.

    But if I’m not careful, I start reading headlines and get pulled down the rabbit hole of thinking the paper is nowhere near what it once was in terms of being a balanced source.

    It can be entertaining though. Pretty often you’ll see what I think of as the “two papers in one” effect.

    One day you’ll read about the “housing shortage” in DFW.

    The next, you’ll see headlines saying builders are slowing down because inventory’s piling up and nothing’s moving.

    So which is it?

    To be fair, it’s more complicated than that.

    DFW isn’t one market — it’s dozens of sub-markets layered on top of each other. Some areas are on fire. Others are cooling. And sometimes they trade places within a few months.

    In some areas, local regulations and land costs can make it nearly impossible to build housing at a price that fits the budget of a middle-class family. So there’s a “shortage.”

    In others, the relative affordability and better schools make it where houses almost can’t be built fast enough — at least until interest rates rise and put the brakes on it. So there’s a “slowdown.”

    In other words, market reality can be very different just a few miles away.

    That’s why broad headlines are almost useless when you’re trying to make a real decision. They can give you a general sense of the climate, but they can’t tell you what’s happening on your street, your corner, or your tract.

    If you own land, a lot, or a development site, your situation could be totally different than what the media portrays.

    That’s where talking with someone who works these deals every day actually helps — because “the market” isn’t one big story.

    It’s a bunch of small ones playing out at the same time. Written by increasingly young reporters who lack the context to really report on the market. Anyone old enough to have seen a Cowboys Super Bowl Championship can tell you today’s rates aren’t particularly high by historical standards. And that what passes for a slow market today would be a roaring success 15-20 years ago.

    Is it ever a bad time to talk to a real expert who shoots straight and knows the local dirt?