Room TBA

What a fool believes!

My parents took me to visit Syracuse University on our college trip on an unusually warm winter day. We went out for dinner at a local establishment. At the table next to us we struck up conversation with maybe 10 beautiful girls—about SU. They offered to take me around to the bars and show me the nightlife. I then committed to the ‘Cuse! But then came living there as a student the next winter…

Our daughter was a different story. While visiting my in-laws in Albany on an early characteristic January week over winter break, we trekked to SU to show Jade where her folks went to school. We drove up the long uphill driveway that I had to pace every day until we reached my dorm—Mount Olympus. It was a typical Syracuse tundra day. Probably 15 degrees. Black ice. Felt like -6 degrees with the howling gust. My wife, Veronica, wisely stayed in the car—with the heat running.

Jade and I rumbled over to the dorm, whose doors were locked. Nostril hairs freezing and ear lobes already numb after 30 seconds. Jade exclaimed, “What is going on?”

I said, “That is the wind chill.”
Jade shot back, “Wind Chill?!”

And just like that, any chance of our Florida girl going north for college was stifled faster than Edith Bunker. Also, being older, wiser and now shrewd, the non-anomaly day helped us save my money on tuition!

Still, I had fond memories of Mount Olympus—except one.

They say that no question is a dumb question. Knowing that, I walked into our dorm’s lounge area and, in front of 20 or so fellow students, asked,
“Where is Room TBA?”

Being a fool, all I knew were White Sox baseball acronyms as an 18-year-old—like Carlton Fisk’s RBI or José DeLeón’s ERA. After all, it was Syracuse, not Harvard.

Anyway, I never lived my boneheaded question down.

Making matters worse, my roommate Steve-O was a comedian. Steve-O also got a gig with the newspaper as a comic artist. A few weeks later, I’m reading the comic—and there’s an animated Jeff, asking where Room TBA is.

Being of a certain age and more sagacious, I still do ask questions. Since I know real estate, here are 13 key questions to ask during negotiations when you’re buying or selling. Since I don’t want you to be a fool— here is my “Michael McDonald” advice to give you some wise man negotiating power….

13 QUESTIONS

Representing a Buyer
A good buyer’s agent coaches their clients to not say too much to the listing agent. No keys jiggling and stone faces are best. Conversely, they need to ask questions of the listing agent.

1. How did the seller come up with the purchase price?
I ask this both in writing and verbally. You never know what’s going to come out of their mouth. Sometimes nothing, but most of the time they give a inkling—or even tell me their number.

2. Where are they moving?
This clues you in on whether they’re a “must sell” or how urgently they need to move. It’s easier to hammer on their cost of carry and lost opportunity, if they are in a need situation.

3. What is their timeline?
If they say they’re building a home and it’s ready next month, they’re under pressure. Time to go for the gusto in negotiations!

4. Any previous offers?
If there are none and the property’s been on the market a while, it indicates possible seller anxiety.

5. How much are they looking to net?
It doesn’t mean you’ll get there, but it’s another way of asking how much they’ll go down in price.

6. What is the age of the roof, the AC, the water heater?
Why ask? Because it matters—you need to know how to formulate your offer.

7. This could be 6B: Restate obvious questions even if you already know the answers aren’t positive.
Ask things like, “Can you confirm the age of the roof with the owner?” or “Verify if there is impact glass?” Why? These questions get repeated to the seller by the listing agent. It may aggravate them—but it sets the table for a lower offer being accepted.

Representing the Seller
The seller—unless they foolishly stay in the house for a showing—has the advantage, since the buyer’s agent can’t size them up in person. So the listing agent has an easier job playing detective, as they interact with both the buyer and the buyer’s agent directly.

1. How did the buyer come up with their offer price?
A mirror of question #1. I want to understand their rationale. Sometimes the buyer’s agent blurts out that they’ll come up to a higher number.

2. Where are they moving from?
If they’ve already sold their home, you know they’re a must buyer—time to negotiate harder.

3. What brought them to the neighborhood?
I want to know how committed they are. If they’re not, the risk of cancellation during the inspection period increases.

We had one earlier this year—buyers wanted to live down the street from their kids who were expecting a baby. Knowing that gave us confidence to negotiate a better price. Those grandparents weren’t going anywhere else.

4. What else are they looking at?
You learn what other homes they’ve seen—or even made offers on. If I see the buyer also viewing a home with western exposure and we’re offering eastern, I’ll casually mention how they’ll “bake” in the afternoon at the other place. See, I’ve gotten more astute since my SU days.

5. What kind of work do they do?
All sorts of insights can emerge. They’re being transferred. They just sold a business. They moved from up north. All of that gives clues to their motivation—and budget.

6. Is there anything else they need to sell?
If yes, you’ll want to examine the chain of sales and their contracts. If they haven’t sold yet, they may be less anxious. If they’re getting a mortgage, check the contingencies—because your deal might hinge on another one going through.

The one good thing about Syracuse—besides meeting my wife—was getting out of my hometown of Chicago’s winters.

I’m no fool!