When Josh Flagg, of Million Dollar Listing "fame", climbed up on a table during negotiations with a lady Realtor, the staged hysterics translated to little more than a classic attempt to add some TV flair to an otherwise boring procedure. Most negotiations are fairly tame, and when contracts are written, deals generally only fall into place after compromise by both parties- significant compromise. When Josh climbed up on that table- no word if he needed a ladder to do so- and pranced around in front of that aging Realtor that Bravo tried their hardest to depict as some sort of siren, the scene reinforced why I so loathe agents in general. It also helps to ease my curiosity as to why Realtors are so often maligned. Hint- we're maligned, because most of us deserve it.

And so, Josh is who came to mind last month as I was in the middle of a most unusual negotiation on a most unusual property. Without getting into confidential details, the lengthy negotiations failed to produce a contract. So what went wrong? Why couldn't we put the deal together? If we had a seller who wanted to sell and a buyer who wanted to buy, what was the hang up? Well, in short, the deal was stifled by poor negotiating techniques on behalf of the seller. That's my opinion of course, but I'm the guy who verbally danced on the table in hopes of getting the deal done. When Josh danced he made like a hundred zillion dollars. I didn't even get a participation ribbon.

I was sitting at birthday party last summer, and I started talking with a woman who was attending the party with her son. I knew she had her house for sale in Geneva National, and she knew I had sold my own Geneva National house the previous summer. I was ribbing her about her house not selling (I know, I'm a jerk), and it was then that she uttered the words that increased my internal body temperature by at least 11 degrees. "It really doesn't matter what Realtor you hire, they're all the same". I think a little blood may have trickled out of my left year, but I limped through the dirt back to my car, intent on not letting her see my possibly mortal wound.

Fast forward to my negotiations last month, and I can tell you without equivocation that it most certainly does matter what Realtor you hire. There are deal makers, and there are procedural drones. Increasingly, Realtors are becoming drone-ish, unable to negotiate with skill and unwilling to let market conditions affect their actions. Need an example? Imagine a property priced at $2MM. Everyone knows it's overpriced, and it should be worth $1.5MM. I write an offer on the property for $1.4MM, which is fair, given the actual value of the home. Next is what happens in many of these negotiations that consumers won't ever see, but agents see all the time. Value at $1.5MM, asking $2MM, offer $1.4MM. The listing agent will say "thanks agent XYZ for your offer, we're countering you at $1.9MM. You know, the market is improving and before you know it, this place is going to appreciating like crazy" Me now, "Yes, but agent XYZ, the value is only $1.5MM, and everyone knows it. Your seller would do well to jump on this deal before my client loses interest". XYZ agent "sorry, but the price is the price, tell your buyer thanks for his interest".

The negotiating tactics that worked in 2003 now look as old as a painted wooden buoy. They scream that the agent is out of touch with the new market, and yet, buyers and sellers blindly put their faith in some of these agents. Perhaps they have huge amounts of exposure, or perhaps your son goes to school with their daughter. Maybe the agent used to work at the grocery store you shop at, and now she's wearing a platinum name tag. Whatever the case, it's vital that you do some research to see if your agent really does understand the current market. I'm not talking about knowledge of a market, I'm talking about wisdom. Wisdom in real estate is knowing which button to push when, and if your agent doesn't possess that wisdom, there's a chance that a deal can slip right through your fingers.

You see why my hair is gray and my synapses fire in carpet bomb style patterns? The market is testing agents, and unfortunately, many are failing to see where value is, and are mishandling offers that should turn into deals. So when I sat on that park bench with that home selling mother (sounds off, I know), I should have told her a story like this. I should have screamed, "of course it matters what agent you choose!", but I didn't. Because I was being nice. This market requires savvy, and agents who have always made a fine living by performing the role of tour guide and cheerleader, would do well to adjust to the realities of a market that is tough, and at times, downright cruel.