My ‘Toughest’ Real Estate Negotiation

What was your toughest real estate deal ever? Nasty investor, a foreigner, or? Would it happen to be with a member of your family? Maybe a parent??

My toughest real estate deal involved buying my parents home and dealing with my widower father.

Basically, he is a very learned retired University Professor, has taught at the University level his entire career, and knows how to speak fluently in 8 languages. and knows generally a lot of ‘useless’ information that he shares in conversation and at events, according to my mom (i.e. Q: When was the Battle of Hastings fought? A: 1066 A.D.).

He has raised a large family, many of whom are well educated- MBA’s, MA’s and PhD’s. But, he still thinks we are all incompetent when it comes to business. He is very conservative, went through the Great Depression, grew up very poor, and does not like to talk about business matters nor try to understand them. He is not good at business and is nervous just talking about business matters. He gets nervous watching a basketball game and has to turn the TV off and pace the floor.

So when he moved out of his home at age 89 to an assisted living community, he wanted to sell the home. Now, it is a large home with a total of 5,400 sf, 2,700 sf finished basement, 2,700 main floor on a third acre, all very nicely landscaped with gazebo, vegetable garden, across from city tennis courts and park. It is a block from a success elementary school. I approached him many times about me buying it as a rental property, but, oh no, that would not work. He would feel bad if anything went wrong or broke after I bought it. He could not bear to keep thinking about all the trouble that might happen. And, what would I do if I needed a plumber when I live 400 miles away in Phoenix? (Short answer: Look up a number online and call a plumber).

I finally used the tried and true technique we learned as teenagers: wear him down. So, I outlined a written plan to buy the home, had evidence I had lined up preliminary financing, how it would all work, and the many benefits. Since some major repairs needed to be done to the home, I made economic obsolescence deductions as needed. We had to get the approval from all my siblings (Seven of them, and they were all just fine with it!). I reviewed my plan with him a dozen times, but he did not like to see the numbers much, they made him nervous.

A big clinching factor was that our deceased mother, who designed the house over 20 years, would want it to stay in the family. And he could drive by from time to time and know it was well taken care of. These seemed to be the clincher. He finally gave in with great reluctance and agreed to the deal. This was such a difficult two month process! But, we could not push him, an older gentleman can be stubborn.

Post Mortem

We have had renters in the home every month since the purchase, have done extensive remodeling and have taken dad back dozens of times to see the home and the attached memories. I have reminded him at least 50 times in the four years since then how nice the home has been taken care of and how the tenants have paid the rent regularly.

It turned out to be a success, but definitely the most difficult real estate negotiation I have been involved with.

Bryan Watkins is the Designated Broker for LRA Real Estate Group, LLC, located in sunny Phoenix Metro Arizona. The company offers brokerage, research and consulting to Residential and Commercial clients. Bryan owns real estate in multiple states and knows first hand the issues involved for investors.

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