Backstory: Hamptons Real Estate Negotiation Strategies

In prior Backstory columns, I’ve written about various real estate transactions I’ve been involved with over the years. Since these transactions have always made money for me, I thought I should share with you the tricks and techniques which led to my success. For example, in 1968, I bought a building in Bridgehampton and made it the Dan’s Papers office for the next 32 years. It wasn’t a commercial building. It was a private home, but it was on the Montauk Highway just west of Halsey Lane next door to a gas station on one side and a supermarket on the other (Citarella today) .

When I got there in my car, I saw that the owner of the property, an elderly man, was standing by the front door on the wrap-around porch facing the street waiting for me.

I got right to the point.

“Your advertisement in the paper said you wouldn’t take less than $42,000,” I said. “If I came to you with that, but I used a broker, you’d have to pay the broker $3,000 for his commission, so I’ll pay you $39,000.”

I know these prices are very low, but that’s what they were at the time.

The man looked at me blankly. Then he tapped on one of the Greek columns holding up the porch roof he was standing under.

“Beautiful strong columns,” he said. “$42,000. No less. $42,000 or forget it.”

I swallowed hard. “Okay,” I said.

I used the same technique, well a variation of it, to sell the home I was living in in East Hampton a year later. I’d move to Bridgehampton to be closer to my office.

That home was south of the Montauk Highway in the estate section of East Hampton. But it was a tiny place, a former barracks building measuring 20 feet by 40. And it was just on a sliver of land, about 1/8th of an acre.

I’d advertised it in Dan’s Papers for just $24,000. And here it was, a week later, and the phone rang. I was watching a boxing match on TV.

“I’d like to make you an offer to buy your house,” this man said.

The two prize fighters were circling around in the ring. “How much are you offering?” I asked. I had been told $24,000 was a fair price for it.

“$21,000,” the man said.

I was about to say I wouldn’t sell it for less than $24,000, but then, suddenly, one of the fighters, reacting to a blow on the side of his head, went down to the canvas. Would he get up? He was the champion. Defending his belt. I wanted to get off the phone.

“Okay,” I said.

The fighter did not get up before the ref counted 10. It was all over. Now Howard Cosell, a sports commentator popular at the time, said he would quickly get into the ring and talk to the fellow. This was a very big moment.

I’ve used this tactic every time I’ve been involved in a real estate situation since. It works for me. If you use it, it will work for you.

Re-reading this account, now 60 years later, I realize I said the wrong thing to the elderly man on the front porch. I’d meant if HE had a broker, not if I had a broker. But that’s not what I told him. Well, it’s fixed now.

Have a East End real estate story? Want to share? Text us at 516-527-3566. We’ll call you back, and then write it up for this weekly column. –Dan