In Writing

Memory might be the least dependable faculty of the human brain. Facts, or statements presented as facts, are presented non-stop from wake up to sleep without hesitation. Humans run on facts. We can’t get enough. And we can’t remember most what we hear. When what we hear is a statement from another person, that statement is only as accurate tomorrow as the recall of the person who made it, and the recall of the person who heard it. Given that humans are human, perspectives change, needs change, words have more than one meaning, the real estate licensee who “verbally negotiates” is playing with fire.

“I will remove and install new windows in the second floor bedrooms.” Easy to remember and verify? Should be. In 30 days from now after new information on the cost of windows, labor, and with a second opinion about the condition of half of the windows one person (person paying) might recall the promise as, “I will remove the defective windows in the second floor bedrooms and replace them with new windows.” With the second opinion concluding there are only 4 of 8 defective windows, the recall of the one who made the promise no longer matches the recall of the person who accepted the promise. Who’s going to decide the difference? Who’s going to pay for the resolution?

Verbally negotiating and subsequently recording the agreement as we remember it will always end in the resolution to the disagreement being in writing with the person who pays to settle signing the agreement and a check.

Is taking the time to keep buyer and seller negotiations in writing via approved contract forms, amendments, counter offers, and notices worth the reward? I hope so. The cost of settling disagreements is greater than the money.

Author: Tom Meyer, Owner-Broker, Essential Real Estate, LLC Madison, WI

The real estate transaction, disclosure, and confidentiality are the business of a Wisconsin licensee. It's in the transaction where the skill of the licensee, and their commitment to the law where the public is protected or placed at risk. What you see REALTORS do to brand themselves and their firms, promote their service, advertise, and process paper do not require a license. I believe negotiations to create and honor a real estate purchase agreement is where the agent has the greatest value in a transaction. Paying professional fee rates for the administrative services is a choice consumers deserve. Old business model driven commission rates are taxing the home equity of American home sellers. Essential Real Estate was created to put more money in the hands of the consumer by eliminating expenses for the firm and charging a fair price for the real real estate service.

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