Doing the Deal 75

noncontingent agreement to purchase a new house four months

from now. And he needs the cash from the sale of the first house to
make good on his agreement to buy the second. Otherwise, he
must obtain an expensive bridge loan.
Helen and John are in very different places with respect to time.
Free of time pressure, Helen can reject offers below her asking
price. ‘‘I’ll just wait for a better offer to come along,’’ she says.
John, however, is in a tight spot. His bargaining position weakens
with every passing week.
The lesson in the stories of Helen and John is that you should
think about time as you enter any negotiation. Is it on your side or
working against you? You can also use time as a bargaining tool.
Here’s one example, using John and his for-sale house as a prop:

Samantha has her eye on John’s house. She likes the house,
its features, and its location. She also knows through a friend
about John’s commitment to purchase a new house. Thus, she
knows that John is in a time bind. So she makes this offer: ‘‘I’ll
agree to purchase your house for $295,000. But that offer will
expire in exactly five business days.’’ John is now in the hot
seat. He has an offer that is lower than he’d hoped for, but it’s
an offer from a qualified buyer, and the only offer he has at the
moment. And unless he can find a better offer within five days
(highly unlikely), this offer will disappear. Should he take it or
wait for something better? Meanwhile, the clock is ticking.

In effect, Samantha has offered to trade something that John

needs (a timely purchase) for something that she wants (a lower
price) using time as a lever.
Time has an impact on the progress of negotiations and the
willingness of parties to make concessions. Even if you don’t know
the time constraints on the other side, you can surmise them by
looking for the following clues:

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