Harry Helmsley Negotiating Strategy

[Don Konipol]

Harry Helmsley (before he let Leona ruin his life), became a billionaire when a billion was still A LOT of money, and started as a broker with no capital of his own.  His negotiating technique was VERY SIMPLE and unbelievably effective - he DIDN’T negotiate.  He’d make one offer, and one offer only.  If the seller didn’t accept his offer, no matter what the counter, Helmsley walked away from the transaction.  He purchased a lot of real estate for well below “fair market” value.

Now, since Helmsley was operating in the NYC market where he was a well known “player”, once his reputation for not negotiating became well known people wanting or needing to sell began accepting his offers in volume.  While Helmsley may have missed a few deals, or perhaps he may have missed an outrageous low price possibility by making all his offers the low side of reasonable instead of a “steal”, he was able to buy huge amount of property well below value with no time wasted on negotiations that don’t result in closing; late bids by all of a sudden interested parties, and second thoughts by sellers.  Oh yeah, as an aside if you accepted a Helmsley offer and than decided to sell to someone else at a higher price, Helmsley never sued you; he just would never buy, sell or in any way deal with you again.  

Harry Helmsley was known in NYC real estate circles for competence, hard work, extensive preparation, and honesty.  All the more amazing that he spent the last years of his life under the influence of Leona Helmsley, someone completely opposite.  But it shows you, when “affairs of the heart” are involved, rational thinking goes out the window!

Here’s the question for BPers; can the strategy of “non negotiation” used by Helmsley be utilized successfully by us “civilians” (non billionaire  investors)?  Or is it a strategy unique to someone in Harry Helmsley’s position?