“The market stands at 250. My client offers you 170”. “I want 800. You can keep all the money over this price”

2010. Summer. We had just signed a contract, buying a land for a retail project in a major city of Romania. My client, happy about the end of this transaction, invited me for lunch. But as we sat in the restaurant, a gentleman came to talk to me. "You are the Greek, no?" "Hello, mister Mihai. How are you?" "Sad, very sad. You did not conclude our transaction and you bought for your client another property. Why did you play with us?" "I have not played at all, but it was impossible for me to deal with five owners, out of which three were serious, one was questionable and one was too intelligent for me to understand".

My client turned to me and asked me: "What do you mean, Ilia? You have not told me all these". Mr Mihai was very upset, but my client introduced himself and proposed to him "My name is …, I am the expansion director of … Please, have a sit with us, I am curious to find out why Ilias told you all these". Mr Mihai took a sit, we all ordered food andthey turned their heads to me…

15 months of work for a transaction…
I started by explaining to Mr Mihai what was this deal all about. I had received my client's interest to buy a land in his city, in order to develop a retail box there. This is why I traveled there many times during 2009. I had spoken with tens of people, identified lots of properties and finally chose 4. My client approved 3 of them (I am always proud of not sending irrelevant offers) and we started negotiations and questions regarding the adjustments that were necessary. Indeed I had spoken with Mr Mihai twice that year, but after another meeting of mine I informed the collaborating agent that I redraw my interest from his property. In the end my client came for the final negotiations with the two properties which remained in our shortlist, a thorough due diligence took place, the owner provided us all the documents and authorisations we needed and at that day we were happy to reach the notary.

"I worked 15 months for this project". "But why didn't you buy my land?"

"Let us enjoy been blackmailed then…"
"Ilia, this is the crucial meeting for the transaction" told me my collaborator. "What do you mean? There are five owners. Why is this the important one?" "Because all the others ones are normal, he is different, more difficult". "But he just has a 5.000 sq.m. stripe in a property of 40.000 sq.m." "And he will blackmail you for this". "Let us enjoy been blackmailed then…"

She was about 35, mother of two children. Her colleague was a bit older, talking to me only in Romanian. She was talking in English as well. Another serious, hard working person, in a city full of unserious brokers and less than 20 serious ones. But also she was feeling vulnerable, she would not dare to disagree with the owner, whatever he might say. This was "my task" to accomplish…

Meeting with "Mr Time"
I pushed the door and entered inside. I was already expected. There was a salon on my right, where my collaborator and the owner were sitting. Immediately I felt like calling the owner as… "Mr Time". I headed to them, feeling the eyes of "Mr Time" scanning me. I touched my right shoe to the back of my trousers, making sure that it was not dusted.

– "This is the Greek you have been telling me about?"
– "Yes mister"
– "Hello, my name is Ilias Papageorgiadis"
– "Have a sit, young man", "Mr Time" initiated me…

When a man surpasses an age, but still keeps up, it becomes "unidentified". This was the case for "Mr Time" too. I was sure that he was over 70 years old, but he did not look more than 55 – 60. Checking his hands carefully, I noticed that he must have worked with them all his life. What was he doing? Repairing and selling clocks. His trousers was expensive but old. His shoes were inappropriate. He did not care much about his looks, he knew that he had enough money to establish his approval by others…

Not the time for unnecessary investments…
He gave a small card, which was the same one he used to give to his clients, in order to bring it and receive back their repaired work.

– "I use this card as visit card as well"
– "Correct, it is not time for unnecessary expenses".
– "Why do you want to buy my land?"
– "We want to develop a retail project".
– "And how much money will you invest?"
– "I don't know the exact amount, this is my client's business"….
– "Our property is the only good one for retail projects in our city".
– "It is interesting indeed, but we check other options too".
– "No, no, you don't understand. If you lose your time with other properties, it means that you are not an expert".
– "This is why I am here. In case we have an agreement together, probably I will not lose my time with other properties as well".

"I want 800. You can keep all the money over this price"

– "How much you offer to me?"
– "The market nowadays stands at 250 Euro / sq.m., as asked price. But there were no transactions at this level. My client has submitted an offer of 170 Euro / sq.m. and he waits for the reply of yours as well. We already have 4 replies so far and now it is your turn".

– "Only 170? Only 250? Who told you that the market stands at 250 Euro / sq.m.?"
– "Even your partners asked me this amount, or less".
– "Look, few months ago I bought a land in Sinaia with 7.000 Euro / sq.m"
– "I doubt about this, sorry"
– "Don't doubt about my words, young man. My city is bigger, my land is better, so I should ask for more. But I will not ask 7.000, not even 2.000, or 1.000. I see you a nice guy, so I will drop my expectations to 800".

– "Mister, if you paid 7.000 Euro in Sinaia, you made a big mistake. But 800 is not the price even for downtown, not for a property at the exit of the city".
– "But it is the most important exist, you must know that".
– "Still, it is too much".
– "Then I will not sell it to you".
– "No problem at all, we can remain friends".

We stood up, shook hands and started walking. He was in front, with my collaborator and I was following, talking over the phone. At a moment, he stopped, turned back to me and told me

– "Think about it. I want 800, you can keep all the money over the price".

– "I don't do this, not my style".

– "Don't be stupid"

– "Look, you came here by my collaborator, speak with her about her money and if you want, agree with her upon prices".

"Mr Time" punished us…
"Mr Time" got very upset… This is why he "punished" me very bad. He announced that he will not sell at any price less than 1.000 Euro / sq.m., so I had to inform my collaborator that I am not interested in this property anymore…

Mr Mihai stopped me:

– "You should have told us, we could find a solution, leaving him out of the deal"
– "Mister Mihai, please try to understand. We needed some criteria, which were not accomplished without his part".

My client continued explaining to him, while he was really sad. He needed the money and he had realized that he lost a good chance to sell.

PS. This real story happened in 2009. But since then I saw tens of other projects being stopped due to excessive greed. Is it good? Is it bad? It is not my right to judge people. It is their choice to refuse reality…