Real (Estate) Negotiations Stories #2: Using a Helicopter Perspective to Sell Miami Condos

Fernando Levy Hara, AMDP ’09, leverages his decades of experience in real estate in Real Estate Negotiation Essentials: Dealmaking Techniques & Simulation, where participants learn impactful real estate negotiation techniques and immediately apply them in an online dealmaking simulation.

One of our most popular and entertaining instructors, Fernando reinforces his session teachings with personal stories. We wanted to share some of those stories to preview the program in this three-part series.

In 2006, I developed a 95-unit condominium project in Miami. The two-bedroom units were allocated two parking spaces each, while the one-bedroom units came with one. After construction was completed and we began the closings, a buyer of a one-bedroom unit presented a contract showing he was entitled to two parking spaces.

It turned out that the broker had added a second parking space at the last minute to secure the sale but had neglected to inform us. Unfortunately, my partner signed the contract without noticing this change. This signing created a significant issue, as all the parking spaces had already been assigned to other buyers, leaving us with no extra spaces to offer him.

The buyer filed a lawsuit, and we proceeded to mediation. Initially, we tried to convince him that a second parking space wouldn’t be necessary, but he disagreed. Couples often use one-bedroom units in Miami, most of whom rely on two cars due to the city’s limited public transportation options. Furthermore, the buyer intended to rent the unit as an investment rather than live there, claiming that the lack of a second parking space would cause a significant financial loss.

We recognized the likelihood of losing the lawsuit and facing a substantial payout for his claimed losses. The situation seemed unresolvable until we reminded ourselves of the importance of thinking outside the box and “making the pie bigger.”

We recalled that an investor had purchased a large penthouse unit with three bedrooms and three parking spaces. The tenant for that unit only required two parking spaces and requested a rent discount for the unused one. The investor, unwilling to lower the rent, was frustrated and hesitant to sign the lease under those terms.

During a break in the mediation, I contacted the investor and proposed a solution: “Good news! I’ve secured a tenant for your unused parking space; even better, they’re willing to commit to a long-term lease!” The tenant would require a rent discount in exchange, but the investor wouldn’t have to worry about renting the space out for years. The investor agreed.

Returning to the mediation, I asked the buyer how long he planned to hold the unit as an investment. He replied, “Eight to ten years.” I then proposed a long-term lease for the additional parking space, ensuring he wouldn’t lose prospective tenants due to the parking shortage. After some negotiation, we finalized a 10-year lease, with a clause allowing early termination if he sold the unit.

Ultimately, we only had to cover the cost of the parking space lease for four years, as the unit was sold by then. The total cost of the lease was less than 10% of what we would have paid had we lost the lawsuit, and spreading the payments over the months of the lease eased the financial burden.

As William Ury teaches, stepping back to view the situation with a “helicopter perspective” allows for the creation of innovative solutions. By expanding the pie, we resolved a conflict that initially seemed insurmountable.

About the Program

Real Estate Negotiation Essentials: Dealmaking Techniques & Simulation

This focused program, taught by a real estate developer and expert cross-border dealmaker, distills negotiation best practices into an easily applicable form for real estate professionals.

Learn negotiation dynamics to prepare yourself – on behalf of your organization or client – to understand parties’ respective interests, claim and create value, and resolve differences to close a deal – and bring your vision to life.

Dates: April 4, 7, & 9, 2025
Location: Online
Tuition: $1,200 through January 31, $1,400