>> Let's take a case where there is a little bit more risk associated with something. So you're interested in buying this house, this apartment and now the seller is asking 600 and you say, no, I really 526,000. So pick a number that's not just a round number, 526 is really my limit. Now there's some risk, tell us how to think about that. >> Well first of all, the way off of the 526. See, you started out at 500 and then you went up to 518 and then 524, then you met with your spouse. You discuss this, you spoke to your banker, then you came back, small increment. You're offered 526 and you say, look, I know your house is worth what you're asking for and I hope that our living in a house would be as successful as you, because I see you have these pictures of children. But we checked out with our finances, our accountant, 526 six is all we have got. Could you help us? We’re just starting out we're a young couple. Okay? >> So in particular, one thing you're saying is instead of arguing with them and saying your house isn't worth $600. >> Oh, no. >> You're gonna say, if you can get $600 for this house, please. If I were you, I would. I, unfortunately I'm only able to, I'm only prepared to pay this much. >> This is I check my finances, this will involve paying utilities. Also, we try to figure it out. We try to calculate. This is the best we could do. It is worth more. It is worth more and I know this house has a lot of good feelings for you and good experience and hope that carries over to us. And it looks like you produce a very happy family here, but this is all we got. We're young, we're just starting out. >> So to push you a little bit, now the person says, I appreciate that. And for you, I will make this special price. I'm prepared to come down to 550,000. And so they've made this large concession and you've argued this is really your limit, perhaps it wasn't entirely your limit. What do you do now? >> Well, I can't say yes to that now, because I already gave the thing with the account and don't wanna have you look I know my wife wants this house badly and my children would love it. And to be honest with you, so would I. I like it, I appreciate you coming down. Let me go back to check with my account and speak to my lawyer. In other words, what you're doing is you have limited authority. You always want to have a backup position. Quick is risky, you don't want to go to fast. You wanna make people feel they got every nickel they can out of you and so you want people to work for concessions. So you can't say, yes right then and there. You gotta go back and call them back the next day. Could we meet with you tonight? And then you decide, whether you want to take that or say, the best we could do is 537. We worked it out to the penny, we kept calculating and recalculating and our account won't even let us go there. The accountant says 534, but we can go 537. We just love your house, that's what you do.