Ausable convinces Max about a non-existent balcony by exploiting Max's agitated state and pre-existing assumptions, crafting a detailed and believable narrative. He begins by stating, "This is not my balcony," claiming it belongs to the next apartment, implying a shared, inconvenient feature. Ausable explains his room was previously part of a larger unit, and the balcony extends from "two doors down." He then complains about neighbors using it for late-night access, making it seem like a persistent, annoying reality he's exasperated with. This blend of contextual 'facts,' a plausible history, and feigned frustration makes Max accept the fiction as reality, ultimately leading to his downfall.